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29 March 2024

Oman and UAE firm study refinery and petchem plant

Published
By Reuters
Oman and the United Arab Emirates are conducting a feasibility study to build a refinery and a petrochemical plant in the sultanate's new city at Duqm, a statement said on Wednesday.

The two projects will be jointly owned by state-run Oman Oil Company (OOC) and Abu Dhabi's International Petroleum Investment Company (IPIC).

"The final configuration will be based upon detailed feasibility and marketing studies which will be undertaken by OOC and IPIC in conjunction with international consultants," the statement said.

Oman shelved the original plan to build the 200,000 barrels per day refinery last year due to the global financial crunch in Duqm. Oman already has two refineries in Muscat and Sohar.

"This is not the same refinery project. The capacity and the cost of the new project is not yet determined but will depend on the study," Shabib Al-Kindy, OOC spokesman told Reuters.

Analysts said that Oman was looking for a partner to build its two most ambitious projects in the energy sector.

"I see this new development as a risk-sharing business venture as well to reduce cost," Nabil Jawad Sultan, a business analyst said.

Oman is developing Duqm, in the Wusta region,  as a major industrial city with airport and sea port tenders already awarded.

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