JV planned for Duqm refinery
Published: 06/12/2009 12:24 am
Oman is contemplating building the much-delayed refinery and petrochemical complex at Duqm in association with an Abu Dhabi-based joint venture partner
Oman is contemplating building the much-delayed refinery and petrochemical complex at Duqm in association with an Abu Dhabi-based joint venture partner.
H E Dr Mohammed bin Hamed al Rumhy, Minister of Oil and Gas, said the recent agreement signed between Oman Oil Company and Abu Dhabi-based International Petroleum Investment Company (IPIC) was for a possible partnership.
Oman Oil Company signed an MoU with the Abu Dhabi investment firm last month for conducting another feasibility study on the project. Things have changed since we started thinking of setting up the project.
Now we are revisiting everything once again to make sure that it is the right thing to do. The consultant is looking at the whole market condition," said H E Dr Rumhy. The minister said that the government is looking at the larger picture now. "These are the things we are looking at now. Projects have to be big to achieve economies of scale these days."
According to the initial study, the envisaged capacity of the project was around 200,000 barrels per day. However, the new study will review the capacity and petrochemical product slate in the light of recent changes in demand. The government is yet to take a decision on the size of the project, which will depend on the findings of the consultants.
"We have not yet reached that stage," he said. Building refinery and petrochemical facilities at Duqm is important for the sultanate's economy. The Duqm Refinery and Petrochemical Complex is expected to play a significant role in Oman's plans to diversify and develop the economy.
Abu Dhabi government-owned IPIC is a long-term equity investor. IPIC has become one of the leading companies in the field of petroleum and energy investment since its inception in 1984."