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Iraq is considering Oman pipeline as a way to boost crude exports and storage, according to SOMO chief

Iraq may build a pipeline for crude oil export to Oman. This would allow it to market Iraqi oil globally, and supply a planned storage area in the sultanate.

Ali Nazar, SOMO's Director general, said that there was already an agreement in principle. Future contract negotiations will include discussions about the route and capacity of the pipeline.

Nazar, speaking at an energy forum held in Baghdad, said that the pipeline would transport crude oil to a storage facility integrated at Ras Markaz. The initial capacity is expected to be 10 million barrels.

He added, "We are eager to move forward to make sure the tanks have strategic value as well as being consistently supplied with Iraqi oil on a daily base."

Nazar stated that the pipeline could either be maritime and pass through the Gulf or it could be overland depending on the results of a feasibility report comparing the two options.

SOMO announced on Saturday that it had signed two Memorandums Of Understanding with Oman’s OQ Group. One of the agreements was to develop a storage facility in Ras Markaz. The second MoU allows OQ Trading, with the help of both sides' commercial and administrative expertise, to market Iraqi crude internationally. (Reporting and writing by Muayad Haeed; editing by Susan Fenton).

(source: Reuters)