Regional News

Ottco to set up storage terminal

August 2017

The Special Economic Zone Authority at Duqm (Sezad) has granted Oman Tank Terminal Company (Ottco) a usufruct right to construct a crude oil storage terminal at Ras Markaz, about 70 km south of Duqm in the sultanate.

Ottco is one of Oman Oil Company’s subsidiaries and the investment arm for the sultanate in the energy sector.

As per the agreement, Ottco will have exclusive rights for the storage of crude oil and its derivatives in the Ras Markaz area for a period of 20 years and for five years in Sezad as a whole.

The agreement, which will last for 40 years, stipulates  the development of the Ras Markaz area under a five-year plan to cover the construction of tanks for the storage of crude oil and its derivatives, establishment of floating platforms and piers for the import and export of crude oil and its derivatives, and a pier for tug boats under water pipelines to receive and export oil.

The plan will also cover the establishment of a plant to pump oil to the tanks, said  Yahia bin Said bin Abdullah Al Jabri, the chairman of Sezad board, adding that  the newly established terminal will give Oman an additional port for the export of crude oil.

According to Sezad, the total investment for the development of Phase One of the new terminal is likely to reach $1.7 billion, inclusive of $815 million invested to cover the cost of crude oil storage tanks, with capacity of  26 million barrels, and $941 million covering the cost for the construction of the marine and other infrastructure facilities.

During this phase, Ottco will also build marine facilities for importing and exporting crude oil with a handling capacity of 100 barrels per hour, apart from the onshore pumping plant and the basic internal infrastructure within the area, it stated.

According to Sezad, the massive storage facility will come up on a 12.5-million-sq-m area.

The investments in tanks to be installed during Phase Two are likely to be around $700 million, of which $225 million will be spent on basic infrastructure facilities.

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