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Kuwait Petroleum International (KPI) and Oman’s OQ Group have signed an agreement to implement a petrochemicals complex at Duqm, according to Kuwait-based Arabic language newspaper Alseyassah.
The project will be developed by OQ8, a joint venture between Oman’s state energy company OQ and KPI, which operates the Duqm Refinery, located within the Special Economic Zone at Duqm (SEZAD) on Oman’s southeast coast.
Sources told Kuwaiti newspaper Al-Seyassah that initial implementation steps for the Duqm petrochemicals complex are expected to begin in 2026, with additional joint initiatives anticipated across related oil, gas and refining sectors.
The project will rely on feedstock from Duqm Refinery, which rapidly ramped up capacity from its original 230,000 barrels per day (bpd) to about 255,000 bpd within less than a year of operations.
The JV refinery is also expected to undergo organisational changes in the first half of 2026, including appointments at deputy chief executive and senior management levels, the Al-Seyassah report said.
OQ8 CEO Abdullah Al Ajmi told Oman Daily Observer newspaper earlier this month that front-end engineering and design (FEED) is underway for a reformer unit that will upgrade low-value straight-run naphtha into high-octane gasoline blendstock.
In December 2025, Reuters reported that OQ was in discussions with new potential partners for the Duqm petrochemicals project after Saudi petrochemicals giant SABIC withdrew from the planned development.
(Writing by Majda Muhsen; Editing by Anoop Menon)
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