Oman opens EPC race for Ras Markaz expansion

Oman has invited contractors to prequalify for the next construction phase of the Ras Markaz Crude Oil Park, a flagship storage project sited beyond the Strait of Hormuz.

Oman Tank Terminal Co. (OTTCO), a subsidiary of state-owned OQ Group, has opened an expression of interest process to select engineering, procurement and construction (EPC) contractors with the technical depth and balance-sheet strength to deliver the works, according to a tender document. Detailed qualification criteria will be released during the prequalification stage. Bids must be submitted by August 4.

Eligible contenders must show a track record in oil and gas EPC delivery, with specific experience in crude storage terminals, tank farms and comparable petroleum infrastructure. Omani participants are additionally required to be registered with the Ministry of Commerce, Industry and Investment Promotion.

Located on a 40-square-km plot near Duqm Port within the Special Economic Zone at Duqm (SEZAD), Ras Markaz is being developed as a crude storage and logistics hub aimed at Asian, African and European buyers. Its position outside Hormuz has taken on fresh commercial weight since the Iran conflict, with nearly 20% of global oil and gas flows having transited the strait prior to the disruption.

OTTCO completed the first phase in December, covering 10 square km with capacity for 26.7mn barrels. At full build-out, the site can accommodate around 200mn barrels. Existing infrastructure comprises eight tanks with combined capacity of 5.2mn barrels, marine loading and unloading berths, subsea pipelines, and onshore systems for imports, exports and blending, alongside produced water treatment, control systems and security installations.

The Ras Markaz push comes as Gulf producers look increasingly to routes bypassing Hormuz. Mera Oil, a Saudi-US consortium, said on July 29 that it had shortlisted three locations in the Gulf, outside the strait, for a planned $5bn integrated refinery. Analysts told AGBI that concurrent disruptions at Hormuz and Bab al-Mandab are adding millions of dollars to the cost of every voyage through the region.

Traffic patterns are shifting accordingly. Oil prices fell more than 1% in early trading on July 30 as vessel numbers through Bab al-Mandab reached their highest level since mid-July, according to Reuters. Preliminary shipping data showed 39 commodity ships passed through Bab al-Mandab on July 28, while only a handful transited Hormuz.

The expansion aligns with Oman’s Vision 2040 strategy of diversifying economic activity and positioning Duqm as a regional refining, petrochemicals and logistics centre.