Oman’s OQ seeks partners for Duqm petchems project

• Saudi Arabia’s Sabic has withdrawn
• Talks with Asian and US companies
• Possible IPOs of two OQ units

Oman’s state energy group OQ is in talks with potential partners for its planned petrochemical complex in Duqm after Saudi Arabia’s Sabic withdrew, OQ CEO Ashraf Al Mamari has said.

Sabic decided “to withdraw from the project, so now it is us and the Kuwaiti side,” Mamari told Reuters in an interview, without giving details on the reason for the decision.

He added that OQ is also in early talks with foreign investors, including US and Asian businesses, about potential partnerships and equity investments in some of its “key projects”. He cited higher investor confidence as the country’s and OQ’s credit ratings have improved in recent years.

In recent years OQ has listed some of its units including its exploration and production business OQEP. It is assessing IPOs of up to two more in 2026, Mamari added.

Sabic’s withdrawal from the Duqm petrochemical project in Oman has not been previously reported. The company had no immediate comment. 

Duqm port on Oman’s southwest coast is close to its major oil and gas projects, where OQ and Kuwait Petroleum International last year inaugurated a $9 billion refinery called OQ8, with plans for a petrochemical project close by. 

“Currently it’s on a 50-50 (shareholding) basis and in parallel, we are discussing with some partners if they would be interested in joining as a third partner,” Mamari said, without giving any names.

“We are discussing with both technology solutions providers and partners or even financial partners. When it comes to the equity share and split, we did not decide that yet, which will depend on the progress of the project,” he said.

Sabic is restructuring as the chemicals industry faces weak demand. It is 70 percent owned by Aramco, which is cutting costs and selling assets as it balances capital expenditure with lower oil prices and shareholder payouts.

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OQ is owned by Oman’s sovereign wealth fund and has a portfolio of companies ranging from exploration and production to refining, chemicals, trading, hydrogen and renewables.

Oman, a small non-Opec oil producer, is following other Gulf countries in economic diversification efforts, including with a privatisation drive to attract foreign investors.

That, along with fiscal reforms, has helped the sultanate pay down debt and turn its large fiscal deficit into a surplus since 2022. Credit rating agency Fitch upgraded it to investment grade this week.