Oman floating towards land

18.01.16. Oman Tank Terminal Company’s strategy of evolving from floating to land storage is on schedule, according to Said Al-Maawali, project director of OTTCO, which is a subsidiary of Oman Oil Company.
Speaking at the 9th Annual Platts European Oil Storage Conference in Amsterdam today, Al-Maawali said the decision to go ahead with floating storage in the terminal’s first phase was an invaluable learning experience for the start-up company.
OTTCO announced last year the launch of the 2.1 million barrel capacity facility at Mina Al Fahal for customers of Oman Export Blend. Three contracts have been signed for access to the facility on board a very large crude carrier (VLCC), which will be provided and operated by Oman Shipping Company (OSC).
The floating storage solution was launched as an interim solution for select customers ahead of the commissioning of Ras Markaz Crude Oil Park, expected in 2019. Once complete, the whole facility will cover an area of approximately 1,600ha in Oman’s Al Wusta region, approximately 70km south of Duqm Port.
OTTCO’s facility, which was initiated and supported by Oman’s Ministry of Oil & 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.
Al-Maawali said 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 DME the first exchange in the world to incorporate floating storage at delivery point for customers, thereby supporting the trading of DME Oman crude oil futures on the exchange. Moreover, the facility will enable buyers to face any unforeseen circumstances by providing a viable storage option for the oil they have purchased.