The Special Economic Zone Authority at Duqm (Sezad) has granted Oman Tank Terminal Company (OTTCO) a usufruct right to construct Ras Markaz crude oil storage terminal.

The agreement was inked on behalf of Sezad by Yahia Bin Said bin Abdullah Al Jabri, chairman of the board and on behalf of Oman Tank Terminal Company by Engr. Isam Bin Saud Al Zadjali, CEO of Oman Oil Company and by Said Bin Hamoud Al Maawali, director of OTTCO.

The newly established terminal will help Oman find an additional port for the export of crude oil. Ras Markaz is located 70-km south of Al Duqm Centre and the total area allocated for the storage terminal is 1,253ha which is appropriate for high storage capacities.

The agreement grants OTTCO exclusive rights to develop the storage of crude oil and its derivatives in Ras Markaz area for a period of 20 years and for five years in Sezad as a whole provided that no other company will be permitted to establish or carry on any similar activity.

The project will include laboratories, control rooms, administrative offices for the company in addition to the other safety and securities facilities. The new terminal will be designed in a manner to allow for blending, loading and unloading the ships.

According to the agreement, OTTCO will be committed to develop all five phases either personally or via investment consortium or by means of soliciting and utilisation of third parties' investments.

Total investment during Phase 1 is expected to reach $1.756 billion inclusive of $815 million invested to cover the costs for the crude oil tanks and $941 million covering the costs for the construction of the marine and other infrastructure facilities.