New oil refinery to be built in Duqm, Oman

Project will more than double Oman's refining capacity by 2019

Duqm is undergoing rapid expansion.
Duqm is undergoing rapid expansion.

Oman plans to more than double the output of its refineries by 2019 by upgrading its plants and building a new one.

The move is expected to increase the country’s refining capacity by 312,000 bbl/day by 2019, enabling the country to boost exports and compete with OPEC countries for a larger chunk of the global market.

Oman is not a member of the OPEC agreement, and its two current refineries produce 222,000 bbl/day. Much of that is absorbed by Asia, while China buys in a lot of medium sour crude called Oman blend.

Oman plans to expand its state-owned Sohar plant to boost refining capacity by 70%. Once completed, the plant will be able to process heavier crude oil for export.

The new refinery will be built in Duqm and will have the capacity to refine 230,000 bbl/day. The project is a joint venture between Oman Oil Co and the International Petroleum Investment Co (IPIC) of Abu Dhabi. The plant is expected to be operational by 2019.



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