Kuwaiti firm closes Oman refinery deal
KUWAIT CITY, January 15, 2018 – Kuwait Petroleum International (KPI) has completed its purchase of a 50% stake in Oman’s Duqm refinery, local media reported on Sunday.
On April 10, 2017, documents finalising the 50/50 joint venture agreement between KPI and Oman Oil Company had been completed. At the ceremony, KPI CEO Bakheet Shabib Al Rashidi said talks on securing financing were already underway. The tie-up hopes to obtain some USD 5 billion of the projected USD 7 billion the project will cost.
The deal’s financial close had been anticipated for the end of 2017.
The Duqm refinery is slated to process around 230,000 bpd. Its primary products will include diesel, jet fuel, naphtha and LPG. The bulk of crude feedstock for the refinery, 65%, will be supplied by Kuwait, with Oman contributing the rest.