Oman Tank Terminal Company (OTTCO), a subsidiary of state-owned Oman Oil Company, has opened a new floating storage facility with a 2.1 million barrel capacity at Mina Al Fahal port in Muscat.
The facility will provide Oman Export Blend to three customers – China Oil, Glencore and Oman Trading International – which will access the unit via a very large crude carrier (VLCC) provided and operated by Oman Shipping Company (OSC). Scheduling and loading of the oil will be managed by Petroleum Development Oman (PDO).
Ship-to-ship transfers will be carried out by Fendercare Marine.
The initiative makes OTTCO the first storage company in the world to provide floating storage linked to an energy futures contract, as well as making Dubai Mercantile Exchange the first exchange to incorporate floating storage at delivery point for customers, the firm said in a press statement.
The project is an interim storage solution for some of OTTCO’s customers ahead of the commissioning of the Ras Markaz Crude Oil Park, which is being built in Oman’s Al Wusta region.
“OTTCO’s floating storage facility is an important step in the introduction of our organisation to the global oil trading community, and the strong interest that we have had from bidders has been encouraging,” said Hilal Al Kharusi, OTTCO’s chairman.
“As we continue to make progress towards the development of Ras Markaz Crude Park, I am pleased to say that we are already serving the needs of our crude oil customers.”
The project has been supported by Oman’s Ministry of Oil and Gas, in partnership with OSC, PDO and DME.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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