Monday, April 20, 2026

Oman News

Oman, Iraq ink strategic energy deals to boost oil storage and global trade

Oman and the Republic of Iraq have deepened energy cooperation, with OQ Group and Iraq’s State Oil Marketing Organization (SOMO) signing two strategic memoranda of understanding.

TAS News Service

info@thearabianstories.com

Saturday, September 6, 2025

MUSCAT : Signed during the visit of Iraqi Prime Minister Mohammed Shia al-Sudani to Muscat, the agreements mark a new chapter in bilateral cooperation between the two nations, both of which play key roles in the global energy landscape.

The first MoU, signed by Oman Tank Terminal Company (OTTCO), will see the development of a large-scale oil storage project at Ras Markaz in the Duqm Special Economic Zone. 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, signed by OQ Trading, entrusts the company with marketing Iraqi crude oil in international markets, leveraging joint expertise to maximize commercial value and open new prospects for cooperation.

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.

Wael bin Zuhair Al Jamali, CEO of OQ Trading, said the agreement 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.

SOMO General Manager Engineer Ali Nizar Al-Shatri stressed that storing Iraqi oil outside the Strait of Hormuz provides a guaranteed alternative for supply continuity, while global marketing through OQ strengthens Iraq’s reach.

The agreements also pave the way for knowledge-sharing, bilateral investments, and job creation, reinforcing both countries’ roles as hubs for energy trade.

For all the latest news from Oman and GCC, follow us on TwitterInstagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Close