Duqm Refinery eyes 10% capacity increase

10/11/2025 02:31 AST

Duqm Refinery, also known as OQ8, is exploring a 10% increase in its production capacity beyond the current 255,000 barrels per day (bpd), leveraging operational efficiency and asset optimisation without the need for new capital investment, according to Abdullah bin Salim al Ajmi, CEO of Duqm Refinery.

Ajmi said the move reflects the refinery's exceptional engineering performance and high technical readiness, meeting the highest global efficiency standards.

"The refinery's advanced operational systems and ability to maximise asset utilisation provide scope for boosting production capacity without the need for additional capital expansion," he said in a statement to the Oman News Agency (ONA).

Record operational performance
The RO3.5bn refinery, a 50:50 joint venture between Oman's OQ Group and Kuwait Petroleum International, reached full capacity in early 2024 following a successful trial phase. It passed the lenders' reliability test on its first attempt within just ten months - one of the fastest achievements in global refining history.

Since the start of full operations, Duqm Refinery has exported more than 560 shipments of petroleum products to international markets without any operational incidents. Exports in August reached around 295,000 barrels per day, marking the highest monthly export rate since operations began.

"This reflects the stability of the refinery's operational performance and the confidence of global markets in the quality of its products," Ajmi said.

The refinery produces approximately 130,000 barrels of diesel, 61,000 barrels of naphtha, 22,000 barrels of jet fuel and 15,000 barrels of LPG daily. Middle distillates account for more than half of total exports, supported by steady global demand for high-value refined products.

Ajmi highlighted that Duqm Refinery has diversified its crude feedstock mix beyond reliance on Omani and Kuwaiti crudes. The refinery has processed 11 different types of crude so far - including Omani, Kuwaiti, Iraqi Basra and West African grades - diversifying its crude slate to enhance operational flexibility and competitiveness in regional and global markets.

The refinery also aims to raise the added value of low-margin products by developing naphtha for gasoline or reformate production, while increasing the output of middle distillates and reducing light products such as LPG. "These efforts align with global trends towards cleaner fuels and energy-efficient products," Ajmi noted.

Strong sustainability and environmental focus
Ajmi said that Duqm Refinery has made notable strides in environmental sustainability, installing a solar energy system covering 47,000 square metres that generates 6.2 gigawatt-hours of electricity annually, contributing to reduced emissions and enhanced energy efficiency. Around 85% of hazardous waste is converted into energy under a 'convert rather than dispose' approach, supporting the circular economy.

In 2024, the refinery reused 3.4mn cubic metres of water and planted more than 2,000 seedlings in the Duqm region to promote biodiversity and afforestation.

"Our sustainability system is not merely an environmental slogan - it is an operational and economic practice that enhances production efficiency, reduces emissions, and supports Oman's green transformation goals," Ajmi said.

Boosting the local economy
In terms of local economic and social development, Ajmi said local procurement spending in 2024 totalled RO158.6mn, with about RO15mn directed to small and medium enterprises (SMEs), representing 9.46% of total local spending.

Ajmi stressed that Duqm Refinery continues to support national economic growth, stimulating business activity in Al Wusta Governorate and creating new opportunities across the logistics, contracting, energy, and transport sectors. "This, in turn, has helped create new economic opportunities for the local community and strengthened the integrated development ecosystem in the Duqm Special Economic Zone," he said.

In 2024, the refinery implemented more than 30 community initiatives in education, health, youth development, and entrepreneurship, directly benefiting over 31,000 people. Duqm Refinery provided more than 22,000 training hours in 2024 and raised its Omanisation rate to 67.5%, surpassing its 65% target.

Ajmi affirmed that Duqm Refinery, strategically located within the Duqm Special Economic Zone, has become a cornerstone of Oman's integrated economic and social development framework.

"The refinery represents a national model of industrial excellence and sustainable operation," he said. "Its true success lies in achieving a balance between economic growth and sustainable development, reinforcing Oman's position on the global energy map."