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 region of 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, provided that no other company will be permitted to establish or carry on any similar activity, that is the storage of crude oil and its derivatives during these periods and locations, it stated.

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 with lengths ranging from 5 to 7 km.

The plan will also cover the establishment of a plant for pumping oil to the tanks, said Yahia bin Said bin Abdullah Al Jabri, the chairman of Sezad board, after signing the agreement with Isam bin Saud Al Zadjali, the CEO of Oman Oil Company and Said bin Hamoud Al Maawali, the director of Ottco.

The establishment of Ras Markaz Crude Oil Storage Terminal is in line with the sultanate's economic diversification plan and will help Oman become an international centre for the storage of crude oil and its derivatives leveragingits particular geographic location alongside the Indian Ocean.

Moreover, the newly established terminal will give Oman an additional port for the export of crude oil, he stated.

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 costs for the crude oil tanks and $941 million covering the costs for the construction of the marine and other infrastructure facilities.
 
It will cover the construction of crude oil storage tanks with capacity of  26 million barrels.

Also during this phase, Ottco will execute 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 boundaries of the area, it stated.

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

The volume of investments for Phase Two tanks are likely to be around $700 million, of which $225 million will be spent on basic infrastructure facilities, it added.-TradeArabia News Service