The Global Integrated Energy Group (OQO Oman) revealed developments in the time plans for the date of exporting the first refined shipments from the Duqm Refinery, following the expected start-up by the end of this year (2023), as the group continues to highlight the “Ras Markaz” station project to store oil and supply the refinery. supplies for refining operations.
OQ described the Ras Markaz station as the largest crude storage and export projects in the Middle East, according to recent statements seen by the specialized energy platform.
On the other hand, the group did not neglect to strengthen its strategy in support of the green transition in line with the Sultanate of Oman’s direction to expand in renewable energy and hydrogen, as confirmed by Talal Al Aufi, CEO of the group, during an interview with The Energy Year newspaper.
Duqm Refinery and Oil Storage
The CEO of the Omani OQ Group, Talal Al-Aufi, revealed that there is a tendency to export the first shipments from the Duqm Refinery by the beginning of next year (2024), following the full operation of the project at the end of this year (2023).
Al-Awfi said that the international markets will have the largest share of the refinery’s exports with the launch of the project, but at the same time he stressed that the local market will benefit from the products that will be subject to processing, such as naphtha and liquefied oil gas.
The CEO of the group relies a lot on the “Ras Markaz” station project, which is concerned with storing and exporting crude oil. Since the Omani Okio Group completed the construction work of the station in December at the end of 2022, it has been linked to the refinery through a pipeline that extends for about 80 kilometers.
The station currently contains more than 5 million barrels to supply the Duqm refinery with the necessary supplies, although the storage station can expand to 26.7 million barrels.
Al-Awfi explained that the refinery – with a capacity to process 230,000 barrels per day of crude – would transform the Sultanate of Oman into a regional center for refining and petrochemical production, in line with the group’s direction to expand investments in the refining and petrochemical sector.
Al-Awfi cited the joint development agreement signed between the group and each of the Saudi Sabic Company and Kuwait Petroleum International, at the end of last year (2022), regarding the construction of a petrochemical plant in the economic zone in Duqm.
renewable energy and hydrogen
While the Omani OQ Group is moving forward in the development of crude oil processing and export of refined derivatives, it has been taking parallel steps towards decarbonizing its operations and cooperating with the main parties to the oil and gas industry to achieve the same goal.
Talal Al Aufi, CEO of the Group, pointed to the Sultanate of Oman’s solar potential as well as wind energy, which supports the group’s efforts to benefit from these potentials and resources to develop renewable energy.
Perhaps the matter has a broader angle, as the group aims to keep pace with the movement of the Omani Ministry of Energy and Minerals through international partnerships, to develop 3 huge green hydrogen production projects in the country, given the main role of renewable energy in the production of hydrogen and green ammonia.
The below infographic – prepared by the specialized energy platform – details one of the renewable energy projects in the Sultanate of Oman, which is the largest solar panel project in the country:
Among these projects: the environmentally friendly “Highport Duqm”, the Salalah project, and the Green Energy Oman project.
Al-Awfi added that the ability of electrolysis poses a challenge to the production of green hydrogen on a large scale, but the time period for developing these technologies may play a major role in overcoming these challenges.
The CEO of the group stated that the Ministry of Energy and Minerals is making important steps in terms of sustainability, including the launch of the “Hydrom” project, especially as the Sultanate of Oman seeks to book a future site as a major hydrogen exporter.
Oman Okio Plans
The plan of the Omani OQ Group carries plans to support the transition towards clean energy, by taking advantage of renewable energy sources.
CEO Talal Al-Awfi indicated that the group’s role will not be limited to applying sustainability to its operations and projects, explaining that support for the deployment of these technologies will extend to companies not affiliated with the group, according to the interview followed by the specialized energy platform.
In contrast to renewable and clean energy plans, Al-Awfi reviewed the economic role played by the group to support the Omani economy, after it recorded financial results at the end of last year 2022, which included the highest net profit in its history, equivalent to $3.9 billion.
He said that the largest integrated energy group in the Sultanate focused its efforts on attracting investors to the energy industry in line with the “Vision 2040” adopted by the country. In addition, the group is the largest local investor in the same sector, whether through refining and processing or investments in renewable energy and hydrogen.
The CEO of the Omani OQ Group touched on the necessity of integrating local companies into the international markets, pointing out that the private sector and privatization processes play a major role in this regard, citing the offering of some shares of Abraaj Energy Services Company for subscription.
He revealed that a number of the group’s companies are currently under study, with the aim of liquidating some of them, by offering them for private or public subscription.
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