OQ8 completes LRT, unlocking $4 billion 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 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 approx RO 1.54 billion ($4 billion).
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."
Duqm Refinery, located in the Al Wusta region on Oman's southeast coast, has exceeded 110% of its nameplate capacity, boosting output from 230,000 barrels per day (bpd) to 255,000 bpd. The facility reached full operational status within 10 months of completing mechanical works, the company said.
Mubarak al Naamany, Chief Financial and Commercial Officer of OQ8, said the project's progress strengthens the joint venture's ambition to establish Duqm as a regional refining and petrochemicals hub, aligned with Oman Vision 2040.
Azzan al Abdullatif, Chief Portfolio Officer at OQ, added that the refinery is helping position Oman as a growing energy center in the region. 'Clearing the reliability test underlines the project's strategic importance and enhances its appeal to global markets,' he said.
Chief Executive Officer of Kuwait Petroleum International (KPI) Shafi Taleb al Ajmi said the completion milestone confirms the refinery's technical strength, calling it 'one of the most advanced refining facilities globally.' Duqm is the first independent commercial refinery in the Middle East. The plant is designed to process a variety of crude grades, including Basra Heavy and West African blends, which allows it to optimize supply and improve efficiency.
The company said it operated at 100% utilization throughout 2024, exporting more than 4.1 million tonnes of refined products globally. Feedstock strategies have also helped reduce dependence on shareholder crude, enhancing commercial flexibility and profitability.
Duqm Refinery is also investing in sustainability and innovation. Since 2018, it has spent over $2 billion on local suppliers and allocated more than RO 2 million ($5.4 million) to social development programs. It said these efforts support Oman's broader environmental and economic goals.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
a day ago
- Observer
NEDC strengthens future-readiness amid grid expansion challenges
MUSCAT: Nama Electricity Distribution Company (NEDC) has pledged to vigorously address any vulnerabilities - legal, digital, and operational—that could impact the company's future resilience and its alignment with Vision 2040 energy goals. Potential challenges, cited in its 2024 Annual Report, include smart meter data inconsistencies, delayed SCADA integration in rural zones, and ongoing legal disputes tied to land access for substation projects—factors that could delay Oman's grid modernisation efforts and expose the company to compliance risks. 'Readings from smart meters were occasionally inconsistent due to discrepancies during the integration of legacy platforms post-merger,' the report notes. While NEDC has deployed over 1 million smart meters—achieving 75% national coverage—the integration of disparate systems inherited from the 2023 utility consolidation has created data quality gaps. This raises concerns over billing accuracy, energy auditing, and real-time load management, particularly as the utility sector becomes increasingly digitised. In parallel, the report reveals delays in achieving full operational control across NEDC's diverse service regions. 'Progress in integrating remote monitoring with regional control centres is ongoing, with delays in full real-time observability in rural zones,' the report says. This limited grid visibility in certain governorates means parts of the network remain vulnerable to manual fault detection, delaying outage responses and reducing the effectiveness of smart infrastructure investments. The report also discloses that 'legal proceedings related to disputes over right-of-way and land access have been initiated in two governorates'. These disputes have the potential to impact grid expansion timelines, especially for primary substations serving planned residential and industrial areas. Despite these risks, NEDC maintained its core performance indicators, including RO 307 million in revenue and a 3.6% increase in customer accounts. The company has also invested RO 154 million in capital expansion, while achieving an Omanisation rate of 98.6%. Yet the road ahead will require more than technical upgrades. Stronger regulatory alignment, proactive community engagement on land access, and cyber-governance reforms will be crucial to ensure NEDC not only grows—but does so sustainably.
Observer
2 days ago
- Observer
Oman leverages ‘precision agriculture' to strengthen food security
MUSCAT: The Sultanate of Oman is increasingly harnessing technology and innovation to expand and diversify its agricultural base, with the goal of strengthening food security in a sustainable manner. To this end, various state-owned enterprises are deploying precision agriculture techniques—centered on the use of AI and other tech-based tools—to boost crop yields and food production while minimizing water use and other inputs. This technology-driven approach has been emphasized by Saud Hamoud Al Habsi, Minister of Agriculture, Fisheries and Water Resources, in a recent interview featured in Oxford Business Group's (OBG) 2025 annual spotlight on Oman. 'Oman's agricultural strategy over the next five to ten years prioritizes strengthening food security by diversifying crop production, increasing livestock numbers, and boosting aquaculture. Diversifying crops aims to make the Sultanate more self-sufficient and reduce dependency on imports,' Al Habsi said. 'To make Omani agricultural products more competitive on a regional scale, modern farming practices—such as precision agriculture and sustainable methods—are being adopted to improve yields and reduce input costs. Additionally, the development of food safety systems and the improvement of food establishments enhance product value while minimizing food loss and waste. Export markets are being developed through quality certification, targeted marketing, and collaboration with trade bodies to ensure Omani products meet international standards,' the Minister added. Precision agriculture is a modern farming practice that uses advanced technologies to monitor, measure, and respond to variability in fields, with the goal of optimizing productivity while reducing waste and environmental impact. It involves tools such as GPS-guided tractors and harvesters, soil and crop sensors, drones and aerial imaging, satellite-based remote sensing, and AI-powered farm management software. According to Al Habsi, technology and innovation are 'transformative forces' that enhance productivity and resource management. 'Precision agriculture, with tools including GPS, IoT sensors, and drones, allows real-time monitoring of soil health, crop conditions, and water usage—optimizing the application of vital inputs. Advanced irrigation systems, such as smart and drip irrigation, help conserve water, thereby supporting environmental sustainability, one of the four pillars of Oman Vision 2040,' he noted. Vision 2040 targets a significant strengthening of agriculture and food security by raising food self-sufficiency from around 48% to 70%, expanding cultivated land from 544 km² to 1,044 km², and promoting high-value crop production. The strategy emphasizes sustainable water use, aiming for a 40% increase in availability, and supports the adoption of modern technologies, precision farming, and digitized agricultural services. The Ministry, in collaboration with various agri- and food-focused public enterprises, has already made significant progress in leveraging technology to achieve these goals. 'Climate-resilient crops and new farming techniques such as hydroponics and greenhouse cultivation are being introduced to maximize output with limited resources. Data analytics and AI tools help farmers make informed decisions based on market trends, crop health, and weather predictions. Agricultural biotechnology, such as tissue culture, is improving crop yields and resistance to disease. Integrating these technologies enhances productivity and ensures a more sustainable and resilient agricultural system,' Al Habsi said. A leading example of precision agriculture in Oman is the Million Date Trees Plantation Project, which has employed satellite imagery, GIS, and AI to optimize date palm cultivation. Data collected via sensors and drones are analyzed using AI/ML technologies to detect issues such as pest infestations, enabling targeted interventions. This has led to increased production and improved date quality.
Muscat Daily
7 days ago
- Muscat Daily
Oman, Turkey announce RO5mn venture to boost marine industry
Muscat – Musandam International Investment Company, in partnership with Turkish investors, has signed binding commercial terms and a shareholders' agreement to establish the Musandam Drydock and Marine Industries Company. The venture, based in Musandam governorate, will see an initial investment of over RO5mn in its first phase. The signing ceremony was attended by H E Dr Saud bin Hamoud al Habsi, Minister of Agriculture, Fisheries and Water Resources, and Sayyid Ibrahim bin Said al Busaidi, Governor of Musandam. The company will offer a range of marine services including construction and maintenance of fish farming cages, coastal and commercial fishing vessels, marine tugs, service vessels, and transport vessels up to 35 metres in length. The facility is intended to cater to Oman's domestic market as well as regional demand. The project aims to enhance industrial integration in the marine and fisheries sector, supporting national goals for food security and sustainable economic growth. It forms part of Musandam International Investment Company's wider strategy to build an integrated local ecosystem and promote development in Musandam, aligned with Oman Vision 2040.
