Muscat – Oman’s Ministry of Energy and Minerals on Sunday signed a framework agreement with Oman Tank Terminal Company (OTTCO) to develop a new oil pipeline for the export of Oman blend crude from Ras Markaz Crude Oil Terminal in Duqm.

OTTCO is a wholly owned subsidiary of OQ Group, Oman’s international integrated energy company. OTTCO’s ambition is to create world-class oil storage infrastructure networks in and outside Oman.

The agreement between Ministry of Energy and Minerals and OTTCO has been signed for their joint cooperation to develop, build and operate the new oil pipeline, the ministry said in a press statement.

The pipeline will be connected with OTTCO infrastructure to transfer, store and export Oman blend crude from the Ras Markaz Crude Oil Terminal which is owned and operated by OTTCO in the Special Economic Zone at Duqm (SEZAD.

The agreement was signed by H E Eng Salim Nasser al Aufi, Minister of Energy and Minerals, Talal bin Hamed al Awfi, CEO of OQ Group, and Hilal bin Ali al Kharusi, CEO – commercial and downstream at OQ Group and chairman of OTTCO. Ard Van Hoof, CEO of OTTCO and other senior officials from the ministry were also present at the signing ceremony which marks a significant milestone in this endeavor.

As per the ministry’s statement, the new oil pipeline project will expand the energy sector by meeting the expected growth in the Special Economic Zone at Duqm and energy industry in the sultanate. It will further support Oman crude as a benchmark and the Ras Markaz Crude Oil Terminal to become a regional hub in alignment with OQ Group and OTTCO’s growth strategy.

The Ras Markaz Crude Oil Terminal will provide oil handling, storage, import and export services for refineries and petrochemicals downstream projects in the SEZAD and to serve market needs of customers and other stakeholders.

As the project developer OTTCO will now conduct detailed studies and move forward with execution and implementation of this important project, including facilities which may be required for customers, producers and traders of Oman export blend crude. In addition, OTTCO, as an experienced operator, also provides all services related to the operations and maintenance of the facilities and assets.

The Ras Markaz Crude Oil Terminal is OTTCO’s landmark project which has been selected for its strategic location and suitability in receiving giant oil tankers, as well as its proximity to the world maritime routes. The company is currently completing the first phase of the terminal and expected to commission its trial operation later in the year.