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.
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