Project Profile
Value: US$5.981 billion
Location: Ras Markaz in Duqm, Oman
Capacity: 200 million barrels of crude oil and products
Start-up: by the end of 2018
Oman Oil Company (through Oman Tank Terminal Co. (OTTCO)) is planning to build a large strategic crude storage facility.
The facility will be located near the new economic zone under development at Duqm on the sultanate’s east-central coast.
The execution of the two projects is thus closely intertwined, and progress to the terminal’s own construction phase is likely to await long-anticipated finalisation of commercial agreements relating to the refinery – the centrepiece of the envisioned downstream hub – now due in the fourth quarter.
Oman Tank Terminal Co. (OTTCO), a wholly-owned subsidiary of state-owned Oman Oil Co. (OOC), on July 5 signed a 40-year usufruct agreement with the Special Economic Zone Authority at Duqm (SEZAD), covering a 1,253-hectare (12.53 square km) site at Ras Markaz, around 70 km south of Duqm itself.
SEZAD is the government agency entrusted with managing the area in the central Al-Wusta governorate.
OTTCO will have exclusive rights to develop the land as a storage terminal for crude oil and derivatives for 20 years and sole right to develop such a facility in the SEZAD-managed zone as a whole for five years.
Marine facilities including floating platforms and piers, subsea pipelines, loading and unloading facilities, an oil-pumping plant, blending facilities and basic internal infrastructure will be installed – enabling the import and export of oil at a rate of around 100,000 barrels per hour.
The project will also encompass a new export terminal for the sultanate’s crude – currently dispatched from Mina al-Fahal, near Muscat – which will be transported through a planned new 360-km pipeline from the Main Oil Line.
Berthing facilities will be capable of handling Ultra Large Crude Carriers (ULCCs) and Very Large Crude Carriers (VLCCs).
The first phase of the project, with a capacity of 25 million barrels, is planned to be on stream by the end of 2018.
Costs
Phase 1: US$1.756 bn
Phase 2: US$925 mn
Phase 3: US$1.1 bn
Phase 4: US$1.1 bn
Phase 5: US$1.1 bn
Total: US$5.981 bn
Operators:
Oman Oil Company (through Oman Tank Terminal Company (OTTCO)) : Operator with 100% interest
Contractors:
Amec Foster Wheeler: Contract by the Oman Tank Terminal Company (OTTCO), for the front-end engineering design of the Ras Markaz Crude Oil Park Project in Oman.