International Petroleum Investment Company (IPIC), owned by the Government of Abu Dhabi, and Oman Oil Company (OOC), have established a joint venture company to own and develop a refinery and petrochemical complex in Oman.
Each firm will have a 50% interest in the joint venture company, Duqm Refinery and Petrochemical Industries, and are expected to secure debt finance for the $6bn in the refinery, which will be located in the southern industrial port district of Duqm, reports the Oman Observer.
The refinery, which constitutes the first phase of the project, will produce 230,000 barrels of oil per day and is slated for completion by 2017. The second phase of the project will include the development of a petrochemical complex.
The Ministry of Oil and Gas undersecretary and Oman Oil Company chairman H.E. Nasser bin Khamis Al Jashmi said the development of the refinery and petrochemical complex is considered to be an important investment project.
"It will play a vital role in supporting the oil and petrochemical industries in Oman due to the strategic location of the Duqm area, adjacent to one of the world's key shipping trade routes," he added.
The project was originally planned to begin at the end of 2006, but has been delayed due to cost escalation. Consequently, land has already been reserved by the Duqm Special Economic Zone Authority.