By: Oil & gas Middle east

Oman and Iraq have signed two key Memoranda of Understanding (MoUs) to boost their cooperation in energy storage and crude marketing, marking a significant step in their bilateral relations.

Oman’s OQ group, through its subsidiaries Oman Tank Terminal Company (OTTCO) and OQ Trading, has partnered with Iraq’s State Oil Marketing Organisation (SOMO) to enhance energy collaboration. The first MoU focuses on developing a crude oil storage project at Ras Markaz, Duqm, with an initial capacity of 10 million barrels, expandable in the future.

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 during a signing ceremony in Muscat.
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, during a signing ceremony in Muscat.
This facility will feature state-of-the-art storage, loading, and unloading infrastructure.

The second MoU allows OQ Trading to market Iraqi crude internationally, leveraging both parties’ expertise to boost value creation, broaden market access, and strengthen knowledge exchange.

The agreements were signed by key leaders from both organisations, setting the foundation for large-scale crude storage at Ras Markaz and expanded global marketing of Iraqi crude.

These agreements aim to fortify economic ties, stimulate cross-border investment, and enhance both countries’ positions as vital players in global energy trade. Eng. Salem bin Marhoon Al Hashmi of OTTCO emphasised the strategic importance of the Ras Markaz facility, which offers a competitive advantage due to its location outside the Strait of Hormuz.

The Ras Markaz facility, operational since 2023, includes eight storage tanks and an import-export platform, with a capacity of 26 million barrels and potential for expansion. It is part of the Duqm Refinery and is advancing clean energy initiatives aligned with Oman Vision 2040.

Wail bin Zuhair Al Jamali, CEO of OQ Trading, highlighted the collaboration’s potential to reshape the region’s oil trading landscape and strengthen Oman’s role in trade and investment. The partnership positions Oman and Iraq as anchors on the global energy map, leveraging their resources and infrastructure to bolster regional energy security and meet global demand.

The agreements also pave the way for knowledge exchange, foster bilateral investment, and create new job opportunities, reinforcing sustainable economic growth and OQ’s ambition to expand its global presence.