Oman Oil Company (OOC) has entered into a joint development agreement (JDA) with Port of Duqm Company (PDC) for the construction and management of a liquid jetty at the port. The signing ceremony was attended by Yahya bin Said al Jabri, chairman of Special Economic Zone Authority at Duqm (SEZAD).
The agreement was signed on Monday at the SEZAD head office by Ahmed bin Salim al Wahaibi, CEO of OOC, and Peter Broers, CEO of PDC.
The agreement includes establishing a joint venture company, Duqm Petroleum Terminal Company, in which OOC will hold a 90 per cent stake, with the rest held by PDC. The new venture will operate and manage the liquid jetty at the port.
According to the agreement, the project will be implemented in two phases. The first phase will involve the supervision and management of the construction of the liquid jetty, subject to approval from the Ministry of Transport and Communications and SEZAD. The second phase will involve the operation of the jetty and petroleum tank terminal services. The company will share the concession with PDC for the operation of the jetty and to provide oil warehouse construction and management services.
Speaking on the occasion, Jabri said, "The signing of this agreement emphasises the importance of SEZAD in establishing different economic projects and supporting the government's efforts to diversify the economy and attract local and foreign investments.
"We are currently studying a number of investment requests that we have received from companies in and outside of Oman."
Jabri added, "The joint venture will allow both OOC and PDC to better manage the construction phase according to the timeline and competitively manage the operations."
© Muscat Daily 2012
