Oman Oil Company S.A.O.C. (OOC), the Sultanates investment arm in the energy and energy related sectors, and Kuwait Petroleum International Ltd (KPI), the international subsidiary of Kuwait Petroleum Corporation (KPC), have signed a Memorandum of Understanding (MOU) to cooperate in the development of the Duqm Refinery and Petrochemical Complex in the Duqm Special Economic Zone (SEZ) in Omans Al Wusta Governorate.
This strategic partnership is part of the efforts being made to seek further investment opportunities that open doors to develop major industrial projects in Duqm.
The MoU was signed on behalf of OOC by Mr. Hilal Al-Kharusi, Acting Executive Managing Director of Duqm Holding and Mr. Bakheet Al-Rashidi, CEO of Kuwait Petroleum International Ltd (KPI), at Crown Plaza Hotel in the Duqm Economic Zone with the attendance of H.E. Yahya bin Said Al-Jabri, Chairman of the Board of Directors at Special Economic Zone Authority at Duqm (SEZAD), HE Dr Darwish Saif Al Muharbi Vice Chairman of Oman Oil Company, Eng. Isam bin Saud Al-Zadjali, CEO of OOC, Mr. Nizar Al-Adsani, Deputy Chairman of the Board and CEO of Kuwait Petroleum Corporation (KPC) and Mr. Ghanim Al-Otaibi, Vice President - Asia - of Kuwait Petroleum International (Ltd), in addition to other officials from both sides.
Eng. Isam Al Zadjali, CEO of OOC commented on this MoU agreement saying, "OOC is keen on partnering with strategic companies to help develop promising projects, and continues to play a significant role in developing and diversifying the regional and national economy. He added We look forward to a successful partnership with Kuwait Petroleum International to continue envisioning and developing joint investment projects, serving mutual interests. We also hope that this partnership will bring about new opportunities and prospects in the energy related sector".
Mr. Nizar Al-Adsani, Deputy Chairman & CEO of Kuwait Petroleum Corporation (KPC) highlighted the importance of the MoU agreement, saying, "This potential opportunity exemplifies the spirit of economic cooperation between our two great nations and helps achieve two major milestones, namely satisfying KPCs strategy of investing in strategic markets, in regions that strengthen and consolidate KPCs current markets and building strong economic ties with a sister GCC country". He added, "We all hope that this project will be the catalyst and ignition towards the start of similar projects in the energy field between GCC countries, where this mega project will ultimately lead towards transforming the Duqm area into one of the most important hubs for energy related industries regionally as well as internationally, eventually leading to a move from classical competition between GCC countries towards integrating and complimenting each other".
Mr. Bakheet Al-Rashidi, CEO of Kuwait Petroleum International Ltd (KPI) stated, "In addition to the local Omani rich experience in the oil related industries, KPIs ample international experience in mega refinery and petrochemical projects, which KPI will cross fertilize and bring about to the Duqm Project from its European and Asian operations, will further support and guarantee the success of the project and will create a pool of regionally trained work force for this project and future projects in the oil industry". He added, "This opportunity has attracted vast local and international attention due to its unique nature, as well as the benefits it will bring about to the region and two countries, in addition to paving the road for further cooperation between both countries".
The Duqm Refinery project is located in the special economic zone in Al Duqm, in the South East Al Wusta Governorate of the Sultanate of Oman. This gives the project a strategic maritime location and a competitive advantage being in the path of international shipping lines in the Indian Ocean and the Arabian Sea thus, easing the process of transport in and out of the region. The refinery once completed will have the capacity to process 230 000 bpd of crude oil that will serve both local and international markets.
The Duqm Refinery will be one of the growth engines for the special economic zone. It will provide development opportunities for new projects that will directly and indirectly interface with the refinery.
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