The Sultanate of Oman has planned to increase crude oil storage capacity in Duqm from about 5 million barrels to 10 million barrels over the next three years. This decision is made to capitalize on the strategic location of Duqm port located on the shores of the Arabian Sea and outside the Strait of Hormuz.
Purchasing new tankers for storage
Reports indicate that OQ Group is also considering purchasing two large tankers for use in floating storage at Duqm port. Each of these tankers has a storage capacity of two million barrels, which could add approximately 4 million barrels to the floating storage capacity.
Development of storage infrastructure
Ashraf bin Hamad Al-Maamari, CEO of OQ Group, has announced that the preparation process for these tankers for storage will take about six months after the purchase is finalized. The final decision regarding the purchase of these tankers will be made later this year, after evaluating the costs and potential benefits of oil storage.
Overall, the Sultanate of Oman is striving to increase crude oil storage capacity in Duqm to about 40 million barrels in the long term, so that this port is recognized as a regional hub for oil storage and trade. This goal reflects Oman's desire to expand its infrastructure and attract new investments in this area.
Additionally, Al-Maamari has pointed to Oman's intention to develop regional pipeline networks and stated that negotiations in this regard are still in the early stages and are being conducted at the governmental level. Given the recent fluctuations in maritime traffic and the increasing risks and transportation costs, the importance of oil storage facilities outside the Strait of Hormuz has become greater than ever. Duqm's location on the Arabian Sea provides access to crude oil without the need to pass through the Strait.
