Oman and Kuwait agreed on signing mid-April a partnership deal for the Duqm refinery, near Al Wusta region’s port, Times of Oman reported following a statement by Kuwait’s Oil Minister.

According to Zawya, the 230,000b/d facility is a part of Oman’s industrial zone, which aims to diversify the Omani economy away from oil.

After Abu Dhabi’s International Petroleum Investment Company backed out from the project, Kuwait Petroleum Company suggested a 50:50 equity joint venture with Oman Oil Company.

Additionally, Oman Oil Company’s CEO, Isam Al Zadjali, told reporters that the finance for the scheme is set on a 60% equity base. Meanwhile 40%of the equity required for the project will be financed via debts that will mostly come from international banks and from export credit agencies.

Installed in the special economic zone of Al Wusta, the projects’s proximity to the region’s seaport gives the Duqm refinery an important advantage in international shipping lines in the Indian Ocean and the Arabian Sea.