Latest news with #DuqmRefinery
Zawya
4 days ago
- Business
- Zawya
Oman's LPG production hits record 1.353mln tonnes in 2024
MUSCAT: Production of Liquefied Petroleum Gas (LPG) — a vital fuel source for both households and industries — surged by nearly 37 per cent to reach 1.353 million metric tonnes in 2024, up from around 990,000 metric tonnes a year earlier, marking a new record for the Sultanate of Oman. LPG — a byproduct of natural gas processing and crude oil refining — is primarily used in homes for cooking and heating. It is also increasingly employed in commercial and industrial sectors, including catering, laundry services, metal cutting, drying, and machinery operation. Thanks to its low emissions and ease of transport and storage, LPG is also used as an automotive fuel in many export markets. A key contributor to the sharp increase in production was the Duqm Refinery (OQ8), which accounted for 287,000 metric tonnes, or 21 per cent of the total. This represented the first full year of operations for the Omani-Kuwaiti-backed refinery, which began operating at full capacity early last year. The largest contributor, however, was the Sohar Refinery (owned by OQ Refineries and Petroleum Industries Company – OQ RPI), with an output of 611,000 metric tonnes, representing a 45 per cent share. Next was the Salalah LPG plant, also operated by OQ RPI, with 315,000 metric tonnes (23.3 per cent), while the company's Mina Al Fahal refinery contributed 63,000 metric tonnes, equivalent to a 5 per cent share. Production from Daleel Petroleum's Wadi Aswad field totaled 51,000 metric tonnes, accounting for 3.8 per cent of the total. Smaller volumes were also recorded from Petroleum Development Oman's (PDO) Saih Rawl facilities, which produced around 20,000 metric tonnes (1.5 per cent), and from the Bukha and West Bukha fields operated by Musandam Oil & Gas Company, which yielded approximately 5,000 metric tonnes (0.4 per cent). 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. ( CONRAD PRABHU
Observer
5 days ago
- Business
- Observer
Oman's LPG production hits record 1.353 million tonnes in 2024
MUSCAT: Production of Liquefied Petroleum Gas (LPG) — a vital fuel source for both households and industries — surged by nearly 37 per cent to reach 1.353 million metric tonnes in 2024, up from around 990,000 metric tonnes a year earlier, marking a new record for the Sultanate of Oman. LPG — a byproduct of natural gas processing and crude oil refining — is primarily used in homes for cooking and heating. It is also increasingly employed in commercial and industrial sectors, including catering, laundry services, metal cutting, drying, and machinery operation. Thanks to its low emissions and ease of transport and storage, LPG is also used as an automotive fuel in many export markets. A key contributor to the sharp increase in production was the Duqm Refinery (OQ8), which accounted for 287,000 metric tonnes, or 21 per cent of the total. This represented the first full year of operations for the Omani-Kuwaiti-backed refinery, which began operating at full capacity early last year. The largest contributor, however, was the Sohar Refinery (owned by OQ Refineries and Petroleum Industries Company – OQ RPI), with an output of 611,000 metric tonnes, representing a 45 per cent share. Next was the Salalah LPG plant, also operated by OQ RPI, with 315,000 metric tonnes (23.3 per cent), while the company's Mina Al Fahal refinery contributed 63,000 metric tonnes, equivalent to a 5 per cent share. Production from Daleel Petroleum's Wadi Aswad field totaled 51,000 metric tonnes, accounting for 3.8 per cent of the total. Smaller volumes were also recorded from Petroleum Development Oman's (PDO) Saih Rawl facilities, which produced around 20,000 metric tonnes (1.5 per cent), and from the Bukha and West Bukha fields operated by Musandam Oil & Gas Company, which yielded approximately 5,000 metric tonnes (0.4 per cent).
Zawya
03-07-2025
- Business
- Zawya
Oman wealth fund OIA's assets jump to $53bln in 2024; profit falls by 7.81%
The Oman Investment Authority (OIA) reported a rise in total assets to $53 billion in 2024, up from $49.89 billion recorded in 2023. However, the wealth fund posted a 7.81% decline in annual profit, which fell to $4.12 billion from $4.416 billion the previous year. OIA transferred $2.1 billion to the state budget last year, marginally higher than the $2.08 billion contributed in 2023. Last year, OIA investments were distributed across more than 50 countries, with Oman accounting for the largest share at 61.3%, followed by North America at 19.9%, while the remaining portion was allocated across Europe, Asia, Africa, and Latin America. In terms of local sectors, OIA allocated its investments across various sectors, which the energy accounts for 68%, tourism and real estate for 9%, services and logistics for 8% each. 'In 2024, there was a notable increase in foreign investment inflows into local sectors, with committed foreign direct investment (FDI) reaching approximately OMR 2.8 billion by the end of the year through projects under the National Development Fund (NDF),' Sultan Al Habsi, Oman's Minister of Finance and Chairman of OIA's Board of Directors said in its annual report. Energy dominated at 68% of commitments, including additional funding for Duqm Refinery and launching the 500 MW solar plants. The rest targeted logistics, tourism, mining, and telecoms, with capital allocated to Asyad Container Terminal and reopening copper mines. OIA said its portfolio companies repaid $4.7 billion in debt, including a prepayment of $1.4 billion repayment by state energy group OQ. Sovereign guarantees fell to $4.7 billion, nearly half 2023 levels. Six assets were divested, one more than planned, raising fresh capital and broadening local equity participation. The flagship exit was a 25% IPO of OQ Exploration & Production. Amidst growing energy volatility and geopolitical risk, OIA said it plans to scale renewables, digital infrastructure, and critical minerals, while trimming hydrocarbons and divesting non-core assets. (Writing by Bindu Rai, editing by Seban Scaria)
Zawya
01-07-2025
- Business
- Zawya
GCC economic integration through connectivity
The Special Economic Zone at Duqm (SEZAD), spanning 2,000 square kilometres, is the largest of its kind in the MENA region. Oman stands at a pivotal crossroads, where global energy dynamics, regional instability, and long-term economic aspirations intersect. As geopolitical risks in the Strait of Hormuz amplify uncertainties, Oman emerges not only as a neutral mediator but also as a proactive architect of future-ready economic solutions—anchored by Duqm's development and strengthened by Vision 2040. The Strait of Hormuz remains a critical artery for global energy, with over 20% of the world's petroleum and one-fifth of global LNG transiting its waters. While recent diplomatic efforts have helped to ease tensions, the vulnerabilities of this chokepoint persist. Oman's strategic response is Duqm—a secure and stable alternative that mitigates geopolitical risk while ensuring efficient, uninterrupted energy and trade flows. Duqm's location outside the Strait of Hormuz is more than strategic—it is economically transformative. It shortens shipping times by up to three days, significantly reduces freight and insurance costs, and shields trade routes from geopolitical tensions. These features provide Oman and its partners with a dependable, cost-effective trade gateway via the Arabian Sea. The Special Economic Zone at Duqm (SEZAD), spanning 2,000 square kilometres, is the largest of its kind in the MENA region. It is home to the 230,000 bpd Duqm Refinery and the Ras Markaz Oil Terminal, with a storage capacity of 26 million barrels. These facilities position Duqm as a vital energy hub, supporting both conventional and clean energy ambitions. Connectivity is at the heart of Oman's national strategy. Modern highways, upgraded airports, and a planned regional railway will further integrate Duqm into regional and global logistics networks. These efforts aim to establish a seamless, multimodal economic corridor linking Oman with its GCC neighbours and beyond. This is the time for GCC-wide cooperation. Oman cannot shoulder the burden alone. Shared infrastructure—such as road corridors, pipelines, and port linkages—must be a collective effort among GCC members. Collaboration with Saudi Arabia, the UAE, Qatar, and Kuwait is essential to building resilient economic corridors that bolster regional energy security and trade diversification. Oman's policy of neutrality and balanced diplomacy reinforces its role as a trusted regional partner. This credibility attracts investment, reduces perceived risks, and enables Oman to engage constructively with all stakeholders. Partnerships such as the Duqm Refinery with Kuwait, road connectivity with Saudi Arabia and the UAE, and discussions around regional rail demonstrate the viability of cross-border collaboration. The Special Economic Zone at Duqm (SEZAD), spanning 2,000 square kilometres, is the largest of its kind in the MENA region. From a diplomatic and economic standpoint, Oman's neutrality remains one of its most powerful strategic assets. This stance uniquely facilitates consensus-building among diverse regional actors, fostering an environment conducive to investment and significantly lowering the perceived risk premium for major long-term infrastructure projects. This role is particularly important for neighbouring Gulf nations like Saudi Arabia, Qatar, and the UAE, which are actively seeking diversified export routes and secure logistics solutions amidst evolving regional dynamics. For instance, Qatar's ambitious LNG expansion could significantly benefit from Duqm's strategic redundancy in storage and export, enhancing market access and reliability. Likewise, Oman's transparent collaboration with the UAE and Saudi Arabia on critical energy and logistics initiatives directly supports the ambitious goals outlined in Saudi Vision 2030 and the UAE's Energy Strategy 2050. Collaborative projects such as the strategic Ibri-Duqm road connecting Oman, Saudi Arabia, and the UAE, along with future railway initiatives, are designed to create seamless economic corridors for mutual benefit. The successful partnership in the Duqm Refinery with Kuwait exemplifies Oman's capacity for effective cross-border industrial integration. For major energy-importing nations in Asia and Europe, Oman offers a dual advantage: stable, secure delivery points for conventional energy, and promising new partnerships in the clean energy sector—especially as Oman scales up its green hydrogen exports. Duqm, in particular, presents highly attractive investor incentives, including 100% foreign ownership, multi-year tax exemptions, and robust regulatory support that streamlines business operations. These conditions create an exceptionally welcoming landscape for global investors and sustainable private sector growth. These comprehensive strategic efforts are intricately aligned with Vision 2040—Oman's overarching national blueprint for economic diversification and long-term sustainability. The Vision aims to significantly increase non-oil GDP, attract private investment, and foster innovation-led growth across multiple sectors. The role of the private sector in this transformation is not only encouraged but considered essential. Oman is actively nurturing a vibrant local SME ecosystem, integrating it into industrial supply chains within the Special Economic Zone. Oman's developmental path is uniquely defined by pragmatism, strategic foresight, and a firm commitment to inclusive growth. By reducing regional dependencies, embracing clean energy, and promoting integrated logistics, Oman is crafting a sustainable development model that offers valuable lessons for the world. Under the visionary leadership of His Majesty Sultan Haitham bin Tarik, Oman is not merely responding to today's challenges—it is shaping solutions for the future. In a world seeking certainty and innovation, Oman stands ready. The message to global partners is clear: Oman is a gateway to the future, and Duqm is open for business. The time to engage is now. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
30-06-2025
- Business
- Observer
GCC economic integration through connectivity
Oman stands at a pivotal crossroads, where global energy dynamics, regional instability, and long-term economic aspirations intersect. As geopolitical risks in the Strait of Hormuz amplify uncertainties, Oman emerges not only as a neutral mediator but also as a proactive architect of future-ready economic solutions—anchored by Duqm's development and strengthened by Vision 2040. The Strait of Hormuz remains a critical artery for global energy, with over 20% of the world's petroleum and one-fifth of global LNG transiting its waters. While recent diplomatic efforts have helped to ease tensions, the vulnerabilities of this chokepoint persist. Oman's strategic response is Duqm—a secure and stable alternative that mitigates geopolitical risk while ensuring efficient, uninterrupted energy and trade flows. Duqm's location outside the Strait of Hormuz is more than strategic—it is economically transformative. It shortens shipping times by up to three days, significantly reduces freight and insurance costs, and shields trade routes from geopolitical tensions. These features provide Oman and its partners with a dependable, cost-effective trade gateway via the Arabian Sea. The Special Economic Zone at Duqm (SEZAD), spanning 2,000 square kilometres, is the largest of its kind in the MENA region. It is home to the 230,000 bpd Duqm Refinery and the Ras Markaz Oil Terminal, with a storage capacity of 26 million barrels. These facilities position Duqm as a vital energy hub, supporting both conventional and clean energy ambitions. Connectivity is at the heart of Oman's national strategy. Modern highways, upgraded airports, and a planned regional railway will further integrate Duqm into regional and global logistics networks. These efforts aim to establish a seamless, multimodal economic corridor linking Oman with its GCC neighbours and beyond. This is the time for GCC-wide cooperation. Oman cannot shoulder the burden alone. Shared infrastructure—such as road corridors, pipelines, and port linkages—must be a collective effort among GCC members. Collaboration with Saudi Arabia, the UAE, Qatar, and Kuwait is essential to building resilient economic corridors that bolster regional energy security and trade diversification. Oman's policy of neutrality and balanced diplomacy reinforces its role as a trusted regional partner. This credibility attracts investment, reduces perceived risks, and enables Oman to engage constructively with all stakeholders. Partnerships such as the Duqm Refinery with Kuwait, road connectivity with Saudi Arabia and the UAE, and discussions around regional rail demonstrate the viability of cross-border collaboration. The Special Economic Zone at Duqm (SEZAD), spanning 2,000 square kilometres, is the largest of its kind in the MENA region. From a diplomatic and economic standpoint, Oman's neutrality remains one of its most powerful strategic assets. This stance uniquely facilitates consensus-building among diverse regional actors, fostering an environment conducive to investment and significantly lowering the perceived risk premium for major long-term infrastructure projects. This role is particularly important for neighbouring Gulf nations like Saudi Arabia, Qatar, and the UAE, which are actively seeking diversified export routes and secure logistics solutions amidst evolving regional dynamics. For instance, Qatar's ambitious LNG expansion could significantly benefit from Duqm's strategic redundancy in storage and export, enhancing market access and reliability. Likewise, Oman's transparent collaboration with the UAE and Saudi Arabia on critical energy and logistics initiatives directly supports the ambitious goals outlined in Saudi Vision 2030 and the UAE's Energy Strategy 2050. Collaborative projects such as the strategic Ibri-Duqm road connecting Oman, Saudi Arabia, and the UAE, along with future railway initiatives, are designed to create seamless economic corridors for mutual benefit. The successful partnership in the Duqm Refinery with Kuwait exemplifies Oman's capacity for effective cross-border industrial integration. For major energy-importing nations in Asia and Europe, Oman offers a dual advantage: stable, secure delivery points for conventional energy, and promising new partnerships in the clean energy sector—especially as Oman scales up its green hydrogen exports. Duqm, in particular, presents highly attractive investor incentives, including 100% foreign ownership, multi-year tax exemptions, and robust regulatory support that streamlines business operations. These conditions create an exceptionally welcoming landscape for global investors and sustainable private sector growth. These comprehensive strategic efforts are intricately aligned with Vision 2040—Oman's overarching national blueprint for economic diversification and long-term sustainability. The Vision aims to significantly increase non-oil GDP, attract private investment, and foster innovation-led growth across multiple sectors. The role of the private sector in this transformation is not only encouraged but considered essential. Oman is actively nurturing a vibrant local SME ecosystem, integrating it into industrial supply chains within the Special Economic Zone. Oman's developmental path is uniquely defined by pragmatism, strategic foresight, and a firm commitment to inclusive growth. By reducing regional dependencies, embracing clean energy, and promoting integrated logistics, Oman is crafting a sustainable development model that offers valuable lessons for the world. Under the visionary leadership of His Majesty Sultan Haitham bin Tarik, Oman is not merely responding to today's challenges—it is shaping solutions for the future. In a world seeking certainty and innovation, Oman stands ready. The message to global partners is clear: Oman is a gateway to the future, and Duqm is open for business. The time to engage is now.
