OQ Reaps The Rewards Of Its Downstream Investments In 2023

12 Apr 2024 Issue: 67 / 15 By: James Marriott

In 2023, Omani integrated state energy firm OQ has started to see the rewards of heavy investment in its downstream segment, driven by the start-up of the 230,000 b/d Duqm refinery. With a major petrochemicals plant planned at Duqm, more IPOs are expected, as OQ seeks to raise funds.

With Omani state energy firm OQ entering its fifth year, it has started to show the outline of its trajectory. Formed at the end of 2019 through a merger of Oman Oil (OOC) and Oman Oil Refineries & Petroleum Industries (Orpic) its goal was to be “a catalyst for change” according to then-CEO Musab al-Mahrouqi (MEES, 20 December 2019). And change it has.

Since 2019, the firm has weathered the effects of a global pandemic, brought online what it calls “key growth projects,” and progressed an ambitious divestment campaign (MEES, 7 May 2021). According to the company’s 2023 annual report overall profits last year slipped to $2.5bn from 2022’s record $3.9bn. But the real story lies in its downstream segment which has not only managed to stay in the black (see chart 1) but has seen a slew of new projects boost downstream production. (CONTINUED - 848 WORDS)