Latest news with #MinistryofEnergyandMinerals
Zawya
a day ago
- Business
- Zawya
OQ projects to boost Oman's fuel storage
Major investments by Oman's OQ in fuel storage infrastructure are poised to strengthen its pivotal role in strategic fuel logistics, the Ministry of Energy and Minerals said. Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects. The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024. Underscoring the importance of the project, the Ministry said in a report: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities.' It added:' The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies.' In August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added. When fully operational—targeted for early 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport. Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal. (Writing by Nadim Kawach; Editing by Anoop Menon)
Zawya
4 days ago
- Business
- Zawya
OQ investments boost Oman's fuel storage capacity
The new storage hubs will boost Oman's resilience to supply crises primarily during weather-related emergencies Major investments by OQ – the integrated energy group of Oman – in the country's fuel storage infrastructure are poised to strengthen its pivotal role in strategic fuel logistics, according to the Ministry of Energy and Minerals. Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects. The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024. Underscoring the importance of the project, the Ministry stated: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities. The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies,' the Ministry added in its recently published 2024 Annual Report. Earlier, in August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added. When fully operational—targeted for around April 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport. Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal. Since commencing operations just over two years ago, Ras Markaz has handled 491 vessels as of the end of April 2025. In this period, it imported over 950 million barrels of crude oil and exported approximately 17 million metric tonnes of petroleum products. Earlier this year, OTTCO signed a strategic partnership with Royal Vopak, the leading Dutch fuel logistics company, aimed at transforming Duqm into a global hub for storage services. The company is also exploring opportunities to support the development of advanced infrastructure for the storage, handling, and export of green ammonia. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
5 days ago
- Business
- Observer
OQ investments boost Oman's fuel storage capacity
Major investments by OQ – the integrated energy group of Oman – in the country's fuel storage infrastructure are poised to strengthen its pivotal role in strategic fuel logistics, according to the Ministry of Energy and Minerals. Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects. The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024. Underscoring the importance of the project, the Ministry stated: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities. The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies,' the Ministry added in its recently published 2024 Annual Report. Earlier, in August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added. When fully operational—targeted for around April 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport. Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal. Since commencing operations just over two years ago, Ras Markaz has handled 491 vessels as of the end of April 2025. In this period, it imported over 950 million barrels of crude oil and exported approximately 17 million metric tonnes of petroleum products. Earlier this year, OTTCO signed a strategic partnership with Royal Vopak, the leading Dutch fuel logistics company, aimed at transforming Duqm into a global hub for storage services. The company is also exploring opportunities to support the development of advanced infrastructure for the storage, handling, and export of green ammonia.
Observer
6 days ago
- Business
- Observer
OQEP, TPAO ink exclusive pact to evaluate Oman upstream blocks
MUSCAT, JULY 16 OQ Exploration & Production New Ventures LLC, a subsidiary of OQ Exploration & Production (OQEP), has signed a tripartite Exclusivity Agreement with the Omani Ministry of Energy and Minerals and Türkiye's state-owned energy giant Turkish Petroleum Corporation (TPAO). The agreement grants the parties exclusive rights to evaluate specific oil and gas blocks in the Sultanate of Oman for a three-month period. Publicly traded OQEP disclosed the agreement in a filing to the Muscat Stock Exchange (MSX) on Wednesday, July 16. According to Turkish media, the agreement was signed during the official visit to Muscat by Türkiye's Minister of Energy and Natural Resources, Alparslan Bayraktar, earlier this week. During the visit, Bayraktar held bilateral talks with Eng Salim bin Nasser al Aufi, Oman's Minister of Energy and Minerals. As part of the visit, a Memorandum of Understanding (MoU) was also signed between the two countries. The MoU commits both sides to exchange technical expertise, align regulatory frameworks, explore joint energy projects and examine financing mechanisms aimed at enhancing efficiency and accelerating the transition to cleaner fuels. Potential areas of collaboration include crude oil exploration, LNG trade, renewable energy development, energy storage technologies and alternative fuels. A dedicated workstream will also explore opportunities in green hydrogen production, storage and transport — an emerging focus area under Oman's net-zero 2050 strategy. Separately, OQEP and TPAO signed another agreement to explore broader opportunities for investment and cooperation in other energy-related domains. TPAO, wholly owned by the Turkish government, is Türkiye's national oil company. While originally integrated across exploration, production, refining, marketing and transportation, it has since the 1980s focused primarily on exploration and production. In addition to its significant domestic footprint, TPAO is active internationally in countries such as Azerbaijan, Libya, Pakistan, Hungary, Somalia, Iraq and Russia. From deepwater production in the Black Sea to seismic exploration globally, TPAO plays a key role in Türkiye's push for energy independence and regional leadership in hydrocarbons. OQEP — Oman's largest pure-play upstream operator and the upstream arm of majority state-owned OQ Group — has a portfolio of around 15 onshore and offshore assets. With a daily output averaging around 230,000 barrels of oil equivalent, OQEP accounts for roughly 14% of Oman's total hydrocarbon production. In addition to its core operations, OQEP also holds a 20 per cent stake in Marsa LNG, a low-carbon marine LNG bunkering project under construction at SOHAR Port and Freezone, led by TotalEnergies. Earlier this year, OQEP was designated by the Ministry of Energy and Minerals to support the joint marketing of up to 11 new concession blocks to be launched as part of multiple bid rounds in 2025. The effort is being undertaken in partnership with the Ministry and Toronto-based Scotiabank, a global leader in oil and gas M&A advisory, with deep finance and technical expertise in the energy sector.
Observer
7 days ago
- Business
- Observer
Mining sector grows with 26 new licences
MUSCAT, JULY 15 In a landmark year for Oman's minerals sector, the Ministry of Energy and Minerals issued 26 new mining licences in 2024 and celebrated the start of commercial copper exports, marking a major step forward in the Sultanate's efforts to diversify its economy under the Vision 2040 framework. According to the Ministry's annual report for 2024, the government granted 14 permanent mining licences and 12 exploration licences, with approvals spread across strategic governorates including Dhofar, Al Wusta, North Al Sharqiyah, Al Batinah, and Al Dhahirah. These licences covered a broad array of resources such as gypsum, limestone, chromite, copper, iron ore, marble, and various construction materials. The Ministry also renewed 10 mining licences and one exploration licence, helping ensure continuity for active operations while opening doors for new entrants to the market. The year also saw major developments in copper mining, with two strategic projects beginning production and exports. In Al Khaboura, the Al Ghuzayn Copper Project entered commercial operation in 2024, with an initial investment of RO 43 million. The project, developed by Mawarid Mining, aims to extract six million tonnes of copper ore over six and a half years. In addition to producing and exporting its first copper shipments, the company issued sales invoices and official export certificates, solidifying Oman's re-entry into the global copper market. The project is also expected to generate 50 direct jobs for Omani nationals and allocate one per cent of its annual output to support local community development, in line with the provisions of Oman's Mineral Wealth Law. Meanwhile, in the Wilayat of Al Mudhaibi, the Wash-hi Copper Project achieved a significant milestone with the commencement of copper concentrate exports. The site holds an estimated 16 million tonnes of reserves and is capable of producing high-quality copper concentrate with a purity of 24 per cent. Officials hailed the development as a strong signal of growing investor confidence in Oman's mineral resource potential, particularly in base metals. Despite facing challenges linked to production reporting delays from several operators, Oman's overall mineral output for 2024 remained substantial. Total mineral ore production stood at 67.7 million tonnes, down 14 per cent compared to the previous year. Of this, 62.5 million tonnes were sold, generating revenues of RO 114.3 million. Exported volumes reached 35.9 million tonnes, with gypsum accounting for the largest share at 12.4 million tonnes, or 35 per cent of total exports. Limestone exports rose sharply by 49 per cent to 7.4 million tonnes, while the export of raw construction materials dropped by 39 per cent. Significantly, 2024 marked the first commercial copper exports from Oman, with 24,000 tonnes shipped to international markets. In tandem with licensing efforts, the Ministry also concluded several long-term concession agreements during the year to facilitate industrial-scale mining development. Among the key signings were Area 22-D in North Al Sharqiyah, which was awarded to Al Tamman Indsil Ferrochrome Company; Area 51-K, granted to Naqa Salt Company; and Area 11-A, signed with Al Tasnim Gulf Potash. These agreements support Oman's aim of attracting responsible investment in mineral development while fostering the downstream processing and value-added industries required to localise production chains. By the end of 2024, ten companies were operating across 21 designated mining concession areas in the Sultanate. These blocks contain commercially viable reserves of copper, chrome, laterite, potash, dolomite, gypsum, limestone, nickel, and cobalt. The Ministry is continuing to promote digital transformation in the sector and has launched an online bidding platform to enable transparent access to mineral blocks and facilitate the evaluation of applications by potential investors. In terms of human capital, the mining sector employed 3,942 workers during 2024, including 890 Omani nationals. This translates into an Omanisation rate of 23 per cent. The Ministry has signalled its intention to raise this figure by enhancing workforce development and supporting national capacity-building initiatives in mining engineering, geology, and environmental management.
