Two subsidiaries of OQ- the state-owned integrated energy group of Oman - signed a pair of strategic MoUs with Iraq’s State Oil Marketing Organization (SOMO) during the official visit of the Iraqi Prime Minister, Mohammed Shia al-Sudani, to Oman recently.
The first MoU will see the development of a large-scale oil storage project at Ras Markaz in the Duqm Special Economic Zone, according to Oman’s news agency, ONA.
The facility, with an initial capacity of 10 million barrels, will include storage, loading, and unloading infrastructure, with room for expansion based on investment models.
The second MoU entrusts OQ Trading with marketing Iraqi crude oil in international markets, leveraging joint expertise to maximize commercial value and open new prospects for cooperation.
The two MoUs constitute a pivotal stage in the economic cooperation between Oman and Iraq.
They open up promising prospects for joint growth through the development of modern oil storage facilities and maximizing the value of its trade by taking advantage of common commercial and operational expertise, OQ said in a statement.
“Together, these memoranda extend beyond trade. They embody a shared commitment to building sustainable economic ties, exchanging knowledge, and advancing OQ’s ambition to grow as a trusted global partner in energy investment and trade,” OQ added.
Engineer Salem bin Marhoon Al Hashmi, CEO of OTTCO, described the partnership as a “qualitative step” that strengthens Oman’s position as a regional energy hub.
He noted that the Ras Markaz terminal, already handling more than 300 million barrels since 2023, benefits from its strategic location outside the Strait of Hormuz, offering global players secure and flexible storage solutions.
OTTCO currently operates a major crude oil storage terminal at Ras Markaz terminal, which includes eight large tanks, floating platforms for import-export operations, seven kilometers of subsea pipelines, and a pumping station linked to the storage tanks.
In April, OTTCO signed an agreement with Royal Vopak of the Netherlands to develop an integrated hub in the Special Economic Zone at Duqm (SEZAD). This partnership focuses on storage and handling of hydrocarbons, chemicals, and low-carbon products, as well as building infrastructure for oil, chemicals, LPG, LNG, hydrogen, ammonia, and CO₂ storage solutions.
Wael bin Zuhair Al Jamali, CEO of OQ Trading, said the agreement with SOMO will reshape the oil trading landscape by combining OQ’s international network with Iraq’s energy resources, helping enhance the value of Iraqi crude in global markets.
The agreements between Oman and Iraq also pave the way for knowledge-sharing, bilateral investments, and job creation, reinforcing both countries’ roles as hubs for energy trade.
