Oman Oil Company (OOC) plans to relocate its storage tank facility outside the Strait of Hormuz near Duqm. The company plans to build a facility that can store upto 200 million barrels of crude oil. However, the proposed storage largely depends on the producers who are willing to pay to use it.
The company has been mooting the idea of changing the storage location ever since the tensions between West and Iran have intensified over the Iran’s nuclear programme. The government is completing a feasibility study on the project, commented Nasser Al Jashmi, the chairman of the Oman Oil Company (OOC). He further said that the government decides to fund the project through OOC. The company also has the option to rent storage space to suppliers in case of potential disruptions in the Gulf.
Iran threatened to block Hormuz, if the West decides to cast a shadow on its nuclear programme. Under the situation, the UAE decided to open a new bypass pipeline across the desert to the Gulf of Oman port of Fujairah, while Saudi Arabia increased its export quota of oil from its Red Sea Ports. Oman current production capacity is about 900,000 bpd of oil, but does not export through Hormuz.