Duqm Refinery Expands Output: Key Insights on How This Boosts Investment Opportunities in Oman
DUQM: Duqm Refinery has made notable advancements in operational performance and production efficiency since its official inauguration on February 7, 2024. This milestone is pivotal for Oman’s downstream energy sector and highlights the Oman–Kuwait strategic partnership that supports the initiative.
Engineer Abdullah bin Salim al Ajmi, CEO of Duqm Refinery, stated that the refinery is committed to establishing a reliable operational model focused on efficiency, discipline, and long-term value creation. Since commencing operations, the refinery has exported 633 shipments of refined products to global markets, with 284 shipments occurring in 2025 alone. This trend signifies enhanced operational stability and improved export performance.
A significant achievement for the refinery has been the increase in production capacity from 230,000 barrels per day to 255,000 barrels per day, enabling the facility to operate at approximately 110% of its nameplate capacity. This accomplishment underscores successful ongoing operational optimization efforts and the refinery’s capability to sustain higher output levels while adhering to reliability and safety standards.
The resilience of the supply chain has also strengthened, evolving from sourcing feedstock from two countries during the initial stages of operations to twelve countries currently. This diversification has bolstered operational continuity and improved the refinery’s readiness to handle fluctuations in the global crude supply market.
Financially, the refinery reached a noteworthy milestone in March 2025 when lenders released a $4 billion shareholder guarantee after the project met their reliability test. This development reflects strong confidence in the refinery’s operating performance and governance framework.
Al Ajmi further emphasized the refinery’s commitment to supporting local economic development, designating approximately 12% of its 2025 procurement and service spending to local content, particularly benefiting small and medium enterprises. This approach reinforces the refinery’s role as a strategic industrial anchor within the Duqm Special Economic Zone. —ONA
Special Analysis by Omanet | Navigate Oman’s Market
The operational success of Duqm Refinery signals a pivotal shift in Oman’s downstream energy sector, offering businesses enhanced export opportunities and a more reliable supply chain. This development presents strategic avenues for smart investors focused on oil and energy-related ventures, while simultaneously emphasizing the need for risk management amidst global market fluctuations. Entrepreneurs should seize the moment to engage with local SMEs, tapping into the refinery’s commitment to increasing local procurement.
