New landmark: ‘This step opens up wider horizons for investing in other phases of the project’, Hilal al Kharusi
MUSCAT, JAN 10
OQ, a global integrated energy group, announced today that it has successfully received the first shipment of crude oil at Ras Markaz Crude Oil Storage and Export Terminal, which is being carried out by its subsidiary Oman Tank Terminal Company (OTTCO).
This comes as part of the efforts exerted by OQ to take advantage of Oman’s strategic location by finding alternatives to storing crude oil outside the Strait of Hormuz and then exporting it to regional and international markets. This provides oil exporters with an opportunity for finding alternative clients. Additionally, this project will meet the demands of the projects that are being implemented in the Special Economic Zone at Duqm (SEZAD).
On this occasion, Hilal bin Ali al Kharusi, CEO of Commercial & Downstream Sector at OQ & Chairman of the OTTCO Board of Directors, said: "Our success in receiving the first shipment of crude oil at Ras Markaz Crude Oil Storage and Export Terminal opens up wider horizons for moving forward towards executing other phases of this strategic project, which is considered the biggest of its kind in the Middle East region."
Al Kharusi added: "Ras Markaz Crude Oil Storage and Export Terminal, which was established according to highest international standards with investments from the Omani government, is considered one of the biggest investment projects in the Sultanate. OQ Group has made great efforts to carry out this project as part of its strategy aimed at strengthening the investment sectors."
He indicated that basic construction works of the first phase have been completed and that the commissioning of the terminal would encourage investors from across the world to invest in other phases of the project. As a result, the terminal would reach its maximum storage capacity of about 200 million barrels.
Al Kharusi pointed out that the project provides more security guarantees; particularly since it is located outside the Strait of Hormuz. As such, it is considered a successful alternative for countries in the region to store and export oil to regional and international markets. He explained that the first shipments will meet the crude oil demands of Duqm Refinery.
For his part, Salem Marhoon al Hashemi, General Manager of Ras Markaz Terminal, expressed his happiness for the successful commissioning of commercial operations at the project and the reception of the first shipment of crude oil.
Al Hashemi said: "The commissioning of the terminal reflects our success in testing the efficiency of basic construction works at the first phase of the project. We have received the first crude oil shipment and we will send it to the Duqm Refinery, which will be completed in the first quarter of 2023."
"The capacity of Ras Markaz Crude Oil Storage and Export Terminal is subject to technical considerations and the preferences of investors. The basic construction works of the first phase included all the work requirements of crude oil storage terminals in the world according to the approved international standards. The terminal will be ready to receive 26.7 million barrels of crude oil. More storage tanks could also be added to meet any further investment demands," he added.
It is worth mentioning that Ras Markaz project is situated in Al Wusta Governorate. It aims to store and blend all kinds of crude oil in big quantities thanks to its advanced infrastructure that is capable of meeting the demands of local and international markets.
The project is located at crossroads of Asian and African markets. It consists of two parts, the first of which includes marine works and has been completely executed. This part comprises of the floating import and export terminal, which is about 7 km offshore, along with two pipelines with a diameter of 42 inches, in addition to the systems associated with it. The second part of the project includes constructing the oil pumping systems, water treatment systems, the construction of reservoirs, the power stations network and other associated systems.
The project also includes the construction of a floating import and export terminal to receive the biggest oil tankers in the world with a depth reaching 42 meters. The terminal was connected with four main pumps to push crude oil to the storage area, which is located at an altitude of more than 120 meters from sea level. The site is ready to add additional pumps to keep pace with the demand for oil storage at the station whenever a need for expansion arises.