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Oman's Duqm Refinery closes Record $4.6bn Deal

Duqm Refinery has secured the largest project finance agreement in Oman's history after clinching a $4.6bn (OMR1.7bn) funding deal for the under-construction megaproject.Oman Oil Company and Kuwait Petroleum International, two leading regional energy groups, have announced the signing of a $4.61 billion multi-source project financing deal for the development of a 230,000 barrels per day refinery project in the Duqm region of the sultanate.According to a report in the Times of Muscat and Oman, the Duqm refinery Project includes the event, construction, and operation of the refinery, on-site utilities, infrastructure, and storage facilities. this can conjointly include the development of offsite facilities, together with crude tank storage facilities in Raz Markaz, an 80-km crude oil pipeline to the refinery and a product export terminal at the Port of Duqm.The report added that the refinery is meant to be able to process a range of homogenized crude oils and is designed as a full-conversion hydrocracker/coking facility, which can utilize advanced technology that's commercially well-tried for the scale of the project. This technology has been equipped by leading technology licensors, it added.The Duqm refinery Project can have the biggest project funding within the state, with funding provided by 29 financial institutions from 13 countries, whereas insurance and guarantees (cover) is provided by 3 major credit Agencies. The engineering, acquisition, and construction of the project are being beneath taken under 3 lumpsum jailor contracts, with first contractors operational on them, the report said.The project includes of a global business facility, an onshore business and a Muslim facility besides a UK (UKEF)-covered, a Spanish (CESCE)-covered, a South Korean (K-EXIM) lined facilities together with a K-EXIM direct facility, aforementioned the report.Built as a joint venture between Kuwait Petroleum International and therefore the Muscat and Oman company is found within the Special Economic Zone in Duqm (SEZAD) along the south-east coast of the sultanate.The Duqm project, that is of strategic importance and a priority national investment for Muscat and Oman, is additionally the primary in different aspects.It is the primary major cross-border refinery project within the middle east region and is additionally the primary venture of a refinery project within the region between government-owned oil firms of 2 middle east countries aforementioned the report.In addition, it's the primary refinery within the middle east to method crude from another geographic area country on a long-run contractual basis, it added.