Saturday 26 September 2015

Oman plans worlds largest oil storage tank farm - insurance against Strait of Hormuz disruptions


 
 

Oman plans to build $1bn oil storage site


Oman is committed to building, and paying for, a huge $1 billion facility to store up to 200 million barrels of crude oil at Duqm on the Arabian Sea, an oil and gas official said on Monday.

State-run Oman Oil Company (OOC) would fund the expected billion-dollar project to build what would be by far the world's largest tank farm, chairman Nasser Al Jashmi said.

"We are committed to build it and it will cost $1 billion. We already have assurances from regional countries that they will use it," Nasser Al Jashmi, who is also the undersecretary of the ministry of oil and gas, said.

Iranian threats to block the Strait of Hormuz over the last few years have spurred the UAE to open a bypass pipeline to the Gulf of Oman, while Saudi Arabia has increased its capacity to export oil from Red Sea Ports.

Oman hopes there is still demand from Gulf oil producers for added insurance against potential disruptions to pay to use its storage facility at the south east coast town of Duqm. - Reuters

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