The Duqm Refinery and Petrochemical Industries Company has awarded Italian oil and gas industry contractor Saipem a US$750m engineering, procurement, construction (EPC) contract for the development of the Duqm refinery in the Al-Wusta Governorate of Oman. Once completed in 2021, the US$7bn refinery is expected to have a capacity of 230,000 bbl/d. The crude oil will be sourced mostly from Kuwait, with Kuwait Oil expected to provide at least 65% of the refinery supplies.
Duqm Refinery and Petrochemical Industries Company is a Joint Venture (JV) between the Oman Oil Company (OOC) and Kuwait Petroleum International (KPI). The project will be 35% equity financed by both partners while the remainder will be supported through debt from local and international banks. KPI is Kuwait Petroleum Corporation's international subsidiary, while OOC is in charge of investments in energy related sectors for the Sultanate of Oman.