OQ AND SOMO SIGN TWO MEMORANDA OF COOPERATION IN A STRATEGIC PARTNERSHIP TO STRENGTHEN ENERGY COLLABORATION BETWEEN OMAN AND IRAQ

Muscat, 08 September 2025 – In a milestone for bilateral energy co-operation, OQ, Oman’s global energy investment group, has signed two strategic Memoranda of Understanding (MoUs) through its subsidiaries — the Oman Tank Terminal Company (OTTCO) and OQ Trading — with Iraq’s State Oil Marketing Organization (SOMO), the federal oil marketing arm of the Iraqi Ministry of Oil.

The first MoU establishes a long-term partnership to develop and operate an integrated crude oil storage project at Ras Markaz in Duqm, with an initial capacity of 10 million barrels expandable over time. The project will include state-of-the-art infrastructure for storage, loading and unloading.

The second MoU enables OQ Trading to market Iraqi crude in international markets, combining the commercial and operational expertise of both parties to enhance value creation, broaden market access and strengthen knowledge exchange.

The agreements were signed by Salim bin Marhoon al Hashmi, Managing Director of OTTCO; Wail Zuhair Al Jamali, CEO of OQ Trading; and Ali Nizar Al-Shatari, Director General of SOMO, laying the foundation for large-scale crude storage at Ras Markaz and expanded global marketing of Iraqi crude.

Together, these agreements mark a pivotal step in strengthening economic ties between Oman and Iraq. By developing modern storage facilities and expanding crude trading capabilities, the two countries aim to maximize value, stimulate cross-border investment, and reinforce their positions as vital hubs in global energy trade.

Eng. Salem bin Marhoon Al Hashmi, Managing Director of OTTCO, affirmed that the partnership with SOMO marks a pivotal step in consolidating Oman’s role as a regional energy hub while strengthening bilateral relations and economic integration between the Sultanate of Oman and the Republic of Iraq.

He highlighted that since commencing operations at Ras Markaz in 2023, OTTCO has handled more than 300 million barrels of crude oil. The terminal’s unique location outside the Strait of Hormuz grants it a distinct competitive advantage, offering international companies large-scale and flexible storage solutions and positioning Oman at the forefront of global energy logistics.

The Ras Markaz facility today includes eight storage tanks, an import and export platform, and central support systems, with a first-phase capacity of 26 million barrels and clear expansion potential. In addition, OTTCO operates the products export terminal at Duqm Port, part of the Duqm Refinery (OQ8), and is advancing into clean energy infrastructure through global partnerships in ammonia and green hydrogen; initiatives fully aligned with Oman Vision 2040 and the worldwide shift toward low-carbon energy.

Commenting on the co-operation, Wail bin Zuhair Al Jamali, Chief Executive Officer of OQ Trading, said: “This collaboration opens a new platform to reshape the region’s oil trading landscape. At OQ Trading, our global network and deep expertise in complex trading operations enable us to forge innovative alliances that strengthen Oman’s role as a hub for trade and investment.”

The agreement positions Oman and Iraq as two pivotal anchors on the global energy map, leveraging their resources, infrastructure and shared ambitions to bolster regional energy security and meet accelerating global demand. Al Jamali added that OQ Trading’s commercial expertise, technical capabilities and strategic alliances with leading oil and financial institutions will elevate the value of Iraqi crude in world markets and deliver reliable solutions attuned to the sector’s rapid transformation.

Furthermore, the two memoranda pave the way for knowledge exchange between OQ and SOMO, foster bilateral investment, and generate new jobs across both the public and private sectors.  This co-operation reinforces the path toward sustainable economic growth and reflects OQ’s ambition to expand its global footprint while consolidating its global presence as a trusted partner for energy trade and investment.

Through this collaboration, Oman and Iraq emerge as two pivotal hubs in the global energy landscape. Leveraging their respective capabilities, resources and infrastructure, both nations are positioned to play a central role in achieving energy security in the region and meeting rising global demand.

About OQ: 

OQ is a global energy investment group rooted in Oman. OQ has operations across 17 countries that cover the entire value chain from exploration and production of oil and gas, refineries and petrochemicals to marketing and distribution of end-user products reaching more than 80 countries worldwide. Committed to sustainability, OQ Alternative Energy focuses on investments in renewables and green hydrogen in Oman.