Duqm: The Duqm Refinery and Petrochemical Industries Company (OQ8), a strategic partnership between OQ in Oman and Kuwait Petroleum International (KPI), has successfully passed the Lenders Reliability Test (LRT), marking a significant milestone in its operational development.
This accomplishment meets all lender criteria and establishes the Actual Completion Date (ACD), thereby releasing approximately $4 billion in shareholder guarantees.
The successful execution of the LRT, a stringent performance evaluation required by project financiers, confirms the refinery's capability to function at or above its specified capacity, efficiency, and reliability standards over an extended duration. With the ACD now confirmed, OQ8 has fulfilled its contractual commitments and is smoothly transitioning into stable commercial operations.
David Bird, CEO of OQ8, emphasized the importance of this achievement: "The successful completion of the Lenders Reliability Test and the establishment of our Actual Completion Date represent a crucial milestone in OQ8’s journey. This validates our operational excellence and highlights the strength of our joint venture and the confidence of our stakeholders. As we move into a new growth phase, we aim to harness this momentum to create long-term value, advance strategic initiatives, and enhance Oman’s position as a prominent energy hub in the global market."
OQ8 has quickly ramped up its operations, achieving 110% of its designed capacity and boosting production from 230,000 to 255,000 barrels per day. In just 10 months following mechanical completion, the refinery has successfully moved to full-scale operations, demonstrating its efficiency and reliability.
As we progress, our primary objective is to enhance financial performance while ensuring robust governance. We are grateful for the ongoing trust and support from our lenders, shareholders, and partners, who have been instrumental in our journey, stated Mubarak Al Naamani, Chief Financial and Commercial Officer at OQ8.
This highlights the strong collaboration between OQ and KPI, solidifying OQ8’s transformation into a prominent regional energy entity. With complete operational stability, the company is strategically positioned to pursue new growth avenues, further supporting Oman’s energy sector and contributing to long-term economic advancement in alignment with Oman Vision 2040.
In this context, Azzan Al Abdullatif, Chief Portfolio Officer at OQ, remarked: “Our collaboration with Kuwait Petroleum International exemplifies the strength of regional partnerships and emphasizes Oman’s increasing strategic significance as a global energy hub. Successfully passing the lenders’ reliability assessment confirms the project’s vital role in the region’s energy framework and highlights the company’s dedication to fostering strategic growth and achieving outstanding results.”
Eng. Shafi Taleb Al Ajmi, President and CEO of Kuwait Petroleum International, commented, "Reaching the ACD is a definitive indication of our operational readiness and technical expertise, positioning OQ8 among the world’s most advanced refineries. This achievement bolsters our confidence in OQ8’s growth prospects and our commitment to exploring innovative opportunities within the refining sector."
As the first merchant refinery in the Middle East, OQ8 showcases exceptional adaptability, processing a wide variety of crude and feedstocks—including Basra Heavy and West African crude—to enhance sourcing flexibility and optimize production. With a consistent operational rate of 100% throughout 2024, the refinery has successfully exported over 4.1 million tons of refined products worldwide. Furthermore, its sophisticated feedstock strategies have decreased dependence on shareholder crude, enhancing commercial agility and profitability.
In addition to its focus on operational excellence, OQ8 prioritizes innovation and sustainability by utilizing advanced technology to improve efficiency and reduce environmental impact. The refinery is instrumental in promoting national sustainability objectives, making substantial contributions to Oman’s economic and social progress. Since 2018, the company has allocated more than $2 billion to local suppliers and invested $5.4 million in social programs, underscoring its dedication to fostering long-term national development and prosperity.
