Oman: OQ8 successfully completes Lenders Reliability Test, unlocking $4bln in shareholder guarantees
Muscat: Duqm Refinery and Petrochemical Industries Company (OQ8), a strategic joint venture between OQ in Oman and Kuwait Petroleum International (KPI), has successfully completed the Lenders Reliability Test (LRT), marking a major milestone in its operational journey. This achievement fulfills all lender requirements and establishes the Actual Completion Date (ACD), unlocking over $4 billion in shareholder guarantees.
The successful completion of the LRT, a rigorous performance assessment mandated by project financiers, confirms the refinery's ability to operate at or above its agreed capacity, efficiency, and reliability thresholds over a sustained period. With ACD now secured, OQ8 has fully met its contractual obligations, seamlessly transitioning into stable commercial operations.
David Bird, CEO of OQ8, highlighted the significance of this moment: 'The successful completion of the Lenders Reliability Test and achievement of our Actual Completion Date marks a pivotal milestone in OQ8's journey. This validates our operational excellence and underscores the strength of our joint venture and the trust of our stakeholders. As we transition into a new phase of growth, we are focused on leveraging this momentum to drive long-term value, advance strategic initiatives, and strengthen Oman's role as a leading energy hub in the global market.' OQ8 has rapidly scaled up its operations, achieving 110% of its nameplate capacity and increasing production from 230,000 to 255,000 barrels per day. Within just 10 months of mechanical completion, the refinery has successfully transitioned to full-scale operations, underscoring its efficiency and reliability.
'As we move forward, our focus remains on optimising financial performance and maintaining strong governance. We appreciate the continued trust and support from our lenders, shareholders, and partners, who have played a key role in our journey,' said Mubarak Al Naamani, Chief Financial and Commercial Officer at OQ8.
This underscores the strength of the partnership between OQ and KPI, cementing OQ8's evolution into a leading regional energy player. With full operational stability, the company is well-positioned to explore new growth opportunities, further contributing to Oman's energy sector and long-term economic development in line with Oman Vision 2040.
In this regard, Azzan Al Abdullatif, Chief Portfolio Officer at OQ, stated: 'Our partnership with Kuwait Petroleum International underscores the strength of regional collaboration and the growing strategic role of Oman as a global energy hub. Successfully passing the lenders' reliability test affirms the project's strategic importance to the region's energy landscape and underscores the company's commitment to driving strategic growth and delivering exceptional results.'
Eng. Shafi Taleb Al Ajmi, Kuwait Petroleum International President and CEO 'Achieving the ACD is a clear signal of our operational readiness and technical capabilities, placing OQ8 among the most advanced refineries globally. Securing this reinforces our confidence in OQ8's growth potential and commitment to pioneering new possibilities in the refining industry.'
As the first merchant refinery in the Middle East, OQ8 demonstrates remarkable flexibility, processing a diverse range of crude and feedstocks—including Basra Heavy and West African crude—to enhance sourcing options and optimise production. Maintaining a 100% operational rate throughout 2024, the refinery has exported over 4.1 million tons of refined products globally. Additionally, its advanced feedstock strategies have reduced reliance on shareholder crude, improving commercial agility and profitability.
Beyond operational excellence, OQ8 is committed to innovation and sustainability, leveraging cutting-edge technology to enhance efficiency and minimise environmental impact. The refinery plays a key role in advancing national sustainability goals, with significant contributions to Oman's economic and social development. Since 2018, the company has invested over $2 billion in local suppliers and dedicated $5.4 million to social initiatives, reinforcing its commitment to long-term national growth and prosperity.
© Muscat Media Group Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
03-06-2025
- Zawya
Oman's liquid H2 corridor a model for global hydrogen trade
MUSCAT: A landmark agreement signed recently by Oman to establish the world's first trade corridor for liquid hydrogen (H2), marks a pivotal step in consolidating the Sultanate's position as a global hub for green hydrogen production and export. This was the central message of a recent article by Attaqa, a Washington-based Arabic-language platform dedicated to energy news and analysis. Titled "Exporting Liquefied Hydrogen Represents a Qualitative Leap for Oman and a Promising Opportunity for Middle East Countries", the article summarizes the views of several international energy experts who see the agreement as a model for global hydrogen trade. The proposed Liquid Hydrogen Corridor will connect the Port of Duqm in Oman with the Port of Amsterdam in the Netherlands, enabling the transport of liquid hydrogen deeper into Europe via logistics hubs in Germany and beyond. Key players in this groundbreaking initiative include Hydrom—the master planner of Oman's green hydrogen sector—and OQ, the Sultanate's integrated global energy group. Oman's leadership in this transformative venture has earned international praise. Salah Mahdi, Global Director of Hydrogen at Chart Industries, a major player in hydrogen liquefaction and transport technologies, described the project as a "qualitative leap" that reflects a forward-thinking vision combining ambition and pragmatism. By taking a pioneering role in this initiative, Oman is demonstrating its intent to go beyond exploring hydrogen potential and instead develop a large-scale, integrated value chain. The country is leveraging not only its abundant renewable energy resources and strategic geographic location but also its growing partnerships with European nations, he said. 'If this project is implemented well—and initial signs are promising—this corridor could become a global model for intercontinental hydrogen trade,' Mahdi told Attaqa. He called Oman's decision to adopt liquid hydrogen a 'strategic choice,' noting that liquefied hydrogen, like LNG, can be transported in bulk over long distances. Mahdi highlighted the project's integrated system, which includes large-scale hydrogen production, advanced liquefaction, refrigerated container shipping, and regasification facilities in Europe. Such an ecosystem, he said, could serve as a clean energy artery linking the Middle East with Europe. Chart Industries, he said, is currently collaborating with a number of developers in the MENA region to produce and liquefy hydrogen locally for eventual export to Europe. He noted in this regard that, as a pioneer in this field, Oman would set standards and establish infrastructure models for other Arab countries to emulate. Matt Moran, Managing Director of Moran Innovation LLC, a leading player in hydrogen liquefaction, emphasized Oman's early leadership in the liquefied hydrogen sector. He cited the nation's abundant solar potential, low-cost land, trained workforce, existing gas infrastructure, and access to seawater and methane as significant advantages. He also stressed the importance of learning from other hydrogen export projects, such as Australia's shipments to Japan, and highlighted Germany and the Netherlands as natural trade partners due to their strong demand, infrastructure, and LNG ties. Frank Wouters, Chair of the Hydrogen Alliance for the Middle East and North Africa, noted that while liquefied hydrogen is gaining momentum, it's one of several viable transport methods—others include ammonia or liquid organic hydrogen carriers. Interest in liquefied hydrogen led to the recent creation of the Dii Liquid Hydrogen Taskforce (DLHTF) by Dii Desert Energy, a leading international public-private network focusing on green hydrogen. Wouters, who leads the taskforce, said its mission is to clarify the benefits and challenges of this emerging energy carrier.
Zawya
26-05-2025
- Zawya
Oman: Duqm to anchor OQ's e-fuels push
MUSCAT: OQ Alternative Energy (OQAE), the renewables subsidiary of Oman's integrated energy group OQ, is progressing with plans to establish an e-fuels hub in the Special Economic Zone at Duqm (SEZAD), marking a significant step in Oman's energy transition strategy. The e-fuels hub, detailed in the OQ Sustainability Report 2024, will pilot the production of synthetic fuels — namely e-Methanol, e-Gasoline, Sustainable Aviation Fuel (e-SAF) and e-NG (synthetic natural gas). These fuels are expected to be produced using green hydrogen combined with biogenic carbon dioxide, offering a scalable pathway to decarbonise the transportation and industrial sectors. The initiative forms part of OQ's broader mandate to support OmanVision 2040 and the Net-Zero 2050 Strategy by advancing clean energy infrastructure and positioning Duqm as a global green energy hub. The report highlights Duqm's growing role in the green hydrogen value chain. In addition to the e-fuels pilot, OQ is developing a 10–15 megawatt green hydrogen demonstration plant in SEZAD. The facility is expected to provide hands-on operational experience while supporting future commercial-scale projects. OQ's energy portfolio in Duqm already includes several flagship ventures, including HYPORT Duqm — a 1.3 GW renewable energy joint venture with DEME and BP — and the Green Energy Oman (GEO) project, a collaboration with Shell, InterContinental Energy and Enertech. 'These pilot projects aim to demonstrate the technical viability of synthetic fuel production while unlocking downstream demand for green hydrogen in shipping, aviation and industrial use,' the report stated. OQ is also exploring opportunities to position Oman as a global bunkering destination for low-carbon fuels and is developing downstream applications to boost market demand. The company is piloting new vectors such as methanation and carbon utilisation technologies that convert green hydrogen and capture CO₂ into cleaner fuels. The proposed e-fuels hub is expected to play a strategic role in building Oman's green hydrogen export capabilities, offering direct access to international markets via Duqm Port. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
15-05-2025
- Zawya
Oman: Energy shift must reflect local realities, experts warn
MUSCAT: Global energy experts convening at the Oman Petroleum & Energy Show (OPES) have urged governments and industry leaders to adopt more realistic, inclusive, and economically grounded strategies to drive the clean energy transition. During a high-level session titled 'Innovation in New Energies to Enable the Transition', speakers highlighted the urgent need for regulatory clarity, social engagement, and investment frameworks that reflect on-the-ground realities in the Middle East and beyond. Organised by the Society of Petroleum Engineers (SPE), the panel brought together senior voices from Oman's Ministry of Energy and Minerals, OQ, SLB, Olayan Saudi Holding Company, and Petronas. Dr Firas al Abduwani, Director General of Renewable Energy and Hydrogen at the Ministry of Energy and Minerals, opened the discussion by emphasising that the real challenge lies not in technology, but in crafting effective policy. 'Everyone talks about the need for more renewables, but few appreciate the complexity of policymaking. It's not just about ambition—it's about designing policies that reflect economic and social realities,' he said. He explained that Oman's natural gas, partly subsidised and socially priced, plays a vital role in electricity generation, desalination, and industrial production. Transitioning from this foundation requires careful sequencing and institutional alignment. Dr Talal al Aulaqi, Vice President of Energy Excellence at OQ Alternative Energy, warned that while policies are accelerating, social behaviour has yet to catch up. 'Every summer, we see power demand spike. That tells us people still expect reliability from fossil systems,' he said. 'We must ensure the transition is inclusive and that citizens have a role in shaping it.' He called for demand-side engagement tools, such as distributed solar, energy efficiency incentives, and education campaigns to bridge the gap between national strategy and public expectations. Salih Merghani, Executive Vice President for Energy at Olayan Saudi Holding Company, said the clean energy transition cannot advance without clear, long-term market signals. 'We've seen successful pilot projects in carbon capture and green industrial solutions, but they won't scale without demand certainty and regulatory support,' he said. He noted that the absence of carbon pricing in many regional markets is limiting the ability of private capital to move decisively into low-carbon investments. Guillaume Verhaeghe, Director of New Energy MENA at SLB, called for leveraging decades of oil and gas expertise to fast-track carbon capture, utilisation and storage (CCUS). 'The region has the technical capability. Now we need permitting reforms, financial incentives, and cross-sector partnerships to deliver CCUS at scale,' he said. He added that reusing existing infrastructure for new energy applications could reduce transition costs and create regional leadership in climate technologies. Emry Hisham Yusoff, Senior General Manager of Carbon Management at Petronas, said Southeast Asia is moving cautiously—balancing environmental goals with economic development. 'Yes, we're expanding CCUS and renewables, but gas remains crucial for energy access,' he said. 'To scale climate solutions, we need public-private coordination and government-backed incentives.' He highlighted the role of frameworks like the US Inflation Reduction Act as models for de-risking early investment in carbon management. Across the panel, speakers emphasised that energy transition is not merely about new technologies—it is a systemic transformation that requires public acceptance, economic restructuring, and policy coordination. As Oman moves forward under Vision 2040, the session reinforced the Sultanate of Oman's position as a regional innovator in green hydrogen and low-carbon energy—but also underscored that successful transitions must be gradual, inclusive, and grounded in national context.
