Page 4 - DMEA Week 49 2021

DMEA COMMENTARY DMEA

Oman targets mid-, downstream

amid flurry of MoUs

Muscat is making progress with efforts to become a regional and global hub
for refined product trade, leveraging its position on important trade routes.

MIDDLE EAST STRATEGICALLY located outside the Strait of Saudi Aramco’s trading arm agreed with OQ to
Hormuz, Oman has long sought to leverage its explore the potential for providing feedstock for
position to diversify its economy. At the heart of the unit and the petchem complex and store oil
WHAT: these ambitions is the former fishing village of at a new facility nearby.
Oman and Saudi Arabia Duqm where a major new downstream hub is The non-binding deal will see Aramco Trad-
have signed a raft of being developed to mainly target export markets. ing Co. (ATC) and the Omani firm “collaborate
deals focusing mainly on With just over a year until the completion directly or through their affiliates on exploring
energy as the pair seek of key facilities there, Muscat is readying for business prospects in the Omani port of Duqm
to make the most of trade an economic boost and lining up international and nearby crude oil storage terminal of Ras
flows. partners. Markaz,” according to OQ.
This week, companies from Oman and Saudi “The parties will undertake a joint review
WHY: Arabia signed a raft of agreements during a visit of ATC supplying feedstock to Duqm Refinery
The Duqm Refinery is by Saudi Crown Prince Mohammed bin Salman & Petrochemicals Industries Company LLC
around 87% complete (MbS) as part of an ongoing tour of Gulf states. (OQ8), as well as possible offtake of oil products
and will process 230,000 The Saudi Press Agency (SPA) announced by ATC from OQ8,” the 50:50 joint venture (JV)
bpd when operational. that a total of 13 memoranda of understanding between OQ and Kuwait Petroleum Interna-
(MoUs) worth $30bn had been signed between tional that is developing the Duqm refinery.
WHAT NEXT: Saudi firms and Omani companies owned by the OQ8’s head of project management at Duqm
Down the coast, a Sultanate’s investment authority and the private Yousuf Al-Jahdhami recently told Oman News
storage terminal at sector covering energy, pharmaceuticals and Agency that after around three years of works,
Ras Markaz will launch mining. the $8bn facility has reached 87% completion.
next year, increasing While broad in hydrogen, renewables and OQ noted that the MoU may yet be expanded
Oman’s credentials as a petrochemicals MoUs were announced between to include renewables, waste and green ammo-
midstream player. Oman’s state oil firm OQ, Saudi’s ACWA Power nia and hydrogen as efforts to grow the nascent
and Air Products, more specific agreements sector ride a wave of state backing. At present,
were signed that focus on the Special Economic the Duqm refinery will receive 65% of its feed-
Zone at Duqm (SEZAD). stock from Kuwait, with the remainder sourced
locally.
Duqm development For Aramco, the potential tie-up would pro-
With the 230,000 barrel per day (bpd) refinery vide a new regional outlet for Saudi Arabian oil.
expected to come into operation in early 2023, While it continues to work on expanding oil

P4 www. NEWSBASE .com Week 49 09•December•2021