Ottco to set up storage terminal
01 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.
- Chinese win $709m Kuwait contract
- Ottco to set up storage terminal
- JEC to build food storage facilities
- Case appoints new distributor for Bahrain
- Kanoo wins Bobcat accolade
- OCEC precinct to open in mid-2018
- Doha Metro progresses
- Siemens to supply major Kuwait power plant
- Oman to build 17 tourism stations on key highways
- In brief
- Rapid Access to get 334 Genie lifts
- Isa Town bridge gets go-ahead
- Civil works finished at power plant
- World Cup builders mull Qatar exit
- $151m workers complex planned
