State-owned Oman Oil Company (OOC), the national petroleum investment company, and Kuwait Petroleum International Ltd (KPI) have signed a memorandum of understanding (MoU) to cooperate in the development of Duqm Refinery and Petrochemical Complex in Oman's Special Economic Zone in Duqm (SEZD) in the Governorate of Al Wusta, said a report.

The strategic partnership aims to draw investment into major industrial projects in Duqm, added the Oman Daily Observer report.

The MoU was signed on behalf of OOC by Hilal bin Ali al Kharousi, acting executive managing director of Duqm Holding and Bakheet al-Rashidi, CEO of Kuwait Petroleum International Ltd (KPI), at Crowne Plaza Hotel in SEZD.

Under the agreement, both parties aim to reach a partnership to own, manage and operate a refinery and at a later phase, a petrochemical complex in Duqm.

It is envisaged that both parties will own equal shares in a joint venture company for such purpose, it said.

A 900-hectare site has already been allocated for the project and the levelling has been completed as per schedule.

The final investment decision (FID) is expected to be taken by the second quarter of 2017, added the report.