The Oman Tank Terminal Company (OTTCO) are planning to start operating a floating storage facility later this year, according to Reuters.
The facility will help boost trading in crude oil futures on the Dubai Mercantile Exchange by two million barrels, trade sources told Reuters.
The storage will make more oil available that can be delivered against the futures contracts.
The storage space will be leased on a Very Large Crude Container (VLCC) through a tender process to four companies for a year. Each company can store one cargo, or 500,000 barrels.
OTTCO said that the project is still a work in progress and that it had received feedback from traders on the facility.