A joint Saudi-Omani-Kuwaiti coalition was established on Wednesday in Muscat. The coalition seeks to develop a petrochemical complex that meets the growing market demand.
Oman’s OQ, Saudi’s SABIC, and the Kuwait Petroleum International (KPI) have signed a Project Development Agreement for a jointly owned petrochemical complex in the Special Economic Zone at Duqm (SEZAD), in the Sultanate of Oman.
The three companies aim to establish a petrochemical complex consisting of a steam cracker and derivative units and a natural gas liquid (NGL) extraction facility.
They will conduct the necessary studies and collaborate using their wealth of technical and commercial experience to develop the project with unique attributes that make it globally competitive and profitable for all three partners.
SABIC owns a 40 percent stake in the project while OQ and KPI each have a 30 percent stake, according to information obtained by Asharq Al-Awsat.
Chairman of Oman Investment Authority (OIA) Abdul Salam Mohammed Al Murshidi told Asharq Al-Awsat that the agreement embodies the interest of the three countries' leaders in economic integration.
He further considered the agreement a demonstration of the success of Oman's economic diplomacy and its endeavors to invest Oman’s natural wealth and vital components to attract foreign investments.
Al Murshidi highlighted that the project has a huge economic and industrial feasibility, mainly that the three states stand as oil producers and exporters.
The agreement was signed by OQ Group CEO Talal bin Hamid al Awfi, CEO of SABIC Abdulrahman bin Saleh al Fageeh, and CEO of KPI Shafi Taleb al Ajmi.
Al Awfi said: “The agreement is a significant milestone reached between the partners and comes at an important time in Oman along with our 52nd national day celebrations and the near completion of the OQ8 refinery project in SEZAD being undertaken by OQ and KPI through the OQ8 joint venture.”
“This agreement also comes in line with Oman Investment Authority (OIA) plans to attract foreign investments to support the realization of Oman’s vision 2040 in its endeavor to diversify Oman’s economy.”
For his part, Al Fageeh said that “SABIC’s collaborative approach has built longstanding relationships of collaboration, delivered innovative solutions, and created mutual value for more than 45 years.”
He said the agreement “enables us to identify and assess the opportunity for ambitious and sustainable growth by bringing together our capabilities, expertise, and technologies and work collectively with our partners.”
“Our involvement in this well-positioned project is consistent with our growth strategy and Saudi Vision 2030 goals to develop a stronger downstream business addressing challenges in the petrochemicals industry such as carbon neutrality and providing diversified and sustainable products.”
“Working with our regional partners supports KPC's 2040 strategy for growth in the petrochemical industry and enhances integration between the refining and petrochemical sectors,” Al Ajmi commented.
“The project also supports the economic growth and development of the Special Economic Zone at Duqm (SEZAD),” he added.
The project intends to deploy state-of-the-art technologies to minimize carbon footprint and incorporate circular economy aspects and commit to high environmental standards.
In addition, the project would also benefit from the excellent location of Duqm and taking advantage of the infrastructure which has been developed in the area, as OQ continues in its strategy to help develop SEZAD as a manufacturing and logistics hub in line with vision 2040.
