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Oman’s Duqm Refinery closes record $4.6 billion deal


by Kasun Illankoon

Duqm Refinery has announced it has secured the largest project finance agreement in Oman’s history, clinching a $4.6 billion funding deal for the under-construction mega project.

The agreement has been hailed as an “important milestone” for the project, which is a joint venture between state-owned enterprises Kuwait Petroleum International and Oman Oil Company.

Chief financial officer of Duqm Refinery, Mubarak Al Naamany, said the “largest project financing in the Sultanate of Oman” included the biggest “Sharia’h-compliant facility to a greenfield project in Oman provided by a consortium of Islamic financing institutions”. 

The agreement includes the provision of insurance and guarantees provided by three export credit agencies, something that Naamany, Project Chief Financial Officer, said demonstrated global confidence in the project.

Commenting on this significant milestone Mubarak Al Naamany said, “The $4.61 billion multi-sourced financing signed for the Project is not only the largest project financing in the Sultanate of Oman, it also includes the largest shariah-compliant facility to a green field project in Oman provided by a consortium of Islamic financing institutions”.

The Duqm Refinery Project is of strategic importance and is a priority national investment for the Government of Oman, fully aligned with the objective of diversifying the Omani economy and promoting long term economic growth and employment opportunities for Omani nationals.

The Project is also the first in other aspects. It is the first major cross border refinery project in the Middle East region. It is also the first joint venture of a refinery project in the region between government owned oil companies of two Middle East countries.

In addition, it is the first refinery in the Middle East to process crude from another Middle Eastern country on a long term contractual basis.

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