The Duqm petrochemical complex development in Oman, which Saudi Arabia’s state-owned petrochemical company SABIC withdrew from, is reportedly being continued by Oman’s state energy company OQ and Kuwait’s state oil subsidiary KPI (Kuwait Petroleum International), which signed a new business development agreement on February 3. According to local media reports, the project cost is reportedly being discussed in the range of $8-10 billion, with negotiations for a third partner also reportedly underway in parallel.
The project is planned for Oman’s Special Economic Zone at Duqm (SEZAD), building a large petrochemical complex with a steam cracker (a unit that thermally decomposes naphtha and other feedstocks at high temperature to produce basic olefins such as ethylene) and downstream derivative units, along with natural gas liquids (NGL) extraction facilities. Originally, Oman’s OQ, Kuwait’s KPI, and Saudi Arabia’s SABIC signed a joint development agreement in late 2022, with SABIC reportedly to hold 40% and OQ and KPI 30% each. However, after SABIC decided to withdraw last December citing accumulated losses, OQ and KPI have reportedly taken over the project and are working to optimize the technology configuration. The original report does not specify a process technology licensor, suggesting this remains undetermined.
Kuwaiti outlet Al-Seyassah reportedly put the project cost at $8-10 billion, and OQ and KPI are reportedly prepared to proceed with just the two companies even without securing a third partner. Specific production capacity figures have reportedly not yet been officially finalized.