Oman and Iraq Strengthen Energy Cooperation with Strategic MOUs

Strategic Insights -

Oman and Iraq have taken significant steps towards strengthening their energy cooperation, marking a new chapter in their bilateral relations. Two key subsidiaries of Oman's state-owned energy group, OQ, have signed strategic Memorandums of Understanding (MOUs) with Iraq's State Oil Marketing Organization (SOMO). The agreements aim to enhance energy cooperation, create modern infrastructure, and support global distribution. The pacts were signed during a visit by Iraqi Prime Minister Mohammed Shia' Al Sudani, solidifying the role of both nations as key hubs in global crude markets.

Key Takeaways:

  • OQ subsidiary Oman Tank Terminal Company (OTTCO) will collaborate with SOMO on the development of an integrated crude oil project at Ras Markaz, with an initial capacity of 10 million barrels, expandable in the future.
  • The project will include storage, loading, and unloading facilities, and will leverage OTTCO's expertise in modern infrastructure and logistics.
  • OQ Trading will collaborate with SOMO in the international marketing of Iraqi crude, enhancing value creation and expanding market access.
  • The agreements underscore Ras Markaz's strategic appeal as a hub for crude storage and logistics, with access to maritime shipping lanes in the Indian Ocean and proximity to markets in Asia, Africa, and Europe.
  • The terminal currently supplies the Duqm Refinery via an 80-kilometre pipeline, transporting crude oil directly from Ras Markaz to the refinery.
  • Ras Markaz has advanced technical specifications, enabling the blending of different crude oil grades and efficient loading and discharge operations.

Statistics:

  • Initial capacity of the integrated crude oil project: 10 million barrels
  • Expandable capacity: future development plans
  • Storage facilities at Ras Markaz: 8 large oil tanks, floating platforms, and 7 km of subsea pipelines
  • Number of pipelines at Ras Markaz: 1 (80 km)
  • Storage area of Ras Markaz: 40 square kilometres
  • Capacity of Ras Markaz: approximately 200 million barrels
  • Coverage of Ras Markaz: 200 hectares

Sources:

  • OQ Group post (date not specified)
  • OQ Trading press release (date not specified)
  • Oman Tank Terminal Company (OTTCO) press release (date not specified)
  • State Oil Marketing Organization (SOMO) press release (date not specified)
  • Royal Vopak press release (dated: April)