Muscat -- Oman Tank Terminal Company (OTTCO), a subsidiary of Oman Oil Company (OOC), has announced the launch of a new floating storage facility, with a 2.1 million barrel capacity at Mina al Fahal, for global customers of Oman Export Blend. The launch took place on Thursday.
Three customers -- China Oil, Glencore and Oman Trading International (OTI) -- have won bids for access to the facility on board a Very Large Crude Carrier (VLCC), which will be provided and operated by Oman Shipping Company (OSC).
OTTCO's floating storage facility, which was initiated and supported by Oman's Ministry of Oil and Gas (MOG), has been developed in partnership with OSC, Petroleum Development Oman ( PDO) and the Dubai Mercantile Exchange ( DME).
While the vessel itself will be operated by OSC, scheduling and nomination for the loading of crude oil will be managed by PDO. Ship-to-ship (STS) transfers will be executed by Fendercare Marine, an international specialised STS firm.
The initiative makes OTTCO the first storage company in the world to provide floating storage linked to an energy futures contract.
This initiative also makes DMEthe first exchange in the world to incorporate floating storage at delivery point for customers, thereby supporting the trading of DMEOman crude oil futures on the exchange while strengthening its strong trading ecosystem to create more efficiencies.
This new facility will also enable buyers on the DMEto store their oil and optimise market circumstances to their benefit giving them additional flexibility. Moreover, the storage facility will enable buyers to face any unforeseen circumstances by providing a viable storage option for the oil they have purchased.
Falling under the Sultanate's Promising Plan for Economic Diversification and Maintaining a Crude Oil Storage Terminal for Oman
A tender for developing the first phase of a large crude storage facility at Ras Markaz near Duqm will be awarded soon