At Duqm, Kuwait holds a stake in refining and product-export capacity outside the Strait of Hormuz, while European partners envisage a departure point for future hydrogen shipments. Oman is using this coastline to attract industrial investment and connect its energy resources to overseas markets. The challenge for Muscat is to turn those connections into lasting domestic value.

Oman has fewer financial resources than Saudi Arabia and the UAE, while its gas exports cannot match Qatar’s scale. Its strategy depends on combining domestic resources, ports and diverse partnerships into a distinctive position in the energy market. Difficult choices arise when export projects and the domestic economy compete for gas, electricity, water and capital.

Oil and Duqm: Connecting revenue with geography

Oil remains a major pillar of Oman’s economy. According to the US International Trade Administration, crude oil and condensate reserves stood at approximately 4.8 billion barrels at the end of 2024. Sustaining revenue requires investment in production and activities that retain more value domestically.

The Duqm refinery, with a capacity of 230,000 barrels per day, is an equal partnership between Oman’s OQ and Kuwait Petroleum International. Kuwait gains refining and product-loading capacity outside Hormuz, with access to Asian, African and European markets. Oman connects its partner’s capital and industrial experience to Duqm’s development.

The Duqm refinery, with a capacity of 230,000 barrels per day, is an equal partnership between Oman’s OQ and Kuwait Petroleum International. Kuwait gains refining and product-loading capacity outside Hormuz, with access to Asian, African and European markets. Oman connects its partner’s capital and industrial experience to Duqm’s development.

Crude shipped........

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