Apicorp commits $100mn to finance Duqm Refinery

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Duqm refinery
Cranes stand at a drydock facility in Oman's Duqm Special Economic Zone. The Duqm Oil Refinery won $100m in financing from Apicorp. Reuters

Oman’s Duqm Refinery has received an investment of $100m from Apicorp.

The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank, has announced a $100 million-investment as part of a consortium of international and regional banks to finance the construction of Oman’s Duqm Refinery.

Situated within the Duqm Special Economic Zone, the refinery is a joint venture between Kuwait Petroleum International and Oman Oil Company. Duqm Refinery is a milestone project which will contribute to the transformation of Oman’s economy.

Apicorp’s contribution to the refinery project includes $50 million as sharia-compliant finance, while the other $50 million is in conventional tranche.

Today’s announcement continues the Arab multilateral bank’s collaboration with Kuwait, a 17 per cent shareholder in Apicorp, with a continued partnership in the financing of foreign investments in petrochemical projects such as MEGlobal in Canada and the Netherlands, and for Equipolymers in Switzerland, as well as the Nghi Son refinery and petrochemical plant in Vietnam.

This is also a demonstration of Apicorp’s commitment to Oman with over $380 million currently committed to the energy sector in country, said a top official.

Duqm Refinery is located at Al Duqm in the South East Al Wusta Governorate of the Sultanate of Oman.

A strategic maritime location providing immediate access to international shipping lanes in both the Indian Ocean and the Arabian Sea, it helps the process of transport in and out of the region and gives the project a significant competitive advantage.

Duqm Refinery recently celebrated the laying of the foundation stone and the commencement of the $5.75 billion construction work for the project, said the statement.

Once the refinery is completed, it will have the capacity to process around 230,000 barrels of crude oil per day. Its primary products will be diesel, jet fuel, naphtha and LPG, it added.