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DMEA NEWS IN BRIEF DMEA

POLICY Trade Limited-of transferring millions of downstream subsidiary of state-owned Kuwait
dollars related to petrochemical sales to Petroleum Corporation.
US sanctions shadow China. Petrochemicals are Iran’s biggest non- enhance the country’s refining capacity by
When operational, Duqm refinery will
oil export earner.
banking network announced that it was also applying sanctions refining 230,000 barrels of crude oil products
Separately, the US Treasury on March 9
per day, which will serve demand growth
The US on March 9 announced the imposition to a China-based network it claimed was in the region and globally, as well as add
of sanctions on 39 entities, including many supporting Iran’s efforts to procure unmanned to the SEZ’s investment appeal. Kuwait has
based in the UAE and Hong Kong, that aerial vehicles (UAVs), or drones. committed to supply about 65% of the crude
Washington alleges helps provide Iran with The network “is responsible for the sale the Duqm Refinery will process, Al Sabah
access to the global financial system. and shipment of thousands of aerospace said.
The entities, said the US Treasury components, including components that As of end-November 2022, the total
Department, amounted to a “shadow can be used for UAV applications,” the completion rate of the project is 96 per cent
banking” network that moves billions of department. and its trial operation is expected to happen
dollars. Iran is known to have provided combat soon. The Duqm Refinery project is one of
Among those designated were two Turkey- drones to Russia, which Moscow has used in the major projects being implemented in the
based entities as well as Iran-based Mehr its war on Ukraine. Special Economic Zone at Duqm (SEZAD).
Petrochemical Co. BNE It serves as the starting line for the plan to
Those targeted with the sanctions had transform Duqm into one of the largest
enabled companies previously hit with industrial and economic centres in the region.
Iran-related sanctions-such as Triliance REFINING The Duqm Refinery includes 10 main
Petrochemical and Persian Gulf Petrochemical processing units capable of producing diesel,
Industry Commercial Co. (PGPICC)-to access Duqm Refinery to operate at aviation fuel, naphtha, liquefied petroleum
the international financial system and assisted gas, sulfur and petroleum coke which will help
the firms in hiding their trade with foreign full capacity by end-2023 provide high-quality oil products to customers
customers, the US Treasury added. all over the world.
“Iran cultivates complex sanctions evasion The Duqm Refinery project, the largest project ZAWYA
networks where foreign buyers, exchange in the field of refineries and petrochemicals, is
houses, and dozens of front companies expected to come into full production by the NSCDC uncovers illegal
cooperatively help sanctioned Iranian end of 2023, Kuwait Petroleum Corporation’s
companies to continue to trade,” said US deputy chairman and CEO, Nawaf al Sabah refinery near Port Harcourt
Deputy Treasury Secretary Wally Adeyemo. said at a press conference on the sidelines of
The sanctions freeze any US assets of those CERAWeek energy conference in Houston, The Nigeria Security and Civil Defence Corps
designated and generally prevent Americans Texas. (NSCDC) has uncovered an expansive illegal
from dealing with them at the risk of The refinery project, occupying 900 refining site at Otamiri-Etche, near Port
secondary sanctions. hectares, is located at the heart of the Special Harcourt.
The Treasury accused designated Economic Zone of Duqm (SEZD) and is a NSCDC Commandant in Rivers, Michael
companies based in Hong Kong-including 50-50 joint venture between state-owned Ogar took newsmen to the illegal refinery
Foraben Trading Limited, Hongkong Well Oman’s OQ Group and Kuwait Petroleum where the oil thieves refined stolen crude into
International Trading Limited and Salita International (KPI). KPI is the international various petroleum products for sale to the

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