Salalah Free Zone · Sultanate of Oman
A conversion refinery on the Arabian Sea
A proposed 150,000 bpsd full-conversion refinery in the Salalah Free Zone, designed to turn Gulf and Omani crude into low-sulphur diesel, jet fuel and gasoline for East Africa, South Asia and Oman, with studied options to 300,000 bpsd.
Key figures
Phase 1 at a glance
- 150,000 bpsdNameplate capacity, one crude and vacuum train
- 141.6 kbpdSaleable products at full rate, with no fuel oil
- 8.4 mn bblOperating tankage in 28 tanks
- 9.5 USD bnPhase-1 fixed capital, P50 (P10 7.6, P90 12.8)
- 2034Target start of commercial operation
- 300,000 bpsdStudied capacity with a second train, subject to a decision gate
Screening estimates from the project basis (version 3.2, 24 October 2026), in real 2026 US dollars. Capacities are nameplate barrels per stream day (bpsd); kbpd is thousand barrels per day.
The proposition
Low-sulphur fuels for the Indian Ocean, refined on Oman’s Arabian Sea coast
Phase 1 is one full-conversion train that makes 10 ppm diesel, Jet A-1, gasoline, naphtha and LPG. Crude arrives by single-point mooring, and products leave by pipeline through the Port of Salalah.
- 01
An Arabian Sea location
Salalah lies outside the Strait of Hormuz, about four to five sailing days from East Africa and India. That gives crude and products route diversity, and a freight advantage over Gulf refiners of about USD 4–8 per tonne into East African ports.
- 02
Full conversion, middle distillates first
A two-stage hydrocracker, a delayed coker and three hydrotreaters convert the whole barrel: about 68.6 kbpd of diesel and 27.3 kbpd of jet fuel at full rate, and no fuel oil.
- 03
Built to grow in steps
About USD 0.2 bn of pre-investment, from crude lines sized for 300,000 bpsd to reserved rack and flare connections, keeps a second train open if the market evidence supports it.
Explore
The project in detail
All images on this website are concept visualisations from the project’s 3D model, not photographs.
Timeline
From development to first product
- 2027
Development and concept
Funded development from the first quarter; surveys, licensor and market studies; concept freeze at year end.
- 2028
Engineering and permits
Front-end engineering design, the environmental and social impact assessment, permits and commercial agreements.
- 2029
Investment decision
Final investment decision targeted for the second quarter; financial close and EPC award by year end.
- 2029–34
Construction
About four and a half years for a single train; marine and tankage ready for crude in late 2033.
- 2034
Commercial operation
Start of commercial operation targeted for the second quarter, with stabilised operation from 2036.
Target dates from the project basis. Each depends on the approvals and agreements that come before it.
The developer
Developed by Pioneering
Pioneering Project Development Company LLC is the Omani developer of the Salalah Refinery Project and the point of contact for the authorities, prospective partners, investors and lenders.
The phase-1 feasibility package, completed in October 2026, sets out the project and the development programme that Pioneering leads.