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Sultan of Oman, Emir of Kuwait to Inaugurate $9 Bn Duqm Refinery on Wednesday

Duqm Refinery is one of the joint investment projects between Oman and Kuwait (KUNA)
Duqm Refinery is one of the joint investment projects between Oman and Kuwait (KUNA)
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Sultan of Oman, Emir of Kuwait to Inaugurate $9 Bn Duqm Refinery on Wednesday

Duqm Refinery is one of the joint investment projects between Oman and Kuwait (KUNA)
Duqm Refinery is one of the joint investment projects between Oman and Kuwait (KUNA)

Oman's Sultan Haitham bin Tariq and Kuwait Emir Sheikh Meshal al-Ahmad al-Sabah will attend the opening of Duqm Refinery and Petrochemical Industries on Wednesday.
The Duqm refinery is a $9 billion joint venture between Oman's OQ Group and Kuwait Petroleum International in Oman's Duqm Industrial Zone.
The Refinery represents a valuable addition to the global energy market by providing high-quality oil products and enhancing Oman's refining capabilities by up to about 500,000 barrels per day.
Meanwhile, Oman's Minister of Commerce, Industry, and Investment Promotion, Qais bin Mohammed al-Yousef, said in a press statement that the inauguration of the Duqm Refinery reflects the investment interest in the Sultanate.
Yousef noted that it reviews the efforts to attract investors to achieve Oman Vision 2040 goals aimed at boosting economic diversification policies and diversifying sources of income.
President of the Public Authority for Special Economic Zones and Free Zones Ali al-Sunaidy described the Duqm Refinery as a pioneering strategic project in the petroleum industries between Oman and Kuwait.
Sunaidy stated that it supports the efforts to increase the added value of the manufacturing sector and provides new investment opportunities for small and medium enterprises in Duqm.
He asserted the importance of the strategic partnership between the two brotherly countries in establishing the Duqm Refinery and its strategic location close to the Asian and African markets.
Investments in the economic, accessible, and industrial zones amounted to about $44 billion, including $10.9 billion in the Special Economic Zone in Duqm (SEZAD), which reflects the interest of local and international companies in investing in Oman, according to Sunaidy.
- Kuwaiti-Omani project
The Duqm Refinery Project is one of the fruits of close relations between the State of Kuwait and the Sultanate of Oman, as this joint project reflects the steady growth in bilateral ties between the two Gulf countries.
President of Oman Investment Authority (OIA) Abdulasalam al-Murshidi said that the Duqm Refinery in the Special Economic Zone is the most significant joint investment between the two nations in the refineries and petrochemicals sector.
It culminates the bilateral relations between Oman and Kuwait, embodies the depth of their economic ties, and links common interests to more joint investments.
Murshidi expressed his aspiration that the Duqm Refinery will open broader horizons to invest in Oman, especially in the Special Economic Zone.
He also referred to its role as a promising industrial center and enabler around which lucrative opportunities are established in the upstream and downstream industries, petrochemicals, and logistics, reflecting additional value to the SEZAD.
The CEO of the Kuwait Petroleum Corporation, Sheikh Nawaf Saud Al-Sabah, said that the Refinery is an ideal example of the convergence of economic interests between the two countries, especially since Kuwait shares a common history and heritage with Oman.
The CEO pointed out that the strategic project would enhance the prospects for future cooperation in development and economic projects that contribute to the stability of energy supplies and provide safe guarantees.
- The most crucial energy centers
The project, the foundation stone of which the two parties laid in April 2018, will transform the Duqm region into one of the most important energy centers in the area.
Occupying a 900-hectare plot of coastal land, the $8.5 billion complex is a joint venture for the Omani international energy integrated company (OQ) and Kuwait Petroleum International (Q8).
The project enjoys a strategic location overlooking the main maritime transport lines in the Arabian Sea. It will have a positive impact on the region.
Its preliminary refining capacity is estimated at 230,000 barrels of (Kuwaiti) crude oil per day. The products include diesel, aviation fuel, naphtha, and liquefied petroleum gas.
Kuwait Petroleum Corporation will secure 65 percent of the refinery's crude oil resources in line with the corporation's vision and strategy to provide safe marketing outlets for Kuwaiti oil.
The project includes three main packages. The first consists of the central processing units of the Refinery, while the second package includes facilities and services.
Meanwhile, the third package includes three sub-packages, which are storage and export facilities for liquid and bulk petroleum materials located in the port of Duqm, crude oil storage facilities in Ras Markaz, and a 90-kilometer pipeline for transportation of crude oil from Ras Markaz to Duqm Refinery.
The future vision of the project aims for the Refinery to be world-class, using proven technology and providing high-quality products following international safety standards while striving to achieve the highest operating standards.

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A Century of Partnership: How Oil Forged the US-Saudi Strategic Alliance

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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A Century of Partnership: How Oil Forged the US-Saudi Strategic Alliance

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Long before the iconic 1945 meeting between King Abdulaziz Al Saud and US President Franklin D. Roosevelt aboard the USS Quincy in Egypt’s Suez Canal, the seeds of a historic partnership had already been planted. More than a decade earlier, American oil experts had landed on Saudi soil, drawn not by diplomacy, but by geology.

Their presence in the eastern province of Saudi Arabia, on the shores of the Arabian Gulf, gave rise to a new chapter in international relations. From modest beginnings, the Saudi-American partnership evolved into one of the most significant bilateral relationships in the modern Middle East, anchored in energy cooperation, reinforced through political trust, and tested across decades of global and regional upheaval.

Oil First: The 1933 Concession Agreement

The turning point came just a year after the unification of the Kingdom of Saudi Arabia in 1932. On May 29, 1933, King Abdulaziz authorized his Minister of Finance, Abdullah Al-Sulaiman, to sign an oil exploration concession with the Standard Oil Company of California (Socal), now known as Chevron. Represented by Lloyd Hamilton, the company created a subsidiary - the California Arabian Standard Oil Company (CASOC) - to manage operations within the Kingdom.

The 60-year concession marked the beginning of a partnership that would transform both nations. After decades of exploration and expansion, the Saudi government began acquiring stakes in the company, starting with 25% in 1973, increasing to 60% in 1974, and culminating in full ownership in 1980. Eight years later, the company was renamed the Saudi Arabian Oil Company - Aramco.

American Presence in Dhahran

While American missionary efforts in the Gulf dated back to the late 19th century, particularly in Bahrain and Kuwait, Saudi Arabia remained largely untouched by these early religious and medical missions. The true bridge between the US and Saudi Arabia came through oil.

Following the 1933 agreement, American geologists and engineers arrived in the eastern city of Dhahran. Initial drilling in the mid-1930s was unsuccessful, until Socal’s chief geologist Max Steineke led an operation that resulted in the discovery of commercial oil in 1938. This breakthrough transformed the region and the bilateral relationship.

A pivotal moment in the history of Saudi Arabia - and in the global oil industry - occurred on March 4, 1938, when oil first flowed from the initial test well in Dhahran, known as Dammam Well No. 7. This event established Saudi Arabia as the country with the largest oil reserves and one of the world’s most important energy sources. The well, drilled to a depth of 1,441 meters, is located on the hill known as Jabal Dhahran and later became famously known as “Prosperity Well” (Bi’r Al-Khair).

Marking the beginning of a new era, King Abdulaziz embarked on a historic journey in the spring of 1939. Accompanied by a large delegation, he crossed the red sands of the Dahna Desert to reach the eastern part of the Kingdom on the Arabian Gulf. His visit coincided with the completion of the pipeline stretching 69 kilometers from the Dammam oil field to the port of Ras Tanura.

There, a symbolic moment took place: King Abdulaziz personally turned the valve to load the first shipment of Saudi crude oil onto a tanker. Thus, on May 1, 1939, Saudi Arabia exported its very first barrel of crude oil to the world.

The Quincy Meeting and the Birth of a Strategic Partnership

As World War II drew to a close, global attention turned to energy. The United States, anticipating a post-war recovery and growing energy needs, saw in Saudi Arabia a stable, resource-rich partner with vast oil reserves. At the same time, the Kingdom, newly unified and eager for development, welcomed American expertise and investment.

On February 14, 1945, just 82 days before the war officially ended in Europe, President Roosevelt met King Abdulaziz aboard the USS Quincy at the Great Bitter Lake. The meeting, now known as the “Quincy Summit,” laid the foundations for a strategic partnership that extended beyond oil. It recognized Saudi Arabia as a key geopolitical player and spiritual heart of the Islamic world, and cemented the United States as its primary global partner.

Soon, Dhahran became home to a growing American community. Workers lived in self-contained compounds that included Western-style homes, schools, shops, recreational clubs, and even small churches. Though initially isolated from Saudi society, this community played a significant role in introducing new technologies, industrial practices, and modern urban planning to the Kingdom.

By 1938, Aramco employed 2,745 people, including 236 Americans and more than 100 other expatriates. The arrival of American families, including the wives of engineers and executives, signaled the beginning of deeper cultural exchange. In 1937, two of the first American women, Annette Henry and Nellie Carpenter, arrived in the Eastern Province. To accommodate the growing expatriate presence, Aramco shipped the first mobile, air-conditioned homes to the desert.

Strengthening Ties Through Crises

Over the following decades, the US-Saudi relationship deepened. As Aramco expanded, the American community grew, spreading across eastern cities like Ras Tanura, Abqaiq, and Jubail. The bonds formed in the workplace gradually extended to neighborhoods and schools. Although cultural differences remained, trust and mutual respect grew.

In 1973, the October War and subsequent Arab oil embargo shocked global markets and sent fuel prices soaring. While the embargo strained relations, it also underscored Saudi Arabia’s central role in global energy stability. From then on, Washington viewed Riyadh not just as an oil supplier, but as a geopolitical partner essential to maintaining balance in the Middle East.

The Cold War further strengthened the relationship. Saudi Arabia’s moderate policy and anti-communist stance made it a dependable ally. The partnership was tested and reinforced through regional crises, including the Iranian Revolution (1979), the Iran-Iraq War (1980–1988) and Iraq’s invasion of Kuwait (1990).