OQ and KPI sign development agreement for petrochemicals project in Oman

DUQM, February 3, 2026 – OQ and Kuwait Petroleum International (KPI) have signed a new project development agreement for their joint petrochemicals complex in the Special Economic Zone at Duqm (SEZAD), the companies announced on Monday.

The agreement, signed at the Kuwait Oil & Gas Show 2026, reinforces both sides’ commitment to the Oman Petrochemical Project. Technical teams are currently working on optimised configurations, while talks continue with potential partners to enhance the project’s global competitiveness.

“OQ and KPI have both the capability and resources to drive the project forward successfully. We are engaging with potential partners who share our vision of establishing Duqm as a premier global petrochemical hub,” said Ashraf Hamed Al Mamari, Group CEO of OQ.

“The Oman Petrochemical Project represents a pillar of Kuwait’s downstream growth strategy and reflects our enduring partnership with Oman,” added Shafi Taleb Al Ajmi, CEO of KPI.

The project aligns with Oman Vision 2040 and is expected to play a key role in the country’s economic diversification. SEZAD site benefits from strategic infrastructure, feedstock availability and regional and international interest.

OQ is the umbrella organisation that manages Oman’s energy investments and is active in upstream oil and gas, refining, petrochemicals, renewables and energy trading. In Duqm, it leads the development of downstream and industrial assets to support national diversification goals.

KPI is the global downstream arm of Kuwait Petroleum Corporation. Trading under the name Q8, it is a joint-venture partner in the OQ8 (Duqm) refinery in Oman, the Milazzo refinery in Italy and the Nghi Son refinery in Vietnam.

Photo courtesy of OQ

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