OQ (company) explained

OQ
Type:Government-owned
Founder:Government of Oman
Location City:Muscat
Location Country:Oman
Key People:Mulham Basheer Al Jarf (Chairman)
Said Abdallah Al Hatmi (Vice Chairman)
Talal Al Awfi (Group CEO)
Industry:Oil and gas
Owner:Government of Oman

OQ, formerly known as Oman Oil Company, is an energy investment company headquartered in Muscat, Oman. It is a wholly owned subsidiary of the Government of Oman through the Oman Investment Authority.

OQ is involved in sectors such as infrastructure and transportation for energy, oil refining, petrochemical production, oil marketing, and power generating. It operates in 17 countries.[1] [2]

As of June 2022, OQ produces more than 218,000 barrels of oil per day.[3]

History

1982 to 2000

OQ was founded as the Oman Refinery Company in 1982.[4]

In 1996, Oman Oil Company was established by the Government of Oman.[4] [5]

A separate company for gas, named Oman Gas Company, was established in 2000.[4]

2002 to 2010

In 2003, Oman Oil Marketing Company (Oman Oil) was founded.[4]

Oman Trading International, a trading division, was established in 2006.[4]

Oman Refineries and Petrochemicals Co. was created in 2007 with the merger of Oman Refinery Company and Sohar Refinery Company.[4]

In 2009, Oman Oil Company Exploration & Production was founded.[4]

In 2010, the Programme Apple was initiated which aimed to integrate Oman Refineries and Petrochemicals Company, Oman Polypropylene Co., and Aromatics Oman Ltd.[4] In the same year, Oman Oil Company signed a joint-venture with JBF Industries to erect a Terephthalic acid-PTA plant.[6]

2011 to 2020

Following the initial phase of integration, Orpic was founded in 2011.[4]

In 2013, OQ acquired a German-based company, OXEA.[7] OOC signed an exploration and production agreement with BP in 2013, to further develop the Khazzan-Makarem gas field.[8]

In 2014, construction of the Sohar Refinery Improvement Project started.[9]

In 2016, OOC secured a $4 billion loan to invest into various projects over the coming years.[10] In the following year OOC signed a memorandum of understanding with Spain’s Eni.[11]

In 2017, a joint venture between Kuwait Petroleum International and OQ was announced for the development of Duqm Refinery & Petrochemical Complex.[12] In the same year, OQ's subsidiary, Oman Tank Terminal Company (OTTCO), began construction of a crude oil storage terminal near Raz Markaz.[13]

In 2018, Oman Oil Company sold 10% of its 40% stake in the Khazzan gas field to Malaysia's Petronas and signed two concessions/agreements with Occidental Petroleum (Oxy).[14] [15] [16]

In November 2018, OOC announced that the company will be merged with refining company Orpic, which had been created in 2011 to operate Oman's downstream assets.[17]

The NAKHLA programme was initiated in 2018.[18] The construction of the Duqm Refinery began the same year, as did the groundwork for the Salalah LPG and Salalah Ammonia Projects.[19]

Orpic Group merged with Oman Oil Company in 2019, and the combined business was given the moniker OQ.[20] Some people believe that OQ is an acronym for "Oman Qaboos" and some believe it is acronym for "Oman" & "Quality", however one cannot find any details about initials "OQ" from their official website.

In 2019, Oman Gas Company was incorporated into the OQ brand and was renamed OQ Gas Networks (OQGN).[21] [22]

In January 2020, the State Budget allocated funds to assist OQ Subsidiary, Oman Tank Terminal Company (OTTCO), with the Ras Markaz crude oil storage terminal that would become an international storage hub and strategically locate Oman in the Indian Ocean.[23] [24] Funds were also placed from the budget into the Liwa Plastic Industries Complex, a OQ investment. In May 2020, the commissioning phase commenced.[25]

Production increases were planned for OQC in Germany for 2021. The OQ announced in May 2020 the intention to add 30% total production for the coming year.[26]

In June 2020, Oxea was fully integrated into a group of eight other companies to create OQ, after the full process had begun in 2018.[27] [28] [29]

In August 2020, OQ and the Ministry of Heritage and Tourism collaborated to announce the opening of a tourist centre at the archaeological site in the Wilayat of Al Dibba.[30] The OQ also signed a Memorandum of Cooperation (MoC) with the Minister of Education and Jusoor Foundation to manage and run the Liwa Science and Innovation Center.[31]

2021 to present

In January 2021, Group CEO of OQ, Musub al Mahrouqi submitted his resignation which would be effective as of March that year. In response, the Board of Directors appointed the position of GCEO to Talal bin Hamid al Awfi to take over the responsibilities starting immediately.[32] [33] Head of Procurement at OQ is Ahmed Al Azkawi.[34]

OQ sold its stake in Bina refinery in March 2021, eventually giving its partner Bharat Petroleum Corporation Ltd. (BPCL) full control of BORL.[35] [36]

In September 2021, an announcement was made that OQ was considering sale of its German subsidiary, Oxea, a chemicals business, for about $3 billion. OQ Chemicals has two manufacturing sites in Germany that make a range of oxo intermediates and derivatives.[7] In October 2021, OQ, Marubeni Corporation, Linde, and Dutco decided to explore the possibility of producing green ammonia and green hydrogen in Salalah.[37] In December 2021, Liwa Plastics Industries Complex (LPIC) project in Sohar was inaugurated.[38] The work on the project started in May 2020.[39] With two polyethylene facilities, it has the capacity to produce 880,000 tonnes of linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE) annually.[39] Saudi Basic Industries Corp (SABIC) and OQ signed a Memorandum of Understanding (MoU) to study the possibility of building a petrochemical project in the Duqm Free Zone.[40] OQ and TotalEnergies formed Marsa LNG, an integrated energy company, in December 2021, which began producing LNG from Block 10 in January 2023 with a 33.19% interest.[41] [42] [43] Shell also signed a concession agreement to operate 53.45% of Block 10.[44]

In May 2022, Trend Micro and OQ inked a Memorandum of Understanding (MOU), under which Trend Micro would secure OQ's digital infrastructure from cyber threats.[45]

In July 2022, OQ signed an agreement with the Ministry of Higher Education, Research, and Innovation to fund the construction of vocational colleges with an allocation of OMR 200,000.[46]

A contract for the exploration and development of natural gas resources in Block 11 was signed by OQ, Shell and TotalEnergies in September 2022. Shell has a 67.5% stake, OQ 10% and TotalEnergies 22.5%.[47] [48] The companies have previously signed a similar agreement for neighbouring Block 10.

In June 2023, OQ signed an agreement with DEME and Hydrom for the project development of Hyport Duqm for the engineering of 150 square metres and the construction of the renewable energy and downstream sites required for green hydrogen production and green ammonia plants.[49] [50] [51]

In August 2023, OQ signed LNG supply agreements with Shell. OQ is expected to supply 0.8 million tonnes per year of LNG to Shell for 10 years from 2025 and 0.75 million tonnes per year for 4 years from 2026.[52] [53]

Operations

The OQ is invested into different main sectors through its network of subsidiaries. These include petrochemicals, refining and marketing, metal and mining and services.

OQ Company runs operations via four main subsidiaries:[54]

The companies international assets are under direct control of the OOC, which has an international investment unit. These include:[55]

Divisions

Feed, food, and agriculture

Feed, food and agriculture division, covers areas such as animal nutrition, crop protection, herbicide, pesticide and its handling, and human nutrition.[56]

Flexible and rigid packaging

OQ provides flexible packaging for transportation, retail spaces, and for consumers' cupboards.[57] Some other consumer-facing industry sectors, include cosmetics, electronics, pharmaceuticals, and sporting goods.[57]

OQ provides rigid packing products for food, consumer goods, houseware, electronics and industrial packaging.[58]

Infrastructure and construction

OQ is active in research and development (R&D) of different products.[59] OQ is utilizing its research to develop infrastructure in sectors such as geosynthetics, pipes system, tanks and fittings.[59]

Lubricants and functional fluids

OQ provides carboxylic acids, polyols, synthetic polyol ester base oils, and amines.[60]

Paints and coatings

OQ's n/iso butyl acetate is used in different applications such as automotive, aerospace, concrete and wood finishes, or as nail polish in cosmetics. Another product, TMP, is used for alkyd and polyester coatings resins and for UV curable alkyd resins, while NPG is used in the production of powder coatings for architectural, automotive, appliances, lawn and garden equipment.[61]

Pharmaceutical and medical care

OQ produces biocidal alcohols which are used in hand sanitizers and as a specialty amines.[62]

See also

Notes and References

  1. Web site: 2021-11-20 . OQ posts $777mn profit for H1, revenues surge to $10bn . 2023-03-29 . Muscat Daily . en.
  2. Web site: Rahman . Fareed . 2021-12-07 . Saudi Aramco's trading arm signs agreement with Oman's OQ on new opportunities . 2023-03-29 . The National . en.
  3. Web site: OQ Group produces 218,000 barrels per day of oil. Times of Oman.
  4. Web site: Our Journey & History | OQ. oq.com.
  5. News: Oman Oil Company Appoints CEO . Zawya . 2004-08-30 . 2011-01-06 . https://web.archive.org/web/20110617080713/http://www.zawya.com/story.cfm/sidZAWYA20060620080151 . 2011-06-17 . dead .
  6. Web site: Oman Oil Sign Joint Venture Pact. February 1, 2010. JBF Industries. January 24, 2019.
  7. News: Oman Considers Sale of $3 Billion German Chemicals Unit . Bloomberg.com . 22 September 2021 .
  8. Web site: BP and Oman Agree to Jointly Develop a Gas Field, With Bigger Goals in Mind. December 16, 2013. New York Times. January 24, 2019.
  9. Web site: Sohar Refinery Improvement Project - Hydrocarbons Technology. www.hydrocarbons-technology.com.
  10. Web site: UPDATE 1-Oman oil company PDO raises $4 bln of project financing. June 29, 2016. Reuters. January 24, 2019.
  11. Web site: Form 20-F. The New York Times. January 24, 2019.
  12. Web site: Duqm Refinery and Petrochemicals Project - NS Energy.
  13. Web site: Ras Markaz Crude Oil Storage Terminal - Hydrocarbons Technology. www.hydrocarbons-technology.com.
  14. Web site: Crude Prices Lose Steam on Rising Stocks—Energy Journal. October 19, 2018. The Wall Street Journal. January 24, 2019.
  15. Web site: Malaysia's Petronas Set to Buy 10% Stake in Giant Oman Gas Field. October 28, 2018. The Wall Street Journal. January 24, 2019.
  16. Web site: Oman signs exploration agreements with Occidental Petroleum. December 16, 2018. Reuters. January 24, 2019.
  17. Web site: Oman Oil Company, Orpic to merge. November 19, 2018. The Oil and Gas Year. January 29, 2019.
  18. Web site: Oman to merge oil, petrochemical firms under OQ brand | Argus Media. December 18, 2019. www.argusmedia.com.
  19. Web site: Salalah Liquefied Petroleum Gas Project, Dhofar, Oman. www.hydrocarbons-technology.com.
  20. Web site: Hopes Dashed For a Middle East Markets Bonanza. December 16, 2018. The Wall Street Journal. January 29, 2019.
  21. Web site: OQGN . 2023-06-28 . oqgn.com.
  22. Web site: OQGN launches its new corporate identity . 2023-06-28 . Times of Oman . en.
  23. Web site: Prabhu . Conrad . $25bln worth strategic projects to fuel Omans economic growth . 2023-06-29 . www.zawya.com . en.
  24. Web site: 2020-06-18 . Oman steps up plan for Middle East's biggest oil-tank farm . 2023-06-29 . Gulf Times . en.
  25. Web site: Oman's $6.7bn petchem project enters commissioning phase . 2023-06-29 . www.tradearabia.com.
  26. Web site: Prabhu . Conrad . Oman-owned chemicals giant eyes new capacity growth in 2021 . 2023-07-12 . www.zawya.com . en.
  27. Web site: OQ completes integration of international assets . 2023-07-12 . www.tradearabia.com.
  28. Web site: 2020-02-14 . Oman's oil and gas sector after Sultan Qaboos . 2023-07-12 . Oil & Gas Middle East.
  29. Web site: 2020-06-12 . Middle East petrochemical consolidations pick up pace Argus Media . 2023-07-12 . www.argusmedia.com . en.
  30. Web site: OQ, office of minister of state and governor of Musandam ink MoC to finance social investment projects.
  31. Web site: OQ, ministry sign pact to manage, operate Liwa Science & Innovation Centre . 2023-09-08 . Times of Oman . en.
  32. Web site: Oman State Oil Firm OQ Names Talal Al Awfi as Acting CEO . 2023-08-15 . news.bloomberglaw.com . en.
  33. Web site: 2021-01-27 . OQ names new Acting Group CEO . 2023-08-15 . Oman Observer . en.
  34. Web site: Major oil, gas companies join efforts to boost level of Omanisation . 2023-08-15 . businessgateways.com . en-gb.
  35. Web site: 2021-03-21 . Privatisation-bound BPCL acquires OQ's stake in Bina refinery . 2023-11-07 . Business Standard.
  36. Web site: 2021-02-11 . BPCL takes control of Bina Refinery; buys out Omani company's stake at ₹27 a share . 2023-11-07 . BusinessLine . en.
  37. Web site: Marubeni Signs Joint Development Agreement for Green Hydrogen & Green Ammonia Production Infrastructure in Oman. www.marubeni.com.
  38. Web site: Oman's OQ to unveil the $7bn LPIC project on December 20. Polymerupdate.com.
  39. Web site: Oman to inaugurate $7bn Liwa Plastics project next week | Argus Media. December 12, 2021. www.argusmedia.com.
  40. Web site: Saudi Arabia's SABIC, Oman's OQ to explore petrochemical project in Duqm. Dania. Saadi. December 8, 2021. www.spglobal.com.
  41. Web site: Ugal . Nishant . 2023-01-20 . Shell starts gas production from prolific Middle East onshore asset . 2023-11-17 . Upstream Online Latest oil and gas news . en.
  42. Web site: TotalEnergies, Oman's OQ set up LNG company . 2023-11-17 . www.naturalgasworld.com.
  43. Web site: Rani . Archana . 2022-03-01 . Oman plans to award oil and gas blocks to boost production . 2023-11-17 . Offshore Technology . en-US.
  44. Web site: Saadi . Dania . 2021-12-21 . Shell, other partners to develop gas from Oman's Saih Rawl field with startup in 2 years . 2023-11-17 . www.spglobal.com . en.
  45. News: . 31 May 2022 . Trend Micro reinforces strategic partnership with OQ . Times of Oman .
  46. Web site: OQ and Ministry of Education sign two agreements. Press. Release. www.zawya.com.
  47. Web site: 2022-09-15 . Oman Inks Deal With Shell, OQ, And TotalEnergies For Gas Exploration In Block 11 . 2023-11-17 . Forbes ME . en-US.
  48. Web site: Devarasetti . Hasini . 2022-09-16 . Oman signs exploration deal with Shell for Block 11 . 2023-11-17 . Offshore Technology . en-US.
  49. Web site: Hydrom awards $10bn contracts to develop new hydrogen projects . 2023-10-05 . en-US.
  50. Web site: 2023-06-21 . Oman's Hydrom inks two agreements for green hydrogen production . 2023-10-05 . www.zawya.com . en.
  51. Web site: Benny . John . 2023-06-22 . Oman's Hydrom signs agreements worth $10bn to develop green hydrogen plants . 2023-10-05 . The National . en.
  52. Web site: Oman LNG pens LNG supply deals with Shell, OQ . 2023-10-05 . www.naturalgasworld.com.
  53. Web site: Kindi . Hibba al . 2023-08-31 . Oman LNG signs pacts to supply LNG to Shell and OQ Trading . 2023-10-05 . www.zawya.com . en.
  54. Web site: Takamul Investment Company SAOC. Oman Oil Company. January 29, 2019.
  55. Web site: China Gas Flares Up. January 5, 2012. The Wall Street Journal. January 29, 2019.
  56. Web site: Feed, Food & Agriculture | OQ. oq.com.
  57. Web site: Flexible Packaging Material Solutions | OQ. oq.com.
  58. Web site: Rigid Packaging & Durables Material Solutions | OQ. oq.com.
  59. Web site: Infrastructure & Construction | OQ. oq.com.
  60. Web site: Lubricants & Functional Fluids | OQ. oq.com.
  61. Web site: Paints & Coatings | OQ. oq.com.
  62. Web site: Pharmaceutical & Medical Care | OQ. oq.com.