Saudi Aramco’s trading arm signs agreement with Oman’s OQ on new opportunities

The two companies will explore business prospects in the Omani port of Duqm

Saudi Aramco's trading arm signed an agreement with Oman’s global integrated energy company, OQ, to explore joint commercial opportunities in the energy sector. Reuters

The trading arm of Saudi Aramco, the world’s largest exporter of oil, signed an agreement with Oman’s global integrated energy company, OQ, to explore joint commercial opportunities in the energy sector.

Aramco Trading Company (ATC) and OQ will collaborate directly or through their affiliates to explore business prospects in the Omani port of Duqm and nearby crude oil storage terminal of Ras Markaz, the two companies said on Tuesday.

As part of the agreement, the companies will also undertake a joint review of ATC supplying feedstock to Duqm Refinery and Petrochemicals Industries Company (OQ8) as well as possible offtake of oil products by ATC from OQ8.

ATC and OQ may further expand the scope of the agreement to include product storage, renewables, green ammonia and green hydrogen, the companies said.

Aramco Trading Company trades crude oil, refined products, LNG and LPG, blending components, bulk petrochemicals and polyolefins. It has offices in Fujairah, London and Singapore.

OQ has operations in 17 countries that cover the entire value chain from exploration and production of oil and gas, refineries and petrochemicals to marketing and distribution of end-user products, reaching more than 60 countries worldwide.

The new agreement comes as Saudi Arabia’s Crown Prince Mohammed bin Salman visits Oman to strengthen ties between the two countries. Oman is expected to secure investment projects worth $10 billion during the visit.

Oman’s economy is projected to grow by 2.5 per cent this year after a contraction of 2.8 per cent last year, the International Monetary Fund said earlier this year.