Saudi Basic Industries Corporation (Sabic), a global leader in diversified chemicals, has along with Omani energy company OQ and Kuwait Petroleum International (KPI) signed a project development agreement for a jointly owned petrochemical complex in the Special Economic Zone at Duqm (Sezad) in Oman. 

 

As per the deal, the trio will jointly set up a steam cracker and derivative units as well as a natural gas liquid (NGL) extraction facility as part of the project. 

 

The project intends to deploy state-of-the-art technologies to minimise carbon footprint and incorporate circular economy aspects and commit to high environmental standards. 

 

This mega project would support the region’s development aspirations, maximizing socio-economic impacts as well value addition to these companies, said the statement from Sabic.

 

The companies 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, it added.

 

"Sabic’s collaborative approach has built longstanding relationships and also delivered innovative solutions and created mutual value for more than 45 years. This deal 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," remarked its CEO Abdulrahman Al Fageeh after signing the agreement with OQ Group CEO Talal bin Hamed al Awfi and Kuwait Petroleum CEO Shafi Taleb Al Ajmi.

 

"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," he stated.

 

Dubbing the JV agreement as a significant milestone reached between strategic partners, Al Awfi said: "It comes at an important time in Oman coinciding with the sultanate's 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."

 

"This agreement also comes in line with Oman Investment Authority (OIA) plans to attract foreign investments to support realize Oman’s vision 2040 in its endeavour to diversify Oman’s economy," he added.

 

Al Ajmi expressed delight at working side by side with OQ and Sabic on this pioneering project in Oman.

 

"This collboration supports KPC's 2040 strategy for growth in the petrochemical industry and enhances integration between the refining and petrochemical sectors. The project also supports the economic growth and development of Sezad," he added.-TradeArabia News Service