Our refinery and petrochemical complex on Oman’s east coast, is perfectly positioned near these growing demand centres. Europe’s refinery closures also present an opportunity, and we can cater to both East and West. When looking long-term, it’s important not to take a view that there is only one fixed export market, but rather to remain flexible to changing conditions. For example, initially, we built our refinery to meet strict European specs, but we have found that nearly 50% of our products are now landing much closer to home, in East Africa and the east and west coast of India. Despite governance challenges in Africa, the continent’s rapid urbanization and population growth are driving energy demand. This relentless aspiration for better living standards will continue to push demand higher.
Geopolitical challenges to shipping routes?
We should be incredibly proud of how resilient our industry is. This is evident in the stability of prices, despite significant supply disruptions. The market has consistently found ways to adapt. For example, we’ve just shipped another one million barrels cargo of diesel to France. Chokepoint disruptions like the Suez Canal can make it difficult for smaller cargoes to reach markets competitively. This means we need to be capable of loading larger parcels so our refined products can compete in distant markets that we might not have reached 5 or 10 years ago.