Oman’s state-owned energy group OQ is in talks with new potential partners for its planned petrochemical complex in Duqm after Saudi Arabia’s SABIC withdrew from the project, OQ CEO Ashraf Al Mamari said.
The project, located near the $9 billion Duqm refinery (OQ8) jointly developed with Kuwait Petroleum International, is currently structured on a 50–50 basis between the Omani and Kuwaiti sides. OQ is now exploring the option of bringing in a third partner, with discussions underway with technology providers, strategic investors, and financial partners.
SABIC’s exit comes as the global chemicals sector faces weak demand, prompting restructuring efforts. OQ, owned by Oman’s sovereign wealth fund, said it is also holding early talks with US and Asian investors on equity participation in several key projects, citing improved investor confidence following recent credit rating upgrades for Oman.
The move aligns with Oman’s broader push to diversify its economy, attract foreign investment, and build on recent fiscal reforms that have helped turn budget deficits into surpluses
