Government Accelerates Resource, Plant, and Logistics Cooperation with Oman to Stabilize Supply Chains

Minister Kim Jungkwan Holds Virtual Meeting with Oman Economic Free Zone Chairman
Requests Stronger Cooperation for Stable Crude Oil and Naphtha Supply
Seeks to Resolve Logistics Challenges via Duqm Port and Resume Economic Cooperation Committee

Kim Jung-kwan, Minister of Trade, Industry and Energy, is having a video conference meeting with Qais bin Mohammed Al Yousef, Chairman of the Oman Economic Free Zone Authority, on the 1st at his office in the Government Seoul Building. Ministry of Trade, Industry and Energy.

The government has begun expanding economic cooperation with Oman in response to instability in the Middle East. The plan is to utilize Oman, which is located outside the Strait of Hormuz, as a supply base for crude oil and naphtha as well as an alternative logistics hub, thereby strengthening energy supply stability and supply chain resilience.

On June 1, Kim Jungkwan, Minister of Trade, Industry and Energy, held a virtual meeting with Qais bin Mohammed Al Yousef, Chairman of the Oman Economic Free Zone Authority, to discuss ways to expand cooperation in resource supply, plant project orders, and logistics.

Recently, the government has been diversifying crude oil import routes away from a Middle East-centric approach to include the United States, Africa, and Central and South America. At the same time, within the Middle East, efforts are focused on securing supply chains that do not pass through the Strait of Hormuz. Oman, which is situated on the Arabian Sea outside the Strait of Hormuz, is regarded as a potential alternative logistics and energy hub in times of crisis.

During the meeting, Minister Kim highly appreciated Oman’s role as a key energy partner for Korea, noting its contribution to the stable supply of crude oil and naphtha. He also requested cooperation to ensure that the supply plans agreed upon during the visit of the Special Envoy for Strategic Economic Cooperation in April are implemented without delay.

The two sides also discussed ways to expand Korean companies’ participation in plant projects in Oman. Minister Kim referred to major projects undertaken by Korean firms, such as the Duqm Refinery and the Mana Solar Power Plant, and requested continued interest and support so that Korean companies can actively participate in new projects as well.

Logistics cooperation was another major agenda item. The Ministry of Trade, Industry and Energy explained that Korean companies are experiencing procedural difficulties such as customs refunds and border quarantine when transporting cargo via Duqm Port to Saudi Arabia, and requested the simplification of logistics procedures.

Both sides agreed on the need to promptly resume the Korea-Oman Economic Cooperation Committee, which has been suspended since 2016, and decided to consult on the timing and agenda for its reconvening. The government plans to use the resumption of the Economic Cooperation Committee as an opportunity to further expand cooperation in resource security, plant projects, and logistics.

Minister Kim stated, “Oman, with its geographical advantage of being outside the Strait of Hormuz and its abundant energy resources, is a key Middle Eastern partner with which Korea must strengthen cooperation. We will use the resumption of the Economic Cooperation Committee as an opportunity to further expand collaboration in resource security, plant projects, and logistics.”

This content was produced with the assistance of AI translation services.