The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, announced a $100m investment as part of a consortium of international and regional banks to finance the construction of Oman’s Duqm Refinery.
Situated within the Duqm Special Economic Zone 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 $100m to the financing of the refinery, $50m sharia compliant, and $50m conventional tranche. This is a demonstration of APICORP’s commitment to Oman with over $380m currently committed to the energy sector in the country.
The announcement continues APICORP’s collaboration with Kuwait, a 17% shareholder in APICORP, with a continued partnership in the financing of foreign investments in petrochemical projects such as MEGlobal in Canada and the Netherlands, and for Equipolymers in Switzerland, as well as the Nghi Son refinery and petrochemical plant in Vietnam.
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 $5.75b 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 LPG.