Oman Moves Forward With 200Mn Barrel Storage Hub

18 Jan 2013 Issue: 56 / 3

Oman has moved one step closer to realizing its vision of establishing itself as a major hub for storage and export in the Middle East with the signing of an MOU for the construction of a new 200mn barrel crude oil storage terminal near Duqm.

State-controlled Oman Oil Company (OOC) has joined forces with its downstream investment arm Takamul Investment Company to form the Oman Tank Terminal Company (OTTCO) – a new joint-venture tasked with building, owning and operating the new storage hub, set to be located in Ras Markaz near the port-town of Duqm. OTTCO, in which OOC holds a 90% stake, signed a Memorandum of Understanding (MOU) for the project with the Omani Oil and Gas Ministry on 13 January.

Speaking at the signing, Oil and Gas Ministry Under-Secretary Nasir al-Jashmi said the new terminal – potentially one of the world’s biggest – would serve as a second delivery/export point, which could help provide an alternative outlet for Oman’s crude in the event of any disruption at the Sultanate’s only other export terminal at the port of Mina al-Fahal, near Muscat. (CONTINUED - 668 WORDS)