Oman Tank Terminal Company (OTTCO), the developer of the world’s largest crude storage terminal, has signed an agreement with the Special Economic Zone Authority at Duqm (SEZAD) for land rights to build the crude park at Ras Markaz.

OTTCO’s parent company Oman Oil Company has revealed the memorandum of understanding (MoU) gave it the right to use the land to build the first phase of the crude storage facility, which is set to accommodate six million barrels of crude.

The estimated $400m park is being developed as an alternative to crude storage and transportation facility to the Strait of Hormuz. OTTCO plans to expand capacity on the facility up to 200 million b/d in over several phases.

MEED reported that five teams had submitted bids to develop the project. They are:

  • China Harbour Engineering/China Petroleum Pipeline Bureau JV (China)
  • Saipem (Italy)
  • Sinopec/Chinese Oil Engineering Construction Corporation JV (China)
  • Royal Boskalis Westminster/Rotary Engineering JV (Netherlands/Singapore)
  • Petrofac (UK)

Of the initial phase, 4.4 million barrels capacity will be used to serve the upcoming Duqm Refinery. Crude storage tanks to service the refinery were tendered as part of the third package on the project, which also includes terminal export facilities, crude pipelines as well as a pumping station. Saipem emerged as the front runner on the final package, for which bids were submitted in April.

The last package of the 230,000 barrel-a-day refinery includes eight storage tanks with 550,000 barrels capacity each.

The first phase of Ras Markaz is expected to be completed in 2019. It will be located 70km south of Duqm and is the closest harbour to the special economic zone. It can handle crude super tankers and will be connected via a new 440km pipeline to Oman’s main onshore oil fields.