Duqm Refinery gets $100mn financing

Business Sunday 23/December/2018 14:52 PM
By: Times News Service
Duqm Refinery gets $100mn financing

Muscat: The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank, has announced a US$100 million investment as part of a consortium of international and regional banks to finance the construction of Oman’s Duqm Refinery.
Situated within the Special Economic Zone Duqm (SEZD), the refinery is a joint venture between Kuwait Petroleum International and Oman Oil Company. Duqm Refinery is a milestone project, which will contribute to the transformation of Oman’s economy.
Apicorp contributed $100 million to the financing of the refinery, $50 million sharia-compliant, and $50 million conventional tranche. This is a demonstration of Apicorp’s commitment to Oman, with over $380 million currently committed to the energy sector in the country.
Sunday’s announcement continues Apicorp’s collaboration with Kuwait, a 17 per cent shareholder in Apicorp, with a continued partnership in the financing of foreign investments in petrochemical projects such as ME Global in Canada and the Netherlands, and for Equipolymers in Switzerland, as well as the Nghi Son refinery and petrochemical plant in Vietnam.
“We are delighted to be working with Kuwait Petroleum International and Oman Oil Company on this prestigious project—Duqm Refinery. As the Arab energy sector's most trusted financial partner, we look forward to further strengthening our existing partnerships with the governments of Kuwait and Oman," Dr Ahmed Ali Attiga, Chief Executive Officer of Apicorp, said.
"Once operational, the refinery will play a significant role in boosting Oman’s exports and will be a key driver for the growth of the region, providing investment opportunities for new related projects,” he added.
“We are pleased to be working with Apicorp on Duqm Refinery. This reflects the trust and confidence of local, regional and international financial institutions in our economic ties that are deeply rooted in history," Nabil Bourisli, President of Kuwait Petroleum International and Chairman of Duqm Refinery, said.
"Our vision is aimed at maximising the value of our natural resources and driving the two countries towards expanding their economic potential, leading to balanced economic growth,” he added.
Duqm Refinery is based in Al Duqm in the South East Al Wusta Governorate of the Sultanate of Oman. A strategic maritime location providing immediate access to international shipping lanes in both the Indian Ocean and the Arabian Sea helps the process of transport in and out of the region and gives the project a significant competitive advantage. Duqm Refinery recently celebrated the laying of the foundation stone and the commencement of the $5.75 billion construction work for the project. Once the refinery is completed, it will have the capacity to process around 230,000 barrels of crude oil per day. Its primary products will be diesel, jet fuel, naphtha and liquefied petroleum gas.