Oman to Operate Floating Crude Oil Storage Vessel

SINGAPORE, April 28 (Reuters) – Oman Tank Terminal Company (OTTCO) plans to begin working a floating storage unit later this yr to ease commerce of crude oil futures on the Dubai Mercantile Exchange (DME), commerce sources mentioned on Tuesday.

The storage will enhance month-to-month commerce volumes on the DME by 2 million barrels and assist curb worth volatility, they mentioned.

OTTCO, majority owned by the Oman Oil Company (OOC), will lease space for storing onboard a Very Large Crude Carrier, by way of a young course of to 4 corporations for a yr, they mentioned. Each firm may have house to retailer one cargo, or 500,000 barrels.

The tender might be issued in June or July in order that the space for storing can be allotted earlier than September when commerce in November-loading cargoes begins, the sources mentioned.

OTTCO, a three way partnership between OOC and Takamul Investment Company, declined to remark. (Reporting by Florence Tan; Editing by Clarence Fernandez)