Oman's Duqm oil storage station phase 1 to cost USD 1.8 bln

The Special Economic Zone Authority in Duqm has granted Oman Tanker Company (OTTCO), which operates under Oman Oil, the right to use land for the construction of Ras Al Markaz oil storage station around 70km south of Duqm.

According to the agreement, the storage capacity during the first phase of the station will be around 26 million barrels. This phase will be implemented over a period of ten years from the date of the signing, with the company increasing its capacity in accordance with demand growth.

The agreement gives OTTCO the exclusive right to store crude oil and its derivates in Ras Al Markaz for a period of twenty years.

Under the terms of the agreement, OTTCO will develop a total of five phases, either on its own, through an investment alliance, or by attracting and setting third party investments.

The establishment of the oil storage station in Ras Al Markaz comes in line with the Sultanate’s economic diversification plan, as well as in line with plans to make the region a global center for crude oil storage. Furthermore the station enables the Sultanate to find an additional outlet for the export of crude oil.

Oman News Agency