OQ and its Partners have invested over $10 billion in Duqm.

Together with its partners, OQ, the global integrated energy organisation, has invested more than ten (10) billion US dollars in Duqm. This substantial contribution is a reflection of their dedication to utilising Oman’s plentiful resources, supporting the government’s efforts to diversify the economy, and drawing in outside capital.

These investments cover a number of significant projects. One notable joint venture between OQ and Kuwait Petroleum International is the Duqm Refinery. Furthermore, OQ has partnered with Gulf Energy Development Company of Thailand to invest in the Marafiq Company. The Oman Tank Terminal Company’s (OTTCO) Ras Markaz Oil Storage Terminal is another noteworthy investment. Furthermore, OQ made significant investments in the project to supply gas from Fahud to Duqm.

In further detail, Oman Vision 2040-aligned Chief Executive Officer for Commercial and Downstream at OQ Hilal Bin Ali Al Kharusi said, “These investments are a reflection of the government’s plans to enhance its economic diversification strategies.” The promotion of sustainable development and the best possible use of Oman’s natural resources are highlighted in this vision. Additionally, these investments represent a paradigm shift for the industrial sector and bring enormous benefits to the downstream industries in the Sultanate of Oman.”

He noted that the Duqm Refinery is getting close to going into business and that its trial run is nearing advanced stages. He continued by saying that the majority of these projects have been successful, with their development phases finished and now functioning, producing and exporting outside the Sultanate. The first export shipments of premium diesel that complies with international standards have already left the country.

As for the Ras Markaz project executed by OTTCO in Al Wusta Governorate, Al Kharusi said: “This project is distinguished by its strategic location that links Asian and African markets. The project received 10 shipments of crude oil to date since its commissioning in January 2023, to secure the needs of the Duqm Refinery after connecting it with Ras Markaz terminal through an 80-kilometre pipeline. 8 crude oil storage tanks have been built at Ras Markaz to store and supply the crude oil for Duqm Refinery.”   

He went on to say that the project will use its strong infrastructure to satisfy the needs of the local and international markets in order to store and mix significant amounts of all sorts of crude oil. The project’s first phase covers 10 square kilometres and can accommodate approximately 26.7 million barrels. But the site is ready to hold up to 200 million barrels of oil, with 40 square kilometres set aside for its complete development. The corporation has pledged to increasing its storage capacity in line with the increasing demand from investors.

Speaking about Marafiq’s place in the Duqm Economic Zone, Al Kharusi emphasised the company’s crucial position as a supplier of services and infrastructure. This includes essential utilities like water, electricity, and sewage disposal. Further elaborating, he said that the business has effectively finished developing a power and water plant capable of producing an astounding 326 megawatts of power and 36,000 cubic metres of water each day.

As part of its environmental efforts, the corporation recently opened an 80 megawatt new power plant, which helps to cut carbon emissions dramatically. In addition to power, Marafiq has a 9,000 cubic metre per day desalination facility that provides drinkable water, mostly for the industrial zone and various other properties.

Al Kharusi emphasised that one of OQ’s major initiatives is a project centred on the pipeline infrastructure and the Duqm gas supply station, which is positioned for future growth in the region.These pipes, which have a diameter of 32 and 18 inches, are outfitted with cutting-edge automated control systems. The station itself, the control room, the measuring stations, and the pipeline facilities are all included in this integration. Interestingly, the project completed on schedule despite the COVID-19 pandemic’s operational restrictions. It was started in the middle of 2017 and completed by December 2020, all the while strictly adhering to the strictest health and safety regulations.

Adding to the project’s capabilities, Al Kharusi described how the new pipeline, which is 221 kilometres long and has a 36-inch diameter, can move a staggering 25 million cubic metres every day. However, the Duqm petrol supply station has a daily processing capacity of 15 million cubic metres. This is effectively divided among four gas separation units, with a capacity of five million cubic metres apiece. Interestingly, a flexible 25% operational margin is provided, guaranteeing flexibility in response to changing client needs.

The newly constructed facilities cover a vast 135,000 square metres, and future expansions are intended to hold an additional 10 million cubic metres. The project’s infrastructure also includes a state-of-the-art administrative building, offices, conference rooms, and fully networked workshops that function in tandem with the governorate of Muscat’s central control room.

He underlined that Duqm’s economic initiatives make it simple to access worldwide markets because of their close proximity to international shipping lanes. In addition to accelerating economic growth, this kind of strategic positioning draws investments and streamlines commercial exchanges. He emphasised that OQ and its partners’ projects demonstrate a strong purpose to diversify revenue streams, boost exports, and provide superior storage solutions and services.

Furthermore, these initiatives play a pivotal role in bolstering the industrial sector in the Sultanate of Oman. They add value to oil production and expand investment opportunities in the Special Economic Zone at Duqm for the foreseeable future.

SOURCE:https://oq.com/en/news-and-media/newsroom/20231016-over-$10-billion-investment-in-duqm-by-oq-and-its-partners