The International Petroleum Investment Company (IPIC) and the Oman Oil Company (OOC) have penned a joint agreement setting out plans for a new refinery and petrochemicals facility in Duqm, Oman.

IPIC's managing director Khadem al-Qubaisi and Ahmed al-Wahaibi, chief executive officer of OOC, signed a memorandum of understanding paving the way for a detailed assessment for the project.

Mr al-Wahaibi commented: "The prospect of constructing refinery and petrochemicals facility at Duqm is important, not only for OOC and IPIC, but for the sultanate's economy as well."

If it moves ahead, the project is likely to boost employment in the country and lead to a greater investment in training and development.

A joint statement from the two companies also declared that the new refinery complex will help Oman to diversify its economy for long-term sustainability.

Mr al-Wahaibi concluded by stating that feasibility studies for the project are expected to be commissioned in the very near future.

Getenergy event for GCC countries November 2009