SABIC, Omani petroleum major OQ and Kuwait Petroleum International (KPI) signed a three-way project development agreement for a jointly owned petrochemical complex in the Special Economic Zone at Duqm (SEZAD), the Sultanate of Oman.
The proposed petrochemical complex will consist of a steam cracker and derivative units and a natural gas liquid (NGL) extraction facility.
The partner companies will conduct the necessary studies and collaborate to develop the project with unique attributes that make it globally competitive and profitable for all three partners.
The agreement was signed by SABIC CEO Abdulrahman bin Saleh Al Fageeh, OQ Group CEO Talal bin Hamed al Awfi, and CEO of Kuwait Petroleum International Shafi Taleb Al-Ajmi.
Abdulrahman Al-Fageeh, said the agreement enables the company to identify and assess opportunities for ambitious and sustainable growth by bringing together our capabilities, expertise and technologies and working 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,” Al-Fageeh said.
The project intends to deploy state-of-the-art technologies to minimise carbon footprint and incorporate circular economy aspects and commit to high environmental standards.
The mega project, besides supporting the region’s development aspirations, is expected to provide a bigger value addition to the three companies.
The project will benefit from the locational advantage of Duqm, being close to markets and taking advantage of the infrastructure which has been developed in the area.
This is also in line with OQ’s strategy to help develop SEZAD as a manufacturing and logistics hub in line with vision 2040.
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