OQ and SOMO agreements to boost Oman-Iraq energy co-operation

Energy ties between Oman and Iraq are set to strengthen with the signature of two MoUs between OQ, Oman’s global energy investment group, 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 with state-of-the-art infrastructure for storage, loading and unloading at Ras Markaz in Duqm. It will have an initial capacity of 10 million barrels with the potential for expansion.

The second MoU enables OQ Trading to market Iraqi crude in international markets.

By developing modern storage facilities and expanding crude trading capabilities, the two countries aim to maximise 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 Oman Tank Terminal Company (OTTCO), highlighted that since commencing operations at Ras Markaz in 2023, OTTCO has handled more than 300 million barrels of crude oil. The terminal is strategically located outside the Strait of Hormuz, offering international companies large-scale and flexible storage solutions and positioning Oman at the forefront of global energy logistics.

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, in line with Oman Vision 2040 objectives and the shift toward low-carbon energy.

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 two agreements additionally pave the way for knowledge exchange between OQ and SOMO, foster bilateral investment, and create new jobs across both the public and private sectors.