The country is planning to construct a new 230,000 bbl/day refinery in the town of Duqm by 2019. The project will be developed by a joint venture between Oman Oil and the International Petroleum Investment (IPIC) of Abu Dhabi.
Meanwhile, state-owned Oman Refineries and Petroleum Industries will undertake upgrade works at the Sohar facility to increase its refining capacity by more than 70% or 82,000 bbl/day by 2017. Its current capacity is 116,000 bbl/day.
The Middle Eastern oil exporter, which is not a part of the Organization of the Petroleum Exporting Countries (OPEC), intends to compete with OPEC members including Saudi Arabia and Kuwait.
Oman exports medium sour crude with high sulphur content called Oman blend, to Asia, primarily to China.
A Middle East-based energy trader was quoted by ICIS as saying: "Oman wants to punch above its weight and produce more crude. Typically, crude production in the region is centred around Saudi Arabia."
