Latest news with #OQ
Zawya
21-07-2025
- 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
18-07-2025
- 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
17-07-2025
- 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
14-07-2025
- General
- Observer
4 Million tree seeds scattered in Dhofar
SALALAH: A major environmental campaign has been launched in Dhofar Governorate to scatter and plant four million seeds of native Omani trees, reinforcing national efforts to restore vegetation, combat desertification, and preserve biodiversity. The initiative—led by the Environment Authority in collaboration with Dhofar Municipality, OQ, OQ Bioplastics (OQBi), and the 'Wa'i' Awareness Initiative—targets mountainous areas across the wilayats of Salalah, Mirbat, Taqah, Rakhyut, and Dalkut. The campaign will run through 24 July. Now in its fifth consecutive year, the campaign is aligned with Oman's National Initiative to Plant 10 Million Trees, a flagship programme supporting Vision 2040 and the Sultanate's long-term sustainability agenda. Eng. Zahran bin Ahmed Al Abdul Salam, Director General of Environment in Dhofar Governorate, highlighted the strategic timing of the campaign ahead of the Khareef (monsoon) season. 'The heavy rains and persistent fog during autumn create ideal conditions for seed germination and early root development,' he said. 'Planting before the season begins significantly improves the survival rate and allows seedlings to establish resilient root systems.' He added that these well-rooted native plants also stabilise the soil, prevent erosion caused by rainfall and wind, and contribute to soil fertility—an essential factor in reversing desertification and sustaining local ecosystems. The campaign focuses on native tree species known for their resilience and ecological value in Oman, including Sidr (Ziziphus spina-christi), Sagout, Kelit, Warar, Sabar (cactus varieties), and wild fig. These trees are traditionally valued for their environmental, medicinal, and pastoral benefits. In 2024, a similar campaign successfully scattered more than four million seeds in areas including Sadah, Mirbat, and the Jabal Samhan Nature Reserve. That phase featured species such as Frankincense (Boswellia sacra), Samar, Ghaf (Prosopis cineraria), and Arabian Comb (Maerua crassifolia). Seeds were meticulously collected during natural flowering periods, then treated and prepared in specialised facilities to ensure high germination rates. The campaign has mobilised wide participation from government bodies, private sector partners, and local communities, underscoring a growing collective commitment to ecological stewardship. Amid growing environmental challenges and climate pressures, Oman's model of large-scale native tree planting offers a replicable blueprint for arid regions. The Environment Authority plans to expand the initiative in future cycles, with a focus on community involvement, scientific monitoring, and integrated reforestation practices to maximise long-term environmental benefits.
Zawya
07-07-2025
- Business
- Zawya
Oman: Fitch affirms OQ at ‘BB+', outlook positive
MUSCAT: International ratings agency Fitch Ratings has affirmed its long-term credit rating of OQ SAOC, Oman's fully state-owned integrated energy group, at 'BB+' with a Positive Outlook. The unchanged credit rating reflects OQ's robust strategic role in the national economy and its growing prominence in the country's green energy ambitions. According to Fitch, the rating mirrors OQ's continued close alignment with Oman's sovereign credit profile (also rated 'BB+' with a Positive Outlook), given its ownership by the Oman Investment Authority (OIA) and its central role in the country's oil, gas and renewable energy infrastructure. 'OQ accounts for a substantial portion of assets transferred to OIA from the Ministry of Finance in 2020. The government exercises strong influence over OQ's business and funding strategy through OIA. The state has no plans for the privatisation of OQ, but we expect the disposal of minority stakes in its subsidiaries, including core operating companies, to continue,' the ratings agency stated. OQ's Standalone Credit Profile (SCP) was assessed at 'bbb-', underscoring its low leverage, strong operational performance and a conservative financial policy. These strengths provide the company with sufficient financial flexibility to pursue expansion projects, even as its operations remain primarily concentrated in Oman, said Fitch. The ratings agency also referenced the successful IPO of two subsidiaries — OQ Exploration & Production (OQEP) and OQ Base Industries (OQBI) in 2024, which raised $2.5 billion. The proceeds helped significantly reduce OQ's debt by $1.7 billion, nearly wiping out net leverage. 'We expect leverage to gradually increase to about 1.5x by 2028 as the company invests in growth and Fitch-adjusted EBITDA normalises at about $2 billion on moderating oil prices and weaker refining margins. Major expansion initiatives are focused on the upstream business, including Marsa LNG project, the expansion of gas networks and decarbonisation,' Fitch stated. The agency also underlined the 'very strong' incentive for government support, highlighting OQ's status as a strategic state asset. The company operates all of Oman's domestic refining assets, manages the entire natural gas transportation infrastructure and is a key national developer of clean energy projects. This deep integration into Oman's critical infrastructure means a default by OQ would significantly impact the country's access to foreign financing — especially as the company is one of the largest non-sovereign borrowers in Oman, with a Fitch-adjusted gross debt of $7.7 billion at end-2024. A significant aspect of OQ's future growth is its green transition. Through its subsidiary, OQ Alternative Energy, the company has been designated as Oman's national champion for clean energy and green hydrogen development. Its pipeline now includes up to 7 GW of clean energy projects, with a first wave of five wind and two solar projects slated for tender in 2025. Substantial capital expenditures are expected over the next five years, especially following the final investment decisions on these clean energy initiatives. Capex is projected to average RO 600 million per year during 2025–2028.
