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Duqm Refinery secures $100m construction finance from Apicorp

Jointly developed Oman-Kuwait project will generate 230,000 bpd of oil upon completion

Duqm Refinery is being jointly developed by Kuwait Petroleum International and Oman Oil Co.
© Duqm Refinery
Duqm Refinery is being jointly developed by Kuwait Petroleum International and Oman Oil Co.

Duqm Refinery, a joint venture of Kuwait Petroleum International and Oman Oil Company, has secured $100m (OMR38.5m) to fund the construction of its eponymous project in the sultanate. 

Development bank Arab Petroleum Investments Corporation (Apicorp), has delivered the funds as part of a consortium comprising international and local banks. 

Of its $100m contribution, $50m (OMR19.2m) of Apicorp’s funds are Shari’a-compliant, while the remaining half are conventional tranche. The funds are Apicorp’s latest in Oman, and add to the $380m it has already committed to the sultanate’s energy sector. 

Kuwait is a 17% shareholder in Apicorp, and has been supported by the development bank to finance international petrochemical projects such as MEGlobal in Canada and the Netherlands, and the recently commissioned Nghi Son refinery and petrochemical plant in Vietnam. 

READ: Kuwait-backed $9bn Nghi Son refinery completed in Vietnam

Located in A’Duqm within Oman’s Al Wusta Governorate, Duqm Refinery is a $7bn (OMR2.69bn) development that will generate 230,000 barrels of crude oil per day. Its primary output will include diesel, jet fuel, naphtha, and liquefied petroleum gas. 

Commenting on Apicorp’s contribution to the development, the bank’s chief executive officer, Dr Ahmed Ali Attiga, said: “We are delighted to be working with Kuwait Petroleum International and Oman Oil Company on this prestigious project.  

“As the Arab energy sector’s most trusted financial partner, we look forward to further strengthening our existing partnerships with the governments of Kuwait and Oman. Once operational, the refinery will play a significant role in boosting Oman’s exports and will be a key driver for the growth of the region providing investment opportunities for new related projects.”

President of Kuwait Petroleum International, and chairman of Duqm Refinery, Nail Bourisli, added: “[Apicorp’s investment] reflects the trust and confidence of local, regional, and international financial institutions in our economic ties that are deeply rooted in history. Our vision is aiming at maximising the value of our natural resources and driving the two countries towards expanding their economic potential, leading to balanced economic growth.”

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Construction Week - Issue 751
Oct 13, 2019