Oman Oil Company (OOC) and International Petroleum Investment Company (IPIC) on Monday announced the formation of a joint venture company to own and manage the development of the planned refinery and petrochemical complex in Duqm.
The company, Duqm Refinery and Petrochemical Industries will be owned 50/50 by OOC and IPIC, the companies said in a statement.
The refinery, which is the first phase of the project, is expected to have a capacity of 230,000 barrels per day and is expected to be completed by 2017.
The second phase of the project will see the development of a petrochemical complex, the statement added.
Nasser bin Khamis Al Jashmi, Undersecretary of Ministry of Oil and Gas and chairman of OOC said the development of the refinery and petrochemical complex was one of the most important investment projects.
"It will play a vital role in supporting the oil and petrochemical industries in Oman due to the strategic location of the Duqm area, adjacent to one of the world's key shipping trade routes," he said.
"The commitment showed by the two companies emphasises the importance of the project in verifying the income of Oman and providing job opportunities to Omanis."
Khadem Al Qubaisi, managing director of IPIC, added: "This project is a very important project for our two countries. We are determined to put all necessary efforts to see the project is successfully commissioned in 2017 and there is no doubt our solid partnership with Oman Oil Company gives us confidence in achieving that."
IPIC has interests in a number of European-based companies, including Spain's Cepsa and Austrian oil group OMV.
Through its subsidiary, Aabar Investments, it also owns stakes in Daimler and UniCredit.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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