Sezad and Duqm Refinery Sign a Preliminary Usufruct Agreement

H.E. Yahya bin Said bin Abdullah Al Jabri Chairman of the Board of Directors of the Special Economic Zone Authority at Duqm signed in his office at KOM, a preliminary usufruct agreement with Duqm Refinery and Petrochemicals Industries Company that allows the company access and use of the location selected for the project which is around (900) hectares to carry out field studies, preparatory and clearance works to advance in the project to build a refinery within the set schedule. Eng. Isam Al-Zadjali, Chairman of the Duqm Refinery & Petrochemical Industries Company and CEO of Oman Oil Company signed the agreement on behalf of the company. According to the Agreement, both of SEZAD and Duqm Refinery and Petrochemical Industries Company are committed to reach a final agreement in a period that does exceed (12) months from the signing of the agreement, in terms of the development program and usufruct of the land that will be allocated for the project. The agreement also stipulates to find a legal and organizational framework through which both of the signing parties can negotiate, discuss and reach arrangements regarding their obligations toward the project. H.E. Yahya bin Said bin Abdullah Al Jabri Chairman of the Board of Directors of the Special Economic Zone Authority at Duqm emphasized the importance of this agreement which marks the launch of heavy-industries at SEZD. H.E. said that the Duqm Refinery is one of the growth engines of the Special Economic Zone in Duqm with respect to petrochemical industries, pointing out that there are many petrochemical projects that will be set up at SEZAD that will benefit from the products of the refinery, and that the presence of the refinery will contribute to the development of SEZD and to the implementation of many Small and Medium Enterorises. H.E. noted the importance of petrochemical industries in creating added-value to crude oil, that leads to enhancing revenues and realizing economic diversification in addition to creating jobs for our young people. SEZAD Chairman also said that there is an increasing demand for these industries and SEZAD is working to provide the appropriate infrastructure required by these industries. H.E. confirmed that SEZAD is keen to provide the elements of success for the refinery project and the various petrochemical industrial projects that are being set up at SEZD, indicating that SEZAD is currently working on implementing a number of projects that will serve the refinery. On his part, Eng. Isam Al-Zadjali, Chairman and CEO of the Duqm Refinery & Petrochemical Industries Company said, “Entering into the preliminary usufruct agreement with The Special Economic Zone Authority is one more step towards the commissioning of the ‘Duqm Refinery’ project that will play a significant role in supporting the growth of the national economy. As one of the key developments in the Sultanate’s energy sector, the refinery will be a major element in positioning Duqm as the next regional hub for hydrocarbons’ product storage, as well as refining and petrochemicals, while complementing other up and coming projects in the area. Building on the area’s strategic location, the project will also add intangible value to the ‘Duqm Brand’ and contribute to the introduction of new industries in the local and regional landscape of the energy and energy related sectors”.