A refinery on Oman’s eastern coast, which required $9 billion investment to build, has been resilient against recent disruption in the Red Sea and may even benefit from the situation as global competition is affected.
The Duqm refinery, also known as OQ8, is a joint venture between Kuwait Petroleum International and Oman’s state-run energy company OQ.
The refinery, which opened this month, has a production capacity of 230,000 barrels per day, serving markets in East Africa and the Indian subcontinent.
Duqm is "well positioned" to capitalise on the unrest in the Red Sea, said chief executive David Bird, as shipments of refined products from competitive sources in West Africa and Europe grapple with longer travel times around Africa.
“We have been resilient to it as a result of our unique location and the markets we're serving,” Mr Bird told The National in an interview.
Many of the refinery’s products are shipped to markets in India, Pakistan and Sri Lanka, while also drawing high demand in Kenya and Tanzania.
Major shippers and operators have suspended operations in the Red Sea – a vital maritime route – following attacks on commercial shipping lines by Yemen’s Houthi rebels. About 12 per cent of seaborne oil trade and 8 per cent of liquefied natural gas passes through the Bab Al Mandeb.
However, OQ8 is not “immune” to the effects it has had on global shipping markets, the company’s chief said.
“It impacts every aspect of our business … our trade is not bilateral. There are insurers, charter parties [and] ship owners, so it impacts our business,” Mr Bird said.
“No matter where you are in the world, insurance rates go up."
Wood Mackenzie data shows 8.5 million bpd of crude oil and refined products use the Red Sea.
However, violence at Bab Al Mandeb is leading to more than 20 per cent of oil tanker trade diverting via the Cape of Good Hope, the energy consultancy said in a research note this month.
“With more than two weeks added to voyage times, freight rates have naturally increased, along with European refined product cracks,” Wood Mackenzie said.
“The domino effect of this change to trade flows is likely to affect the global refining sector for some time to come."
Duqm, which recently completed its 100th delivery of refined products, produces liquefied petroleum gas (LPG), naphtha, diesel, kerosene jet fuel, petroleum coke and sulphur.
The second phase of the project involves the production of petrochemicals, a key area of focus for Gulf oil producers in recent years.
In 2022, Saudi Basic Industries Corporation, better known as Sabic, signed an agreement with OQ and Kuwait Petroleum International to set up a petrochemical complex in the sultanate.
The project, which includes a steam cracker and a natural gas liquids extraction plant, will use feedstock from the Duqm refinery.
Saudi Arabia, Oman and Kuwait have conducted a new feasibility study on a petrochemical opportunity that is “slightly different” from what was planned initially and would be “much more resilient”, Mr Bird said.
Duqm may gradually increase its capacity, while exploring the creation of new products such as bitumen bunkering fuel, military fuels, reformate and gasoline, Mr Bird said.
“We are deep in feasibility of some options but before we go and ask for more investor cash, we have to show that we're competitive and a safe custodian of those funds,” he said.
“We have to earn our right to grow.”
The refinery is “re-evaluating” initial strategic decisions, including the possibility of refining different grades of crude oil apart from those supplied by its shareholders, Mr Bird said. “We're a marginal business so any option is on the table to enhance our financial resilience."
However, he added such a decision would not be made “right now”.
Mr Bird’s remarks come as ageing plants are being shut down in the US, the country with the world's largest oil refinery capacity.
The costs associated with maintenance, regulatory compliance and fuel-specification upgrades are making these assets increasingly expensive to run, Mr Bird said.
As a result, many of the ageing refineries are up for sale at “pennies on the dollar”, he added.
“I think there will be another wave of supply destruction in developed markets and that will be positive news [for Duqm] … independent of whatever outlook we have on demand,” Mr Bird said.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Killing of Qassem Suleimani
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
Killing of Qassem Suleimani
The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
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EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
KILLING OF QASSEM SULEIMANI
UAE currency: the story behind the money in your pockets
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 178hp at 5,500rpm
Torque: 280Nm at 1,350-4,200rpm
Transmission: seven-speed dual-clutch auto
Price: from Dh209,000
On sale: now
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
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UAE currency: the story behind the money in your pockets
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
Company profile
Name: Dukkantek
Started: January 2021
Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based: UAE
Number of employees: 140
Sector: B2B Vertical SaaS(software as a service)
Investment: $5.2 million
Funding stage: Seed round
Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
