The infrastructure of the first phase of the oil storage project at Ras Markaz in Duqm, Oman is ready to operate by the second quarter (Q2) of 2022, said the director-general of the project.
The Ras Markaz agreement provides for a storage capacity of 26.7 million barrels of oil in the first phase, Salim Marhoon Al Hashmi was quoted as saying in an Oman News Agency (ONA) report.
The company will increase its capacity in tandem with the growth of demand from investors, said Al Hashmi.
The project consists of two streams: The first caters to maritime business. It is completed and it comprises an import-export floating station situated 7 kilometres from the beach, in addition to two 42-inch pipelines, Al Hashmi explained.
He added that the second stream (80% over) features a variety of civil tasks, mountain demolishing, oil pumping systems, water treatment, installing tanks, building a power grid and adding associated systems.
He added that Ras Markaz station has been connected via an 80-km pipeline and that the facility constitutes a source of supplies for Duqm Refinery, where 8 mega tanks are dedicated for the purpose.
The project has a construction area of 10 square kilometres, while the total area stands at 40 square kilometres, which means the facility has a storage capacity of 200 million barrels of oil.
The floating terminal can receive very large crude carriers (VLCC) from around the world and it has been connected with four main stations to pump crude upwards, said Al Hashmi.
Al Hashmi pointed out that the Special Economic Zone at Duqm (Sezad) granted OTTCO a 40-year usufruct rights to set up an oil storage facility at Ras Markaz with effect from the date of signing the said contract in July 2017.
Al Hashmi said that OTTCO envisages making Ras Markaz the largest oil storage facility of its kind the Middle East and a global hub in the Arabia Sea and Indian Ocean zones.
The project will generate 130 direct and indirect jobs, 90 of which will be occupied during the period of operation, said Al Hashmi, noting that more employment opportunities will be provided as the facility’s capacity keeps expanding.
Al Hashmi said that OQ Group and Aramco of Saudi Arabia had signed a memorandum of understanding for the storage of their products at Ras Markaz, besides exploring other areas of cooperation related to the import, procurement, production and storage of crude and petroleum products at Duqm Refinery and Ras Markaz.
Oman is currently leaning heavily on Mina Al Fahal for the export of crude oil, so the Ras Markaz station will add a strategic dimension to outbound crude export, said Al Hashmi, adding that the facility’s existence outside the Strait of Hormuz area will encourage many investors to store oil there and engage in import, export and oil blending operations.
The project, undertaken by Oman Tank Terminal Company (OTTCO), seeks to manage and maintain an integrated network of tanks for different types of energy derivatives in the Sultanate of Oman, notably in Duqm.
Send us your company’s news today and they could be featured on ABC’s Community News tommorow.
