OQ8 successfully completes lenders reliability test, unlocking $4bln in shareholder guarantees
As a strategic joint venture between OQ and KPI, OQ8 continues to drive innovation and efficiency, strengthening Oman's position in the global energy sector.
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.
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