IPIC entered an agreement in October 2009 with the state-owned Oman Oil Company (OOC) to assess the feasibility of building an oil refinery in the southern coastal town of Duqm, in the Sultanate of Oman. The successful completion of the feasibility study led to the formation of a new 50:50 joint venture company, the Duqm Refinery and Petrochemical Industries Company, owned by IPIC and OOC.
The new company will construct, operate and maintain a refinery complex with a processing capacity of about 230,000 barrels per day, designed to process a mixture of Abu Dhabi, Omani and other UAE crude oil to be shipped out as refined products, and as petrochemicals in later phases.
Duqm has been designated as Oman’s next industrial centre, with investments of up to $15 billion targeted in petrochemicals and infrastructure over the next 10 years.
The refinery will be built at a 900-hectare site located just north of the Port of Duqm and connected to a proposed Liquid Jetty by a pipeline system. Duqm Petroleum Terminal Company (DPTC), a joint venture of the Port of Duqm Company (10 per cent), and Oman Oil Company (90 per cent), will operate and manage the jetty. The facility will be designed to accommodate ships of around 150,000 deadweight ton (DWT) capacity, bringing crude feedstock or loading refined products for export.