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OQ signs deal with SABIC for petchem project in Duqm

7 Dec 2021 OQ signs deal with SABIC for petchem project in Duqm By OUR CORRESPONDENT

Muscat – OQ Group, Oman’s global integrated energy company, signed a memorandum of understanding (MoU) with Saudi Arabia’s SABIC to study the development of a petrochemical project in the Special Economic Zone of Duqm (SEZD).

This step coincided with the visit of the Saudi Arabia’s Crown Prince Mohammed bin Salman bin Abdulaziz al Saud, to Oman. The project involves a world-scale steam cracker unit and derivatives units producing olefins derivatives (ethylene and propylene).

The agreement was signed by Talal bin Hamed al Awfi, CEO of OQ Group and Abdulrahman al Fageeh, executive vice president for petrochemicals at SABIC.

In a press statement, Awfi said, “This agreement focuses on the development of a new petrochemical project in Duqm. OQ aims to enhance the integration of the refinery and petrochemical industries with other downstream industries as part of its vision to maximise the added value and contribute to the development of downstream industries. We look forward to enhancing our strategic partnership with SABIC and benefiting from its expertise to carry out this project.”

Fageeh said, “We are honoured to sign this MoU with OQ as our focus has always been on key collaborations and on building fruitful relationships for sustainable growth, regionally and globally. With our diverse global portfolio, along with our manufacturing competencies, we are confident of helping to drive the development of downstream industries in Oman, just as we are currently a key enabler in the achievement of Saudi Arabia’s Vision 2030 objectives.”

MoU with Aramco Trading

OQ Group also signed a non-binding MoU with Aramco Trading Company (ATC), the trading arm of Saudi Aramco, to explore joint commercial opportunities in the energy sector between the two companies. The MoU was signed on Monday by Awfi and ATC CEO Ibrahim al Buainain.

The two parties intend to collaborate directly or through their affiliates on exploring business prospects in Duqm and nearby crude oil storage terminal in Ras Markaz.

Under the MoU, the parties will undertake a joint review of ATC supplying feedstock to Duqm Refinery & Petrochemicals Industries Company (OQ8), as well as possible offtake of oil products by ATC from OQ8.

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