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REFINING
Oman's Duqm refinery which is already producing at capacity of 230,000 bpd, will add another 5%-10% of output in 2024 according to the company's CEO David Bird speaking with Platts.
- "We should be able to get an extra 5%-10% of production just by pushing it, so we are very optimistic on that. It is a game of utilization. Then there is growth. We have to earn our right to grow," Bird said.
- The refinery is designed to process bottom of the barrel crudes into high-margin middle distillates including LPG, naphtha, jet fuel and diesel, and to be maintenance free for four years.
- Due to a supply and offtake agreement with Omani and Kuwait shareholders, the refinery is focused on processing medium sour grades, including Kuwait Export Crude and Omani Export Blend, and later heavy sour crudes. The biggest product sold so far is diesel.
- “I have yet to see whether my conversion units can be fully utilized by the crudes we run. So, if they are not fully utilized, we will be looking at bringing in direct feedstock to those conversion units and that could be fuel oil from Kuwait for example. They make a lot of low sulfur fuel oil." Bird said.
- Duqm is considering upgrading its naphtha product as a petrochemical feedstock to serve the gasoline market Bird said.
- Duqm/s business case was to target the more developed markets of Europe and Asia with both refined fuels and petrochemical feedstock. Bird said to Bloomberg Tuesday he was “pleasantly surprised” to see refined products head to Brazil, the US Gulf and also into East Africa.
Source: Platts
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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