Duqm’s ambitions to emerge as a global hub for energy logistics received a further boost when two key subsidiaries of OQ – the state-owned integrated energy group of Oman – signed a pair of strategic MoUs with Iraq’s State Oil Marketing Organization (SOMO) to strengthen energy cooperation between the two countries.
The pacts, signed during the official visit of Iraqi Prime Minister Mohammed Shia’ Al Sudani, mark a new chapter in Oman–Iraq energy relations and reinforce the role of both nations as “key hubs in global crude markets,” OQ said in a post.
As part of the first MoU, OQ subsidiary Oman Tank Terminal Company (OTTCO) – which operates a major crude oil storage terminal at Ras Markaz near Duqm – will collaborate with SOMO on the development of an integrated crude oil project at Ras Markaz. In its initial phases, the project will include storage, loading, and unloading facilities with a starting capacity of 10 million barrels, expandable in the future.
“The first memorandum establishes a large-scale crude storage project at Ras Markaz with an initial capacity of 10 million barrels, creating modern infrastructure to support global distribution,” OQ noted in its post.
OTTCO commented: “This strategic partnership reflects the strong relations between the Sultanate of Oman and the Republic of Iraq, and underscores OTTCO’s ambitious vision to position Duqm as a regional energy hub while opening new horizons for growth and economic integration.”
The large-scale crude storage project will support the global distribution of Iraqi oil
Under the second MoU, OQ Trading – the commodities trading arm of OQ Group – agreed to collaborate with SOMO in the international marketing of Iraqi crude, leveraging combined expertise to enhance value creation and expand market access.
“Together, these memoranda extend beyond trade. They embody a shared commitment to building sustainable economic ties, exchanging knowledge, and advancing OQ’s ambition to grow as a trusted global partner in energy investment and trade,” OQ added.
The main pact underscores Ras Markaz’s strategic appeal as a hub for crude storage and logistics. Supporting that appeal is Duqm’s proximity to maritime shipping lanes in the Indian Ocean, with access to markets in Asia, Africa and Europe.
The terminal currently supplies the Duqm Refinery via an 80-kilometre pipeline, transporting crude oil directly from Ras Markaz to the refinery. Its storage facilities comprise eight large oil tanks, floating platforms for import and export operations, seven kilometres of subsea pipelines for receiving and dispatching oil, and a pumping station connected to the storage tanks.
Equipped with advanced technical specifications, the terminal has the capability to blend different grades of crude oil and to load and discharge vessels with exceptional efficiency. Covering an area of 40 square kilometres, Ras Markaz is designed to accommodate approximately 200 million barrels of oil.
In April, OTTCO signed an agreement with Royal Vopak of the Netherlands to support the development of an integrated hub at the Special Economic Zone at Duqm (SEZAD) for the storage and handling of hydrocarbons, chemicals, and low-carbon products. The collaboration also focuses on building industrial and energy terminal infrastructure, including storage solutions for oil, chemicals, LPG, LNG, hydrogen, ammonia and CO?.
