Oman Oil Marketing Company (Omanoil) has signed a long-term lease agreement with Salalah Port Services to develop a new bunkering and oil product trading terminal in the south of the sultanate.

Omanoil says the “medium-sized” terminal will help expand its bunkering and treading capabilities, providing services to ships calling at the Port of Salalah. It will be completed by the end of 2016, the company said.

“Upon completion, this new facility will further strengthening the Governorate of Dhofar’s position as a key logistics hub and center of maritime trade, promising even greater economic and social benefits,” said Omanoil CEO Omar Qatan.

Omanoil was established in 2003 with a mandate to market and distribute fuel and lubricant products across the sultanate, including aviation and marine refuelling.