Oman: Duqm Refinery successfully completes Lenders' Reliability Test
Duqm – Duqm Refinery and Petrochemical Industries Company (OQ8), a strategic joint venture between Oman's OQ Group and Kuwait Petroleum International (KPI), has successfully completed the Lenders' Reliability Test (LRT), marking a major milestone in its operational journey.
This achievement fulfils all lender requirements and establishes the Actual Completion Date (ACD), unlocking approximately $4bn 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 the 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 the occasion, saying, '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 ten 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 milestone reinforces 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.
Azzan al Abdullatif, Chief Portfolio Officer at OQ, said, '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 highlights the company's commitment to driving strategic growth and delivering exceptional results.'
Eng Shafi Taleb al Ajmi, President and CEO of Kuwait Petroleum International, said, 'Achieving the ACD is a clear signal of our operational readiness and technical capabilities, placing OQ8 among the most advanced refineries globally. Securing this milestone 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 4.1mn tonnes of refined products globally. Additionally, its advanced feedstock strategies have reduced reliance on shareholder crude, improving commercial agility and profitability.
© Apex Press and Publishing 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
7 hours ago
- Zawya
Oman: New public transport hub to come up in Buraimi
Buraimi – The Governorate of Buraimi and Mwasalat signed an agreement last week to establish a new integrated public transport station in the wilayat of Buraimi. The project forms part of efforts to expand sustainable mobility infrastructure under Oman Vision 2040. The new transport station will be developed in the North Aqda area on a 56,000sqm plot, serving both intercity and local routes. Facilities will include a smart taxi terminal, micro-mobility options, air-conditioned waiting areas, commercial and logistics spaces, parking for buses and private vehicles, as well as dedicated offices for operations. The agreement was signed in the presence of H E Eng Khamis bin Mohammed al Shamakhi, Undersecretary for Transport in the Ministry of Transport, Communications and Information Technology. Dr Hamad bin Ahmed al Busaidi, Governor of Buraimi, signed on behalf of the governorate, while Eng Bader bin Mohammed al Nadabi, CEO of Mwasalat, represented the company. Under the terms of the agreement, Mwasalat will take on technical responsibilities including design specifications and implementation oversight. The company will also manage and operate the station once it is completed. The governorate will provide funding and manage regulatory aspects such as land allocation and zoning approvals. Busaidi said the station would support a shift in the public transport landscape in Buraimi. 'The station will serve a large number of passengers, especially with the 12 daily trips between Muscat and Buraimi,' he said. 'It will also reinforce Buraimi's position as a key transit point along the Muscat-Abu Dhabi corridor.' Eng Nadabi said the project also has commercial potential. 'A tender for the station's development and operation will be issued shortly,' he said. 'Construction is due to begin within three months and is expected to be completed in three years.' The initiative aligns with Oman's national objective to enhance domestic connectivity and promote governorates as regional centres for transport and logistics. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Zawya
a day ago
- Zawya
Oman: Shipbuilding hub to boost Musandam's economy
The deal was formalised in the presence of Dr Saud bin Hamoud al Habsi, Minister of Agriculture, Fisheries and Water Resources, and Sayyid Ibrahim bin Said al Busaidi, Governor of Musandam. In a major boost for Oman's marine and fisheries industries, Musandam Global Investment Company SAOC (MGIC) and its Turkish partners have signed binding commercial terms and a shareholders' agreement to establish Musandam Drydock and Marine Industries LLC, a shipbuilding and repair facility in Musandam Governorate. The deal was formalised in the presence of Dr Saud bin Hamoud al Habsi, Minister of Agriculture, Fisheries and Water Resources, and Sayyid Ibrahim bin Said al Busaidy, Governor of Musandam. The project, backed by an initial investment of $15 million, will support the construction and maintenance of aquaculture cages, fishing vessels, tugboats, and service and transport vessels up to 35 metres in length. It is set to serve both domestic and regional markets, aligning with Oman's strategy to enhance food security and marine industrial capacity under Oman Vision 2040. In an exclusive interview with the Observer, Raed al Shehhi, Chairman of MGIC, emphasised the project's strategic importance, "The launch of Musandam Drydock and Marine Industries LLC is aligned with our long-term strategy to build an integrated and diversified economy in Musandam. This project directly supports Oman Vision 2040 by fostering sustainable industrial growth, enhancing food security through support to fisheries, and creating meaningful employment.' According to Al Shehhi, the first phase of the project will include the development of slipways, fabrication workshops, and maintenance yards tailored for small to medium-sized vessels. The company will also build infrastructure for manufacturing and servicing aquaculture cages and coastal fishing boats. 'Phase one focuses on establishing the core shipbuilding and repair infrastructure. Future phases will likely include expansion to handle larger vessel classes, integration of smart technologies, and development of ancillary industries,' he explained. The decision to invest in this sector was driven by strong market signals, both nationally and regionally. 'The Sultanate of Oman has seen a steady increase in demand for modern fishing vessels and aquaculture infrastructure, in line with its national food security strategy,' Al Shehhi noted. "Regionally, the GCC marine sector is expanding, particularly in sustainable fisheries and coastal transport. However, there's a shortage of specialised facilities for these services — and we're stepping in to fill that gap.' Equally important to the project is its social and economic impact on the local community. MGIC has committed to an aggressive Omanisation and skills development programme, focusing on Musandam's youth. 'We are creating 50 direct jobs for the local community in the initial phase alone,' Al Shehhi said. 'We are also developing specialised courses in welding, marine mechanics, vessel design, and industrial safety, along with apprenticeship pathways. The aim is not just employment, but cultivating a generation of skilled professionals who can drive long-term growth in the marine sector.' The company's Turkish partners bring substantial technical know-how to the initiative. Their expertise in shipbuilding and modular construction will play a vital role in setting up world-class facilities and transferring knowledge to Omani technicians and engineers. 'Our partners bring experience in marine engineering and will support us in applying international best practices across the board — from project management and quality assurance to environmental compliance,' Al Shehhi affirmed. Beyond industrial development, the drydock project is expected to position Musandam as a strategic hub for marine services, leveraging its unique geography and proximity to key shipping lanes. The move represents another milestone in Oman's broader strategy to unlock regional development and local value creation in its northernmost governorate. The incorporation of Musandam Drydock and Marine Industries LLC signals more than just economic activity — it marks a commitment to sustainable, integrated growth built on innovation, partnership and local empowerment. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
a day ago
- Zawya
Oman: Dhofar gears up for khareef with 100 tourist sites, 7,300 rooms
SALALAH - Dhofar Governorate is gearing up for its signature tourism season with a marked increase in hospitality capacity, as the number of licensed establishments reaches 100, offering 7,300 rooms, the Directorate General of Heritage and Tourism has confirmed. The expansion — driven by new hotel openings in Salalah, Taqah and Mirbat — is part of wider preparations for Khareef 2025, a key period for tourism in Oman. 'This capacity growth reflects our strategic focus on readiness and service excellence,' said Abdullah bin Omar al Sabbah Baaboud, Assistant Director of the Promotion Department in Dhofar. The Ministry of Heritage and Tourism, he noted, is working in tandem with stakeholders to upgrade tourism infrastructure and attract further investment into the hospitality sector. These efforts align with Oman Vision 2040, which positions tourism as a vital contributor to economic diversification and local development. According to official data, Dhofar welcomed 1.048 million visitors during the Khareef 2024 season, a 9 per cent year-on-year increase. Omani visitors surged by 70.1 per cent to over 734,500, while Gulf visitors rose 16.9 per cent, reaching nearly 177,000. Visitors from other Arab nations also posted a modest increase of 3.6 per cent. By end-2024, Dhofar had 83 licensed hotel properties offering 6,537 rooms. The additional supply — set to reach 100 hotels by summer 2025 — aims to meet rising demand and expand accommodation options for a diverse visitor base. The 2024 season also featured a significantly extended calendar of events, running for 90 consecutive days. Activities ranged from cultural showcases and family entertainment to sporting attractions such as the Salalah International Cycling Tour, drawing broad audience engagement across the governorate. The ministry implemented targeted marketing campaigns, participated in international travel exhibitions; and organised media and trade familiarisation trips. Social media outreach also intensified, partnering with regional influencers to reinforce Dhofar's profile as a leading monsoon destination. Officials expect further growth in visitor arrivals over the coming seasons, supported by continuous infrastructure upgrades and broader investment in tourism services. With Khareef tourism now a centrepiece of Dhofar's economic strategy, the governorate is on track to solidify its standing as a premier destination in the Arabian Peninsula. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
