The Special Economic Zone Authority at Duqm and the Oman Tank Terminal Company have signed an agreement over the construction of the Ras Markas crude oil storage terminal.
The usufruct agreement allocates 1,253 hectares of land in Duqm for the Ras Markaz terminal for a period of 40 years. It grants the company exclusive rights for the storage of crude oil and its derivative in the area for a period of 20 years and for five years in the Special Economic Zone Authority at Duqm.
A five year development plan has been established to cover the construction of tanks, creation of floating platforms and piers for the import and export of crude oil, a pier for the tug boats under water pipelines to receive and export oil with lengths ranging from 5 km to 7 km. It also covers the creation of plant for pumping oil to the tanks.
The first phase of the five phase project will comprise 26 million barrels of storage with marine facilities for importing and exporting crude oil. It is expected to cost $1.7 billion during phase I.
The second phase is expected to cost $700 million.
A statement from OTTCO says that the terminal will be designed to allow for blending, loading and unloading ships at reasonable times. It is expected that the terminal will have an operational capacity of around 99%.
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