08/09/2025 06:16 AST
In a significant milestone for bilateral energy co-operation, OQ Group has signed two strategic Memoranda of Understanding (MoUs) through its subsidiaries - Oman Tank Terminal Company (OTTCO) and OQ Trading - with Iraq's State Oil Marketing Organization (SOMO), the federal oil marketing arm of the Iraqi Ministry of Oil.
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 10mn barrels, expandable over time. The project will feature state-of-the-art infrastructure for storage, loading, and unloading.
The second MoU allows OQ Trading to market Iraqi crude on international markets, combining the commercial and operational expertise of both parties to enhance value creation, broaden market access, and strengthen knowledge exchange.
The agreements were signed by Salim bin Marhoon al Hashmi, Managing Director of OTTCO; Wail Zuhair al Jamali, CEO of OQ Trading; and Ali Nizar al Shatari, Director General of SOMO. The MoUs lay the foundation for large-scale crude storage at Ras Markaz and expanded global marketing of Iraqi crude.
Together, these agreements mark a pivotal step in strengthening economic ties between Oman and Iraq. By developing modern storage facilities and expanding crude trading capabilities, the two countries aim to maximise value, stimulate cross-border investment, and reinforce their positions as key hubs in global energy trade.
Hashmi said the partnership with SOMO represents a critical step in consolidating Oman's role as a regional energy hub, while enhancing bilateral relations and economic integration between Oman and Iraq.
He noted that since commencing operations at Ras Markaz in 2023, OTTCO has handled more than 300mn barrels of crude oil. The terminal's strategic location outside the Strait of Hormuz provides a competitive advantage, offering international companies large-scale and flexible storage solutions, and positioning Oman at the forefront of global energy logistics.
The Ras Markaz facility currently comprises eight storage tanks, an import and export platform, and central support systems, with a first-phase capacity of 26mn barrels and clear potential for expansion. In addition, OTTCO operates the products export terminal at Duqm Port, part of the Duqm Refinery (OQ8), and is advancing into clean energy infrastructure through global partnerships in ammonia and green hydrogen. These initiatives align fully with Oman Vision 2040 and the worldwide shift towards low-carbon energy.
Commenting on the co-operation, Jamali said, "This collaboration opens a new platform to reshape the region's oil trading landscape. At OQ Trading, our global network and deep expertise in complex trading operations allow us to forge innovative alliances that strengthen Oman's role as a hub for trade and investment."
The agreement positions Oman and Iraq as two pivotal anchors on the global energy map, leveraging their resources, infrastructure, and shared ambitions to bolster regional energy security and meet rising global demand. Jamali added that OQ Trading's commercial expertise, technical capabilities, and strategic alliances with leading oil and financial institutions will enhance the value of Iraqi crude in world markets and deliver reliable solutions adapted to the sector's rapid transformation.
Furthermore, the two MoUs 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 supports sustainable economic growth and reflects OQ's ambition to expand its global footprint while consolidating its position as a trusted partner for energy trade and investment.
Through this collaboration, Oman and Iraq emerge as central hubs in the global energy landscape. By leveraging their respective capabilities, resources, and infrastructure, both nations are well positioned to play a leading role in achieving regional energy security and meeting growing global demand.
Muscat Daily
Please wait...
