OQ Chemicals, formerly known as Oxea, stands as a pivotal player in the global chemical sector, boasting a diverse portfolio of oxo products and derivatives. This company has carved out a significant niche in the chemical industry by providing key ingredients for a wide range of sectors, including the manufacturing of high-quality coatings, lubricants, cosmetics, pharmaceuticals, and plastics. With an unwavering commitment to sustainability, innovation, and excellence, OQ Chemicals has established itself as a trusted partner to businesses worldwide, contributing to the creation of products that enhance everyday life.

OQ Chemicals boasts a production capacity of 1.3 million tonnes, offering 70 products globally. It employs 1,400 individuals and generates €1.4 billion annually, operating across six production facilities.

1 . Historical Overview

OQ Chemicals' journey began as Oxea, a company with a rich legacy of chemical manufacturing excellence. Over the years, it underwent significant transformations, expanding its reach and capabilities through strategic acquisitions and investments in research and development. This evolution was marked by a significant milestone when it became part of the OQ Group, a global integrated energy company based in Oman. The rebranding to OQ Chemicals signified a new era of growth, underpinned by a broader vision and enhanced resources, aiming to leverage the synergies within the OQ Group to drive innovation and sustainability in chemical manufacturing.

2 . Products and Services

OQ Chemicals specializes in the production of oxo alcohols, aldehydes, acids, and esters, which are essential components in a vast array of products. The company's product line is renowned for its high quality and versatility, enabling applications across various industries. For instance, its oxo alcohols are crucial for producing plasticizers, which improve the flexibility and durability of plastics. Similarly, its acids and esters find applications in the production of paints, coatings, and adhesives, enhancing their performance and longevity.

OQ Chemicals is an industry leader in products like Propanol, 2-Ethylhexanol, Butanol, Butyl Acetate, and 1,3 Butylene Glycol. OQ Chemicals is also the market leader in synthetic fatty acids in the C3 to C9 acid range.

OQ Chemicals has announced a global price increase for 2-Ethylhexanol (2-EH) effective from March 1, 2024. The increase is set at EUR 100/MT in Europe and 110/MT in North America and Asia. This adjustment is attributed to rising feedstock propylene costs, persistent supply chain challenges, and increased transportation costs. Demand from the construction and automotive sectors, particularly in North America and Asia, remains strong. However, the European market is experiencing subdued demand due to contractions in the construction sector.

3 . Global Presence and Operations

With a global manufacturing footprint, OQ Chemicals operates state-of-the-art production facilities in key regions, including Europe, the Americas, and Asia. This strategic presence allows the company to efficiently serve its international customer base, ensuring timely delivery and adherence to the highest standards of quality and environmental safety. Its extensive distribution network, supported by expert technical and customer service teams, ensures that clients receive tailored solutions that meet their specific needs, regardless of their location.

4 . Commitment to Sustainability

Sustainability is at the core of OQ Chemicals' business philosophy. The company is dedicated to minimizing its environmental impact through continuous improvement in its processes, the efficient use of resources, and the reduction of emissions. By investing in advanced technologies and embracing circular economy principles, OQ Chemicals aims to not only comply with but exceed environmental regulations, setting new benchmarks in sustainable chemical production. Its sustainability initiatives are aligned with global goals, reflecting the company's commitment to contributing positively to the planet and society.

5 . Innovation and Research

Innovation is a key driver of OQ Chemicals' success. The company's research and development efforts are focused on creating new, sustainable chemical solutions that address the evolving needs of industries and consumers. By collaborating with customers, academic institutions, and research organizations, OQ Chemicals stays at the forefront of technological advancements, ensuring that it continues to offer competitive and innovative products and services.

6 . Looking Ahead

As OQ Chemicals moves forward, it remains focused on its mission to be a leader in the global chemical industry through excellence in innovation, sustainability, and customer service. The company is well-positioned to navigate the challenges of a rapidly changing market landscape, leveraging its strong foundation, expertise, and the collective strength of the OQ Group. With its sights set on further expanding its global presence and product portfolio, OQ Chemicals is poised for continued growth and success, making a lasting impact on the industries it serves and contributing to a more sustainable future.

The OQ Group's mid-year highlights for 2023 include achieving an EBITDA of USD 2.295 billion and a net profit of USD 1.092 billion in the first half of the year. These financial results were driven by increased oil production, higher prices, and consistent operational performance across business units. The report also mentions significant operational achievements, including the successful IPO of Abraj Energy Services, increased upstream daily production, and contributions to in-country value.

The strategic business units of OQ Group and their contributions are outlined as follows:

1. Upstream

   • Celebrated the inauguration of Bisat oil field.
   • Achieved a 10% increase in upstream production compared to H1 2022.

2. Commercial & Downstream

   • Recognized by the Ministry of Energy and Minerals (MEM) as a national champion for hydrogen transportation, leading the planning and development of an open access hydrogen network in Oman.
   • Secured Sharia-compliant financing agreements from 16 banks, forming Oman's largest Islamic financing syndicate, providing OQGN with access to USD 1.2 billion.
   • Signed an MoU with Hydrom for the conceptualization of the national hydrogen transportation and storage infrastructure.
   • Inaugurated OQ Ammonia in Salalah.
   • OOMCO successfully installed 10 electric vehicle superchargers in Oman and expanded retail outlets in the Kingdom of Saudi Arabia.
   • Oman Tank Terminal Company (OTTCO) safely received first shipments of crude oil.

3. Alternative Energy

   • Named as national champion for renewable energy.
   • The Green Energy Oman (GEO) project signed a Project Development Agreement, the Sub-usufruct Agreement, and Expansion Option Agreement with Hydrom, granting rights to develop and utilize the land for the next 47 years.
   • The Hyport Duqm project signed a PDA with Hydrom for land development rights for the next 47 years.