Muscat: Oman Tank Terminal Company (OTTCO) will tender for a VLCC to become a floating storage unit later this year, Reuters reports.
OTTCO is majority owned by the Oman Oil Company (OOC) in a joint venture with Takamul Investment Company. The tender is expected to kick off in June with the floating storage due to start in September. The move is designed as a hedge against price volatility
While the rush for floating storage cooled off a couple of months ago, many are speculating demand could return soon. In a recent report DNB Markets noted: “The strong supply side in combination with very high global inventories of oil is also improving the possibility for the contango to widen and floating storage could easily come back into play.”