Duqm Refinery in talks to sell stake to Kuwait Oil – source

20 Jun 2016 – Duqm Refinery and Petrochemical Industries Company, a 50-50 joint venture between Oman Oil Company (OOC) and International Petroleum Investment Company (IPIC), is in talks to sell an equity stake to Kuwait Oil Company (KOC), a subsidiary of the state-owned Kuwait Petroleum Corporation, a source with knowledge of the situation said.

Kuwait Oil Company may look to take a ‘larger’ stake than one-third of the JV, the source added.

Duqm will also look to begin talks with banks to secure debt financing for the construction of a 230,000 bbl/day refinery in Oman within the next two months, the source said.

The project has a capex requirement of USD 6bn, according to Duqm. About 50% of the feedstock for the refinery will come from Oman, and the remaining 50% will be purchased off the market, the source said.

Moreover, talks on developing the project’s financial model are underway, the source said. Duqm’s financial adviser, Credit Agricole, will go to the market within the next two months with the aim of raising USD 4bn through debt financing, the source said.

The project is undergoing technical valuations ahead of awarding an engineering, procurement and construction contract, which is targeted for the end 1Q17, the source said. Duqm is looking to have secured commitments by banks willing to provide debt for the project by this point, the source added.

Credit Agricole, Kuwait Oil and Duqm did not respond to a request for comment.

by Katie McQue 

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