Wedoany.com Report-Dec.13, Oman's state energy company OQ is engaging in discussions with prospective new partners for its proposed petrochemical complex in Duqm following the withdrawal of Saudi Arabia's SABIC, according to OQ Chief Executive Officer Ashraf Al Mamari.

In an interview with Reuters, Mamari stated that SABIC opted to exit the initiative, leaving OQ and Kuwait Petroleum International as the remaining participants.

"SABIC decided to withdraw from the project, so now it is us and the Kuwaiti side," Mamari told Reuters, without elaborating on the underlying factors.

SABIC did not provide an immediate response to inquiries regarding its departure, which had not been disclosed previously.

The Duqm site, located on Oman's southwest coast, benefits from proximity to significant oil and gas operations. Last year, OQ and Kuwait Petroleum International commissioned the OQ8 refinery, a $9 billion facility, with adjacent plans for the petrochemical development.

"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, declining to identify specific entities.

"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 undergoing organizational adjustments amid moderated demand in the chemicals sector. The company is majority-owned by Aramco, which is managing expenditures in response to prevailing oil market conditions.

OQ, held by Oman's sovereign wealth fund, maintains a diverse range of operations encompassing exploration, production, refining, chemicals, trading, hydrogen, and renewable energy.

Mamari noted that OQ is conducting preliminary conversations with international investors, including companies from the United States and Asia, concerning possible collaborations and equity participation in select major initiatives. He attributed growing interest to enhancements in both national and corporate credit assessments over recent years.

Oman, a modest oil producer outside OPEC, is pursuing economic diversification in line with regional trends, incorporating measures to encourage external investment.

Combined with budgetary improvements, these steps have enabled debt reduction and conversion of fiscal shortfalls into surpluses since 2022. This week, credit rating agency Fitch elevated Oman's status to investment grade.

Additionally, OQ is evaluating potential public offerings for up to two assets in 2026 as part of broader strategic considerations.