By: Omanet

Oman Establishes Integrated Energy Supply Chain in Duqm

On October 27, 2025, the strategic development of Duqm as a regional energy logistics hub was significantly advanced with the creation of Oman's first integrated energy supply chain management company. The joint venture was formalized within the Duqm Special Economic Zone (SEZ) during the Duqm Economic Forum. The partners in this initiative are Energy Development Oman (EDO), a wholly state-owned energy holding company, and the Middle East division of the Japanese conglomerate, Sumitomo Corporation. The agreement was signed by Mazin al Lamki, Managing Director of EDO, and Masahiro Yoshimura, General Manager of Sumitomo Corporation.

Strategic Objectives and Economic Impact

EDO outlined that the partnership is a crucial step in strengthening Oman's national energy ecosystem. The venture is designed to develop local content, enhance industrial value chains, and nurture Omani talent. By leveraging Duqm's location at the crossroads of Asia, Africa, and the Middle East, the partners aim to transform supply chains from support functions into key drivers of economic growth. EDO stated that this will be achieved by linking investment, industry, and innovation within an integrated framework.

According to a special analysis by Omanet, this move solidifies Duqm's position as a pivotal global logistics and energy hub. It creates new opportunities in supply chain innovation, industrial value addition, and local talent development. For investors, the partnership highlights a strategic mitigation of risks associated with supply disruptions in oil and gas projects by ensuring just-in-time delivery efficiency.

Optimizing the Oil and Gas Supply Chain

The core function of the new company is the efficient coordination of Oil Country Tubular Goods (OCTG) for Oman's oil and gas sector. Sumitomo Corporation explained that the integrated supply chain management will streamline the procurement, storage, and just-in-time delivery of these critical well-construction materials to oil and gas fields, thereby minimizing operational downtime. Centralizing logistics through Duqm allows for cost-effective and reliable access to these materials, backed by local support.

The partnership builds on a long-standing relationship. Sumitomo Corporation Middle East has been a key supplier of OCTG to Petroleum Development Oman (PDO) for over two decades, while EDO, as the majority owner of resources in PDO's Block 6, is Oman's largest consumer of these tubular products. A dedicated storage facility has already been established in the Port of Duqm’s logistics zone as part of an optimized ‘Mill to Well’ supply model.

Operational Expertise and Future Diversification

The Duqm hub will utilize advanced software for inventory management, preventing unnecessary stockpiling and waste. Masahiro Yoshimura of Sumitomo emphasized that their contribution is operational and technical expertise, with the goal of building a world-class, highly efficient supply chain model in Oman. He reflected on the journey of their inventory operations, which began in Dubai over twenty years ago due to a lack of free zones in Oman, later moved to SOHAR, and is now firmly established in Duqm.

While the primary focus is on serving Oman's hydrocarbon sector, the partners have plans to explore diversification. Sumitomo and EDO intend to expand the partnership’s scope to include support for solar and wind energy equipment in the future. This potential expansion broadens the hub's role and aligns with Oman's renewable energy ambitions, offering a strategic avenue for investors to engage with the growing clean energy logistics market.