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Iraq signs Oman oil agreements

8 September 2025

Iraq’s State Oil Marketing Organisation (Somo) has signed two agreements with Oman’s OQ group, including one to develop an oil storage facility with a capacity of 10 million barrels.

The memorandums of understanding (MoUs) were signed during the official visit of Iraqi Prime Minister Mohammed Shia Al-Sudani to Oman.

They mark a new chapter in Oman-Iraq energy relations and reinforce the role of both nations as “key hubs in global crude markets”, OQ said in a statement.

Under the terms of the first MoU, the OQ subsidiary Oman Tank Terminal Company (OTTCO), which operates a major crude oil storage terminal at Ras Markaz near Duqm, will collaborate with Somo on the development of an integrated crude oil project at Ras Markaz.

The company said that, in its initial phases, the project will include storage, loading and unloading facilities, with a starting capacity of 10 million barrels, expandable in the future.

OQ said: “The first memorandum establishes a large-scale crude storage project at Ras Markaz with an initial capacity of 10 million barrels, creating modern infrastructure to support global distribution.”

OTTCO said: “This strategic partnership reflects the strong relations between the Sultanate of Oman and the Republic of Iraq, and underscores OTTCO’s ambitious vision to position Duqm as a regional energy hub while opening new horizons for growth and economic integration.”

The large-scale crude storage project is expected to support the global distribution of Iraqi oil.

Under the terms of the second MoU, OQ Trading, the commodities trading arm of OQ Group, agreed to collaborate with Somo on the international marketing of Iraqi crude.

OQ said: “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.”

Iraq is also considering building a pipeline to export crude oil to Oman – a move that would help the country market its crude globally and keep the planned storage facility in the sultanate well supplied, according to Somo.

Somo has said that there is already an “agreement in principle” and that discussions on the pipeline’s route and capacity will be part of future contract negotiations.

The Ras Markaz terminal currently supplies the Duqm refinery via an 80-kilometre pipeline, transporting crude oil directly from Ras Markaz to the refinery.

Its storage facilities comprise eight large oil tanks, floating platforms for import and export operations, seven kilometres of subsea pipelines for receiving and dispatching oil, and a pumping station connected to the storage tanks.

In April, OTTCO signed an agreement with Royal Vopak of the Netherlands to support the development of an integrated hub at the Special Economic Zone at Duqm (Sezad) for the storage and handling of hydrocarbons, chemicals and low-carbon products. The collaboration also focuses on building industrial and energy terminal infrastructure, including storage solutions for oil, chemicals, liquefied petroleum gas, liquefied natural gas, hydrogen, ammonia and carbon dioxide.

READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage

Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
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Wil Crisp

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