MUSCAT: Duqm’s growing regional importance as a hub for energy logistics was further reinforced on Monday, October 27, 2025, with the signing of a joint venture agreement to establish Oman’s first integrated energy supply chain management company in the Special Economic Zone.

The partners in the joint venture are Energy Development Oman (EDO), the wholly Omani state-owned energy holding company and the Middle East division of Japanese trading and investment conglomerate Sumitomo Corporation. The signing took place on the opening day of the Duqm Economic Forum 2025, held in the SEZ.

Mazin al Lamki, Managing Director of EDO and Masahiro Yoshimura, General Manager of Sumitomo Corporation, signed on behalf of their respective organisations.

“This strategic partnership marks a key step in strengthening the national energy ecosystem through investment in local content development, the advancement of industrial value chains and the growth of Omani talent, while positioning Duqm as a central hub for logistics and energy-related industries”, EDO said in a post.

“Anchored in Al Duqm’s strategic location at the crossroads of Asia, Africa and the Middle East, the partnership will elevate the role of supply chains from a supporting function to a driver of economic growth — connecting investment, industry and innovation under one integrated framework”, the holding company added.

According to Sumitomo, integrated supply chain management enables the Japanese trading giant to coordinate the procurement, storage and just-in-time delivery of tubular products — also known as Oil Country Tubular Goods (OCTG) — to Oman’s oil and gas fields with maximum efficiency and minimal downtime. By centralising logistics through its Duqm hub, Sumitomo ensures cost-effective, reliable and locally supported access to critical well-construction materials.

Sumitomo Corporation Middle East (SCME) is a longstanding supplier of OCTG to Petroleum Development Oman (PDO). EDO, by virtue of its 60 per cent ownership of oil resources and 100 per cent ownership of non-associated gas resources in Block 6 operated by PDO, is by far the largest consumer of OCTG in Oman.

Tubular product supplies began in 2003, when parent company Sumitomo Corporation, together with Nippon Steel & Sumitomo Metal Corporation (NSSMC), signed agreements to provide high-quality tubular goods to PDO, the Sultanate of Oman’s largest hydrocarbon producer.

A specialised storage area for OCTG has since been established in the Port of Duqm’s logistics zone as part of a ‘Mill to Well’ model designed to optimise supply chain efficiencies related to the delivery of these pipes to PDO.

In remarks to the Observer, Sumitomo’s Yoshimura described the strategic partnership as another milestone in enhancing the supply chain model for tubular steel products, which are pivotal to sustaining hydrocarbon operations in the country.

“More than 20 years ago, I was part of the Sumitomo Corporation team that launched inventory operations for PDO”, he recalled. “We started in Dubai due to the absence of free zones in Oman at the time. But when SOHAR Port and Freezone was established, we moved our base there before coming here to Al Duqm. We are very pleased once again to contribute to Oman’s growth — this time together with EDO”.

The Duqm hub, Yoshimura explained, will provide more than just physical inventory management services for tubular steel products. It will employ state-of-the-art software to ensure effective and efficient control of inventory levels, thereby avoiding unnecessary stockpiling and wastage.

“What we are providing is efficient operational and technical know-how. Together with EDO, we aim to establish a world-class, highly efficient supply chain model in Oman”.

While the energy logistics hub will primarily serve Oman, Sumitomo will also explore the potential to work with EDO to expand the scope of the partnership to support not only oilfield-related hardware but also equipment for solar and wind energy generation, he added.

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