OQ, Oman’s global energy investment group, and State Oil Marketing Organization (SOMO), the federal oil marketing arm of the Iraqi Ministry of Oil, have signed two bilateral energy co-operation Memoranda of Understanding (MoUs).
The MoUs have been signed with two OQ subsidiaries – the Oman Tank Terminal Company (OTTCO) and OQ Trading.
The first MoU establishes a long-term partnership to develop and operate an integrated crude oil storage project at Ras Markaz in Duqm, with an initial capacity of 10 million barrels. The project will include modern infrastructure for storage, loading and unloading.
The second MoU enables OQ Trading to market Iraqi crude in international markets, combining the commercial and operational expertise of both parties to enhance value creation, broaden market access and strengthen knowledge exchange.
Salem bin Marhoon Al Hashmi, Managing Director of OTTCO, said the partnership with SOMO marks a major step in consolidating Oman’s role as a regional energy hub while strengthening bilateral relations and economic integration between the Sultanate of Oman and the Republic of Iraq.
Since commencing operations at Ras Markaz in 2023, OTTCO has handled more than 300 million barrels of crude oil. The terminal’s unique location outside the Strait of Hormuz grants it a distinct competitive advantage, offering international companies large-scale and flexible storage solutions and positioning Oman at the forefront of global energy logistics.
The facility includes eight storage tanks, an import and export platform, and central support systems, with a first-phase capacity of 26 million barrels and clear expansion potential. In addition, OTTCO operates the products export terminal at Duqm Port, which is part of the Duqm Refinery (OQ8).
Wail bin Zuhair Al Jamali, Chief Executive Officer of OQ Trading, commented: “This collaboration opens a new platform to reshape the region’s oil trading landscape. At OQ Trading, our global network and expertise in complex trading operations enable us to forge innovative alliances that strengthen Oman’s role as a hub for trade and investment.”
Al Jamali added that OQ Trading’s commercial expertise, technical capabilities and strategic alliances with leading oil and financial institutions will elevate the value of Iraqi crude in world markets.
The two MoUs also pave the way for knowledge exchange between OQ and SOMO, foster bilateral investment, and generate new jobs across both the public and private sectors. This co-operation reinforces the path toward sustainable economic growth and reflects OQ’s ambition to expand its global footprint as a trusted partner for energy trade and investment.
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