Oman’s Ministry of Energy and Minerals signed an agreement with Oman Tank Terminal Company (OTTCO) for the development of a new pipeline which will export Oman blend crude oil at the Ras Markaz crude oil terminal in the port town of Duqm, Oman.
OTTCO, a wholly owned subsidiary of the OQ Group (Oman’s international integrated energy company), has an ambition to create world-class oil-storage network foundations, both within and outside of Oman.
The agreement between the Ministry of Energy and Minerals and OTTCO establishes a coordinated approach to develop, build and operate the new oil pipeline, says the Ministry of Energy and Minerals.
To form the new pipeline, it will be connected to OTTCO infrastructure to transfer, store and export Oman blend crude oil from the Ras Markaz crude oil terminal, owned and operated by OTTCO in the Special Economic Zone at Duqm.
The pipeline will expand the energy sector by meeting expected growth in the Special Economic Zone at Duqm, and the energy industry in the sultanate. The project will enhance support of Oman crude oil as a benchmark and as the Ras Markaz crude oil terminal to perform as a regional hub in alignment with OQ Group and OTTCO’s growth strategy.
The terminal will provide oil handling, storage, import and export services for refineries and petrochemicals downstream projects in the Special Economic Zone at Duqm.
OTTCO, the project developer, will now conduct specific studies and progress with the execution and implementation of this ground-breaking project, including facilities which may potentially be required for customers, producers and traders of Oman export blend crude oil. As an experienced operator, OTTCO will additionally provide all services related to the operation and maintenance of the new facilities and assets.
The Ras Markaz crude oil terminal is OTTCO’s landmark project and has been chosen for its strategic location and suitability in receiving giant oil tankers, in addition to its proximity to the world maritime routes. The first phase of the terminal is currently under construction, with the expectation of its trial operation to be conducted in winter of 2022.
