Pact signed to develop new pipeline project to export Oman crude oil

Business Sunday 28/August/2022 15:15 PM
By: Times News Service
Pact signed to develop new pipeline project to export Oman crude oil

Muscat: The Ministry of Energy and Minerals and Oman Tank Terminal Company (OTTCO), a subsidiary of OQ Group, signed today a framework agreement for cooperation to develop, build and operate a new pipeline that will be connected to transfer, store and export Oman’s crude oil from the Ras Markaz crude oil storage terminal in the Special Economic Zone at Duqm (Sezad).

The agreement was signed at the Ministry of Energy and Minerals by Salim bin Nasser Al Aufi, Minister of Energy and Minerals, Talal bin Hamed Al Awfi, OQ Group CEO and Hilal bin Ali Al-Kharusi, CEO Commercial and Downstream at OQ and Chairman of the OTTCO Board of Directors in the presence of Ard Van Hoof, CEO of OTTCO and other senior officials from the ministry.

The agreement enables expansion in the energy sector by meeting the expected growth in Sezad and the energy industry in the Sultanate of Oman. It will also support Oman’s crude oil as a benchmark and for the Ras Markaz Terminal to become a regional hub in alignment with OQ and OTTCO’s growth strategy.

The terminal will provide crude oil handling, storage, import and export services for refineries and petrochemicals downstream projects in Sezad and to serve the market needs of customers and other stakeholders.

OTTCO will conduct detailed studies and move forward with the execution and implementation of this project. It will provide facilities that might be required for customers, producers and traders of Oman’s crude oil. In addition, OTTCO will also provide all services related to the operations and maintenance of the facilities and assets.

Oman Tank Terminal Company is an existing company in the OQ group of Companies, established and an independent service provider for developing and operating commercially liquid bulk terminals in the Sultanate of Oman with its landmark project being the Crude Oil Terminal at Ras Markaz which has been selected for its strategic location and suitability in receiving giant oil tankers, as well as its proximity to the world maritime routes. The company is currently completing the first phase of the terminal and is expected to commission its trial operation later in the year.