The Duqm refinery project has moved into a new development phase after completing its original construction programme. The $9 billion project was 92% complete in July 2022. OQ8 has since commissioned the refinery and increased throughput to 255,000 barrels per day. The operator is now pursuing additional processing infrastructure around the operating facility.
OQ8 completed the Lenders Reliability Test in 2024, establishing the refinery’s Actual Completion Date. The milestone also unlocked more than $4 billion in shareholder guarantees.
The refinery now forms a major industrial asset within Oman’s Special Economic Zone at Duqm. It also anchors further downstream development around the facility.
Duqm Refinery Project advances new processing infrastructure
OQ8 has started front-end engineering design for a new reformer unit at the refinery. The proposed facility would upgrade naphtha into high-octane gasoline components, including reformate.
The reformer would improve the refinery’s ability to convert intermediate products into higher-value fuel components. OQ8 is also examining opportunities involving sulphur and petroleum coke.
The refinery currently operates at 255,000 barrels per day. That figure represents 110% of its original 230,000-barrel-per-day nameplate capacity.
Furthermore, OQ8 plans to use refinery by-products to support industrial development around Duqm. A cement plant plans to use petroleum coke from the refinery from 2028.
The sulphur processing system also provides additional downstream capacity. It includes three drum granulation units with a design capacity of 800 tonnes per day each.
Duqm Refinery Project builds on completed construction packages
The original Duqm Refinery Project divided construction into three EPC packages. Técnicas Reunidas and Daewoo Engineering & Construction delivered the process units.
Petrofac and Samsung Engineering handled utilities and offsite facilities. Meanwhile, Saipem and Chicago Bridge & Iron delivered the export terminal and crude storage infrastructure.
Saipem also delivered an 80-kilometre crude pipeline linking Ras Markaz with the refinery. The infrastructure supports crude supply to the Duqm processing complex.
The refinery produces diesel, naphtha, jet fuel and liquefied petroleum gas. Its location also supports exports through Duqm’s growing industrial and logistics infrastructure.
The latest development could therefore create another construction cycle around an operational refinery. However, the reformer remains at FEED stage rather than an awarded construction contract.
The project also provides context for Abu Dhabi’s $4.3 billion Rich Gas Development Phase 3. While Duqm has progressed into commercial operations and further expansion planning, the Abu Dhabi project has entered construction with Tecnimont delivering the Ruwais NGL expansion. This comparison highlights the continuing investment in major gas, refining and downstream infrastructure across the Gulf.
Duqm Refinery Project connects with wider petrochemical development
OQ8 and Kuwait Petroleum International are also advancing plans for a petrochemicals complex at Duqm. The proposed development would use feedstock from the refinery and strengthen downstream integration.
In April 2026, contractors were reportedly invited to participate in a feed-to-EPC competition. The process combines front-end engineering design with subsequent EPC competition.
These developments extend the industrial role of the Duqm Refinery beyond crude processing. They also create opportunities for additional infrastructure, processing units and supporting utilities.
The refinery has already exported more than 19 million tonnes of refined products since exports began in May 2023. Its output has reached markets across Asia, Africa and Europe.
The progression demonstrates how the original refinery construction has evolved into a broader downstream development platform. Further investment will depend on the outcome of current engineering and project-development activities.
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The Duqm refinery project team
The project is a Joint Venture (JV) development between OQ and Kuwait Petroleum International (Q8). OQ is a national petroleum investment company of Oman, while Q8 is the international marketing arm of Kuwait Petroleum Corporation.
Duqm Refinery & Petrochemicals Industries Co, a JV between Oman Oil Company (OOC) and Q8 is the Duqm refinery operator.
The engineering, procurement, and construction (EPC) work for the refinery is divided into three separate packages. The first package features the process units. It was won by a joint venture between Tecnidas Reunidas and Daewoo Engineering & construction.
The second package, on the other hand, includes the utilities and offsite facilities. It was awarded to Petrofac and Samsung Engineering. Lastly, the final package includes the product export terminals at the Duqm port in as well as the refinery dedicated crude storage tanks at the Ras Markaz. It was awarded to Saipem and Chicago Bridge & Iron.
The Duqm refinery aims to refine crude to produce naphtha, jet fuel, diesel, and liquefied petroleum gas. Approximately, the Duqm refinery is expected to refine 230,000 barrels per day.
Project Fact Sheet
Name: Duqm Refinery
Location: Special Economic Zone at Duqm, Oman
Original project value: $7 billion
Current reported investment: More than $9 billion
Original processing capacity: 230,000 barrels per day
Current processing capacity: 255,000 barrels per day
Capacity increase: 110% of nameplate capacity
Current status: Commercial operations
Operator: OQ8
Ownership: OQ Group and Kuwait Petroleum International
Inauguration: February 2024
Lenders Reliability Test: Completed in 2024
Actual Completion Date: Established following successful LRT
Export operations: Began in May 2023
Main products: Diesel, naphtha, jet fuel and LPG
Current expansion: Proposed reformer unit
Reformer stage: Front-end engineering design
Reformer purpose: Upgrade naphtha into high-octane gasoline components
Additional opportunities: Sulphur and petroleum coke processing
Sulphur production: Approximately 900 tonnes per day
Sulphur granulation: Three units
Granulation design capacity: 800 tonnes per day per unit
Crude pipeline: 80 kilometres
Proposed petroleum coke use: Duqm cement plant from 2028
Related development: Duqm petrochemicals complex
Project Team
Owner: OQ Group and Kuwait Petroleum International
Operator: OQ8
Process units EPC contractors: Técnicas Reunidas and Daewoo Engineering & Construction
Utilities and offsite EPC contractors: Petrofac and Samsung Engineering
Export terminal contractors: Saipem and Chicago Bridge & Iron
Crude storage contractors: Saipem and Chicago Bridge & Iron
Crude pipeline contractor: Saipem
Development zone: Special Economic Zone at Duqm
Refinery expansion developer: OQ8
Proposed downstream development: OQ8 and Kuwait Petroleum International
Proposed petrochemicals project: Duqm petrochemicals complex
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