SABIC, OQ and Kuwait Petroleum International (KPI) have signed a project development agreement of a jointly owned petrochemical complex.
The three companies aim to establish a petrochemical complex in the Special Economic Zone at Duqm (SEZAD) in Oman consisting of a steam cracker and derivative units and an 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.
The agreement was signed by Abdulrahman bin Saleh Al Fageeh, SABIC CEO, Talal bin Hamed al Awfi – OQ Group CEO and Shafi Taleb Al-Ajmi, CEO of Kuwait Petroleum International.
Abdulrahman Al-Fageeh, SABIC CEO, said: “SABIC’s collaborative approach has built longstanding relationships of collaboration, delivered innovative solutions and created mutual value for more than 45 years.
“This agreement enables us 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.”
Talal Al Awfi, OQ Group CEO, added: “OQ is proud of this historic agreement with our partners SABIC and KPI. 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 (JV). This agreement also comes in line with Oman Investment Authority (OIA) plans to attract foreign investments to support realise Oman’s vision 2040 in its endeavour to diversify Oman’s economy.”