New Strategic Storage Project to Ensure Oman’s Emergency Preparedness

The storage facility will have a capacity of over 110,000 cubic meters of petroleum products, which will enhance fuel supplies for up to 30 days, facilitating the management of energy crises (Omani News Agency).
The storage facility will have a capacity of over 110,000 cubic meters of petroleum products, which will enhance fuel supplies for up to 30 days, facilitating the management of energy crises (Omani News Agency).
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New Strategic Storage Project to Ensure Oman’s Emergency Preparedness

The storage facility will have a capacity of over 110,000 cubic meters of petroleum products, which will enhance fuel supplies for up to 30 days, facilitating the management of energy crises (Omani News Agency).
The storage facility will have a capacity of over 110,000 cubic meters of petroleum products, which will enhance fuel supplies for up to 30 days, facilitating the management of energy crises (Omani News Agency).

OQ Group, a leading global integrated energy company, has laid the foundation for a strategic fuel storage project in Dhofar Governorate, southern Oman. The investment in the project exceeds 47 million Omani riyals (approximately $124 million).
The new facility will feature storage tanks, a warehouse, a control room, an administration building, a maintenance workshop, a pumping area, a tank filling area, and fire and safety facilities. This infrastructure is designed to ensure the uninterrupted supply of fuel.
With a storage capacity of over 110,000 cubic meters, the facility will enhance Dhofar’s fuel reserves for up to 30 days, thereby facilitating effective management of potential energy crises.
In a statement obtained by Asharq Al-Awsat, OQ Group emphasized that the project reflects the company’s commitment to supporting sustainable economic development and addressing the rising demand for petroleum products driven by population growth and increased commercial investments.
The foundation-laying ceremony was held on Monday, in the presence of Marwan bin Turki Al Said, Governor of Dhofar. He noted that the project symbolizes “the culmination of collaborative efforts by various entities in Oman, including the Ministry of Energy and Minerals and OQ Group.”
For his part, Eng. Salem bin Nasser Al-Aufi, Minister of Energy and Minerals, stressed that the project in Dhofar is aimed at enhancing Oman’s strategic fuel storage system. He emphasized that this initiative is crucial for meeting consumer demands and securing fuel availability during emergencies.
Speaking at the event, Ashraf bin Hamad Al-Mamari, CEO of OQ Group, highlighted that the strategic fuel storage project adds a new dimension to OQ Group’s investments in Dhofar, which already include facilities for liquefied petroleum gas, ammonia, methanol, and gas pipelines.
He further explained that the project was undertaken at the direction of the Government of Oman, through the Ministry of Energy and Minerals, which is dedicated to ensuring a reliable supply of petroleum products across all the country’s governorates.
The strategic fuel storage project comprises three main components: the fuel storage facility in the free zone, the construction of a pipeline connecting the pumping station at Salalah Port to the storage tanks in the Salalah Free Zone, and the expansion of the existing pumping facilities at Salalah Port. Additionally, the new Salalah facility will be connected to the current Raysut station.
The storage facility will cover an area of 150,000 square meters and will include engineering, procurement, and construction activities, leading up to its initial operation.

 

 



Libya's Eastern Government Says All Oilfields to Close

A view shows Sharara oil field near Ubari, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo Purchase Licensing Rights
A view shows Sharara oil field near Ubari, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo Purchase Licensing Rights
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Libya's Eastern Government Says All Oilfields to Close

A view shows Sharara oil field near Ubari, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo Purchase Licensing Rights
A view shows Sharara oil field near Ubari, Libya, July 6, 2017. REUTERS/Aidan Lewis/File Photo Purchase Licensing Rights

The government in eastern Libya announced on Monday that all oilfields would be closed down and production and exports halted, while there was no word from the country's internationally recognised government in Tripoli.

The National Oil Corp (NOC), which controls the country's oil resources, also provided no confirmation, according to Reuters.

NOC subsidiary Waha Oil Company, however, announced it planned to gradually reduce output and warned of a complete halt to production citing "protests and pressures".

Waha, which operates a joint venture with TotalEnergies and ConocoPhillips, has a production capacity of about 300,000 barrels per day (bpd) which is exported through the eastern port of Es Sider.

It operates five main fields in the southeast including Waha which produces more than 100,000 bpd as well as Gallo, Al-Fargh, Al-Samah and Al-Dhahra.

Most of Libya's oilfields are in the east, which is under the control of Khalifa Haftar who leads the Libyan National Army (LNA).

The Benghazi government did not specify for how long the oilfields could be closed.

Two engineers at Messla and Abu Attifel told Reuters on Monday that production was continuing and there had been no orders to halt output.

- POWER STRUGGLE

Libyan factions are locked in a power struggle over control of the central bank and the country's oil revenue.

The latest round of tensions emerged after efforts by political factions to oust the Central Bank of Libya (CBL) head Sadiq al-Kabir, with rival armed factions mobilising on each side.

The Tripoli-based CBL said on Monday that it suspended its services at home and abroad "due to exceptional disturbance".

The central bank is the only internationally recognized depository for Libyan oil revenue, which provide vital economic income for the country.

"The Central Bank of Libya hopes that its ongoing efforts in cooperation with all relevant authorities will allow it to resume its normal activity without further delay," it said in a statement.

It temporarily shut down all operations last week after a senior bank official was kidnapped but resumed operations the next day after the official was released.

A major oil producer, Libya has had little stability since a 2011 NATO-backed uprising. It split in 2014 with eastern and western factions that eventually drew in Russian and Turkish backing.

The NOC declared force majeure earlier this month at one of the country's largest oilfields, Sharara, located in Libya's southwest with a capacity of 300,000 bpd, due to protests.

Libya's oil production before Sharara's closure stood at about 1.2 million bpd.

El Feel in southwestern Libya would be the only functioning oilfield, with a capacity of 130,000 bpd, if production is halted in the east.