Definition
The Duqm Refinery is a large-scale petroleum refinery located within the Special Economic Zone at Duqm (SEZAD) on Oman central Arabian Sea coast. The refinery is a joint venture between OQ (Oman state energy company, 50 percent) and Kuwait Petroleum International (50 percent). It is designed to process 230,000 barrels per day of crude oil into refined products including diesel, jet fuel, naphtha, liquefied petroleum gas, and sulphur.
Context in Oman
Construction of the Duqm Refinery began in 2018 and the facility was commissioned in stages from 2023. It represents one of the largest single industrial investments in Oman history, with a total project cost of approximately USD 8 billion. The refinery is supplied via a 300-kilometre crude oil pipeline from Oman interior fields. Its strategic location at Duqm, outside the Strait of Hormuz chokepoint, gives it a geopolitical advantage for export security. The refinery anchors the broader Duqm petrochemical cluster, which includes planned downstream plastics and chemicals facilities that would add further value to crude oil processing.
Key Data Points
| Metric | Value |
|---|---|
| Refining capacity | 230,000 barrels per day |
| Joint venture partners | OQ (50 %), KPI (50 %) |
| Total investment | ~USD 8 billion |
| Key products | Diesel, jet fuel, naphtha, LPG |
| Location advantage | Outside Strait of Hormuz |
Vision 2040 Connection
The Duqm Refinery is a centrepiece of Vision 2040 industrial diversification strategy. By processing crude oil into higher-value refined products domestically rather than exporting raw crude, Oman captures more value from each barrel. The refinery also serves as an anchor tenant for the broader Duqm SEZ, attracting downstream industries and creating thousands of direct and indirect jobs.
Further Reading
- [[What is a Special Economic Zone]]
- [[Oman Oil Production Explained]]
- [[What is In-Country Value]]