Oman eyes top slot in oil storage

STRATEGIC ASSET: Ras Markaz aims at the goal of diversifying sources of the income

MUSCAT: The Sultanate is currently preparing to become one of the main centres in the world’s strategic and commercial storage of oil.

The Royal Decree No(5/2016) prepared the appropriate ground for that by adding Ras Markaz to the Special Economic Zone of Duqm (SEZD). As per the Royal Decree, the SEZD total area increased from about 1,745 square kilometres to 2,000 square kilometres to accommodate oil storage activities in Ras Markaz area, located about 70 kilometres from the centre of Duqm, which opens the door before the Sultanate to enter the global market for oil storage.

Ras Markaz station for oil storage aims at achieving the goals of the future vision of the Omani economy represented in diversifying sources of the national income.

Oman Tank Terminal Company (OTTCO), a subsidiary of Oman Oil Company (OOC) will implement the project, as its first phase includes the establishment of eight tanks with an estimated capacity of 650,000 barrels per tank, along with the establishment of floating platforms for the import and export of oil, and a marina for towing boats and undersea pipelines for 7 kilometre long for receiving and exporting oil, in addition to the establishment of oil pumping station into the tanks. The project also includes the construction of laboratories, control rooms and administrative offices of the company, as well as other facilities relating to safety and security facilities.

The technical characteristics of the project make it possible to mix different types of crude oil, as well as loading and unloading of ships in record times, allowing customers the possibility of saving the logistics costs as a competitive advantage. The offshore installations that will be implemented are capable of receiving various categories of oil tankers, such as Panamax mules Suezmax down to the huge supertankers.

Oman News Agency (ONA) learned that Duqm Refinery will get on its crude oil needs by transporting crude oil through a pipeline linking the refinery plant. Ras Markez will be linked with oilfields in the Sultanate.

Marine facilities that will be implemented for the import and export of oil will contribute to provide the crude oil needed by the refinery.

The station will start with a capacity of about 6 million barrels, but it will gradually rise in line with the needs of the company’s clients.

The area of the zone will allow increasing the storage capacity of the plant up to the level of 200 million barrels.

Ras Markaz oil storage station is one of the strategic projects that will be implemented in the current Five-Year Plan (2016-2020), targeting storage of all types of crude oil and in large quantities outside the Strait of Hormuz.

OTTCO looks forward to contributing to the expansion of crude oil storage operations and facilitate its distribution around the world in a manner that reinforces the government’s efforts for economic diversification The project contributes to the increase in the number of coming crude oil tankers to the Sultanate, and will contribute, in the long run, at making the Sultanate a major hub for the storage of crude oil in the region, in addition to OTTCO’s investments in Ras Markaz will enable the Sultanate to find an additional port for the export of crude oil, besides Mina Al Fahal.