Duqm Refinery Enhances Production Capacity to 255,000 Barrels Per Day
In a significant development for Oman’s energy sector, the Duqm Refinery has successfully increased its production capacity by 10%, reaching a new output level of 255,000 barrels per day (bpd). This milestone comes approximately one year after the refinery’s inauguration and underscores its growing role in the global energy market.
Strategic Expansion and Operational Excellence
The Duqm Refinery, a $9 billion joint venture between Oman’s OQ and Kuwait Petroleum International (KPI), commenced operations in May 2023. Since then, it has achieved remarkable operational milestones, including the dispatch of its 100th export vessel and the export of over 4.1 million tons of refined products to international markets. The refinery’s strategic location along the Indian Ocean has facilitated seamless trade across key markets, enhancing its value proposition to global partners.
David Bird, CEO of OQ8, emphasized the refinery’s pivotal role in the global supply chain, stating, “Our 100th shipment reflects our strategic foresight and operational expertise.” He further highlighted the refinery’s strategic position outside the Strait of Hormuz, offering a secure and dependable route for the flow of energy and commodities. This location has been crucial in enabling seamless trade across key markets worldwide, enhancing the refinery’s proposition to global partners. Bird added, “Our commitment to being a reliable supplier of high-quality products has never been stronger, and this milestone further cements our reputation in the global market.”
Operational Milestones and Future Plans
The refinery has set new benchmarks in maritime logistics, safely managing the global supply of refined products. Notably, the terminal loaded a record-breaking 850,000 barrels of naphtha onto one of the largest vessels it has serviced, achieving a loading rate of 47,000 barrels per hour. The refinery’s adaptability is further highlighted by its ability to handle ships of all sizes, efficiently loading up to 44,000 tons of petcoke in less than 68 hours. Additionally, the terminal has smoothly facilitated large LPG shipments, up to 5,500 metric tons, and introduced night-time operations for unloading crude oil at the Ras Markaz Terminal—a significant achievement in less than a year of operation.
As OQ8 gears up for its first sulfur shipment, it continues to showcase its commitment to diversifying export products and enhancing its service offerings. Mubarak Al Naamani, Chief of Finance, Commercial, and Supply Chain Management, remarked, “This milestone is a testament to the hard work and dedication of our team.” He added, “It underscores our strategic advantage in Duqm as a crucial logistical hub, meeting the diverse needs of our international clientele and aiding Oman’s economic growth.” The refinery’s consistent delivery of projects and ability to maintain uninterrupted supply chains, even amid global uncertainties, establish it as a trusted partner in the international market.
Integration and Collaborative Efforts
OQ8 is seamlessly integrated with several OQ Group investment projects, including the Oman Tank Terminal Company (OTTCO) and OQ Trading (OQT), as well as the Kuwait Petroleum Corporation (KPC). The Ras Markaz Crude Oil Terminal, managed by OTTCO, exemplifies this integration by providing crude storage tanks from which oil is transported to the refinery via pipelines extending over 80 kilometers. David Bird highlighted the importance of these collaborations, stating, “The collaboration between OQ8 and our partners OTTCO, OQ Trading, and KPC has been pivotal to our journey and has significantly strengthened our supply chain.” He emphasized their collective commitment to excellence and reliability in the global energy market.
Inauguration and Future Prospects
The Duqm Refinery was officially inaugurated on February 7, 2024, in a ceremony attended by His Majesty Sultan Haitham bin Tariq and His Highness Sheikh Mishal Al Ahmad Al Jaber Al Sabah, Emir of the State of Kuwait. The refinery stands out not only for its operational achievements and strategic location but also as one of the world’s youngest and most efficient refineries. Operating at a capacity of 230,000 barrels per day, the refinery ensures an uninterrupted supply of high-quality products, positioning OQ8 as a trusted partner in the international supply chain. This distinctive approach has significantly contributed to the development of Duqm as a major economic zone, attracting global investors and customers.
Looking ahead, studies are underway to further increase the refinery’s production capacity by an additional 10% to 15% by 2025, potentially reaching up to 260,000 barrels per day. This planned expansion aims to meet the growing global demand for refined products and underscores the refinery’s commitment to continuous growth and adaptation in the dynamic energy sector. The collaborative efforts between Oman and Kuwait in the Duqm Refinery project exemplify a successful partnership, contributing to the economic growth and energy security of both nations.
In summary, the Duqm Refinery’s recent capacity expansion to 255,000 barrels per day marks a significant milestone in Oman’s energy landscape. Through strategic planning, operational excellence, and robust partnerships, the refinery is poised to play an increasingly vital role in the global energy supply chain, reinforcing Oman’s position as a key player in the international oil and gas industry.
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