The first phase will cost around $300 - $400 mill, Minister of Oil and Gas Mohammad bin Hamad al-Rumhy reportedly said last Saturday.
It will be built by a subsidiary of state-owned Oman Oil Co (OOC) at Ras Markaz, about 70 km from Duqm, where the government is developing a port and industrial zone, the state agency in charge of the zone quoted Rumhy as saying by local media.
In the first phase, the storage facility will have a capacity of between 6- 10 mill barrels of oil and serve an oil refinery planned for Duqm. Capacity could be expanded to as much as 200 mill barrels at a later stage.
"OOC will continue to develop the project and increase the number of tanks, according to the level of demand in the oil storage market. Our ambition for Ras Markaz is to be one of the largest oil storage hubs worldwide," Rumhy reportedly said.