OQ, SABIC and Kuwait Petroleum International (KPI) have signed a Project Development Agreement of a jointly owned petrochemical complex in the Special Economic Zone at Duqm (SEZAD), the Sultanate of Oman.
The three companies aim to establish a petrochemical complex consisting of a steam cracker and derivative units and a natural gas liquid (NGL) extraction facility. They will conduct the necessary studies and collaborate using their wealth of technical and commercial experience to develop the project with unique attributes that make it globally competitive and profitable for all three partners.
The agreement was signed by Talal Hamid Al Awfi – OQ Group CEO, Abdulrahman SalehAl Fageeh – CEO (A) of SABIC, and Shafi Taleb Al Ajmi – CEO of KPI.
Commenting on this agreement, Talal Al Awfi, said, “OQ is proud of this historic agreement with our partners SABIC and KPI. The agreement is a significant milestone reached between the partners and comes at an important time in Oman with the near completion of the OQ8 refinery project in SEZAD being undertaken by OQ and KPI through the OQ8 joint venture. This agreement also comes in line with Oman Investment Authority (OIA) plans to attract foreign investments to support realize Oman’s vision 2040 in its endeavour to diversify Oman’s economy”.
Abdulrahman Al-Fageeh, SABIC CEO (A), said, “SABIC’s collaborative approach has built longstanding relationships of collaboration, delivered innovative solutions and created mutual value for more than 45 years. This agreement enables us to identify and assess opportunity for ambitious and sustainable growth by bringing together our capabilities, expertise and technologies and work collectively with our partners. Our involvement in this well positioned project is consistent with our growth strategy and Saudi Vision 2030 goals to develop a stronger downstream business addressing challenges in petrochemicals industry such as carbon neutrality and providing diversified and sustainable products.”
KPI’s President and Chief Executive Officer, Shafi Taleb Al Ajmi commented, “We are pleased to work side by side with OQ and SABIC on this pioneering project in Oman, because working with our regional partners supports KPC’s 2040 strategy for growth in the petrochemical industry and enhances integration between the refining and petrochemical sectors. The project also supports the economic growth and development of the Special Economic Zone at Duqm (SEZAD).”
Petrochemicals’ demand is expected to continue its growth path as living standards and human development improve, particularly in growing markets close to Oman. The project intends to monetise Natural Gas Liquids and other feedstocks from OQ and KPI’s joint venture refinery, OQ8 in Duqm, to manufacture petrochemical products targeting growing markets linked to energy transition, clean technologies, mobility, construction, durable goods, healthcare and packaging amongst others.
The project intends to deploy state-of-the-art technologies to minimise carbon footprint and incorporate circular economy aspects and commit to high environmental standards. This mega project would support the region’s development aspirations, maximizing socio-economic impacts as well as value addition to these companies. In addition, the project would also benefit from the excellent location of Duqm being close to markets and taking advantage of the infrastructure which has been developed in the area, as OQ continues in its strategy to help develop SEZAD as manufacturing and logistics hub in line with vision 2040.
