Texas oil tycoon and Saudi partners plan $5B refinery outside Hormuz

A Texas oil tycoon is joining forces with Saudi partners to build a $5 billion oil refinery outside the Strait of Hormuz and is in the final stages of deciding on a site.

The Mera Oil consortium has shortlisted three sites for the project in the Gulf of Oman, which will have a capacity of 200,000 barrels per day and will have direct access to international shipping routes.

The consortium was formed by Marc W. Gunderson’s Fort Worth-based MWG Enterprises, along with a unit of Saudi Arabia’s AHQ Group and the Patel Family Office.

Once the site and its host jurisdiction are confirmed, the project is expected to move into final site due-diligence, with mechanical completion expected at the end of 2029, The National reports.

“Three years of evaluation across the region and two years of detailed engagement with three outstanding locations have brought us to a clear decision point,” Gunderson said.

The development comes as Gulf states are expediting projects to build pipelines and export infrastructure to bypass the Strait of Hormuz amid continued disruption to shipping.