The Duqm refinery project secured multi-source project financing of $4.61 billion, making it the largest project financing in the Sultanate of Oman.
The 230,000 barrel per day refinery project is a joint venture between Kuwait Petroleum International and the Oman Oil Company. Located at the special economic zone in Duqm along the south east coast of the country, the project comprises the development, construction and operation o f the refinery, on-site utilities, infrastructure and storage, together with offsite facilities including crude tank storage facilities in Ras Markaz, an 80km crude oil pipeline to the refinery and a product export terminal at the Port of Duqm.
The facilities comprise an international commercial facility, an onshore commercial facility, an Islamic facility, a United Kingdom covered facility, a Spain covered facility, a South Korea covered facility, and a K-EXIM direct facility.
Project chief financial officer Mubarak Al Naamany says: ‘The $4.61 billion multi-sourced financing signed for the project is not only the largest project financing in the Sultanate of Oman, it also includes the largest shariah-compliant facility to a green field project in Oman provided by a consortium of Islamic financing institutions.
‘These facilities provided by 29 institutions from 13 countries and insurance and guarantees provided by three major export credit agencies, is a testament of the confidence placed by international, regional and local lenders on the Sultanate of Oman, the shareholders and the project.’
The refinery is designed to be able to process a range of blended crude oils and is configured as a full-conversion hydrocracker/coking facility, which will utilise advanced technology, commercially proven at the scale of the project, supplied by leading technology licensors. Formal notice to proceed with three lump sum turn-key contracts with world class contractors was issued to them in June 2018.