Abu Dhabi's state-owned investment company International Petroleum Investment Company (Ipic) and the Oman Oil Company (OOC) have set up a joint venture to build a $6bn refinery and petrochemicals complex in Duqm, Oman.
The proposed project will be completed in five years. The refinery will process 230,000 barrels a day (bpd) in the first phase by 2017, which will be followed by the construction of petrochemicals facilities.
Nasser bin Khamis Al Jashmi, OOC chairman, said: "[The project] will play a vital role in supporting the oil and petrochemicals industries in Oman due to the strategic location of the Duqm area, adjacent to one of the world's key shipping trade routes."
Khadem Al Qubaisi, Ipic's managing director, said the project was a very important cooperative agreement between Oman and the UAE; relations between the two countries had been damaged by allegations of espionage at the beginning of 2012.