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Oman Oil Company to partner with Kuwait Petroleum for Duqm refinery

Facility is part of vast industrial zone that is Oman’s single biggest economic project

Earlier the Sultanate failed to reach agreement with IPIC of Abu Dhabi

MoU would equally combine crude oil from Kuwait and Oman

 

Oman Oil Company chief executive Issam Al Zadjali said on Tuesday that the firm would sign a memorandum of understanding with Kuwait Petroleum Corporation (KPC) for a partnership at Oman’s Duqm refinery.

The facility is part of a vast industrial zone that is the Gulf Arab Sultanate’s single biggest economic project and aims to diversify its economy away from oil.

 

Read: Oil oversupply finally over?

 

Zadjali said he expected the agreement with KPC to be signed on Wednesday and comes after Oman failed to reach an agreement with Abu Dhabi’s state-owned International Petroleum Investment Co (IPIC).

“For the time being, our partners from Kuwait will replace the partner from the United Arab Emirates,” he told Reuters.

Kuwait Petroleum Corp CEO Nizar al-Adsani said last week that the memorandum of understanding would equally combine crude from the two energy-rich Gulf Arab states.

“It’s 230,000 bpd. It’s mixed crude (from) Oman and Kuwait, fifty-fifty,” Adsani told reporters.

 

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