Plans for Oman's third oil refinery, at Duqm, look likely to be approved in the next few months. The refinery is part of ambitious plans, begun in 2006, to transform a remote fishing village into a major port and petrochemical complex with a population of 100,000 by 2025. The refinery plans were put on hold in November 2008 as the global economic crisis caused project finance to dry up. However, a year later Oman Oil Company signed a Memorandum of Understanding with Abu Dhabi's state-run International Petroleum Investment Company and a second feasibility study was launched, due to be submitted in the next three months. The Ministry of National Economy's Duqm project adviser, Maurice Girgis, speaking at the Oman Construction Summit in late January, said that all the indicators were good for the refinery, which is expected to have a capacity of 300,000 barrels/day, making it the largest in Oman. According to Mr Girgis, a final decision on the refinery will pave the way for progress to be made on plans for an associated petrochemical complex. He cited job creation as one of the main reasons for government investment in Duqm.

In late February the commerce and industry minister at the time, Mr Sultan, announced that the government had formed a new state-owned company, Oman Oil Refineries and Petroleum Industries. The new company has been created to manage two state-owned petrochemical companies, Oman Polypropylene and Aromatics Oman, both based in Sohar, together with the country's two oil refineries. The refineries, which are at Sohar and Mina al-Fahal in Muscat, were merged in 2007 to form the Oman Refineries and Petrochemicals Company. Oman Aromatics began commercial production in February 2010 and takes nearly 30% of its main feedstock from the adjacent Sohar Refinery. The plant has the capacity to produce 1m tonnes of aromatics a year, 80% paraxylene and the remainder benzene. Oman Polypropylene also takes its feedstock from Sohar Refinery. The plant, which has the capacity to produce 340,000 tonnes/year, began production in mid-2006. According to Mr Sultan, the purpose of the restructuring was to improve profitability, and create improved job opportunities for locals to work in the industry. The announcement was made just a week before violent protests calling for more jobs were held in Sohar, where three of the four plants are located.