Oman to set up oil trade center in Thailand

Oman and Thailand have signed a memorandum of understanding (MOU) to set up an oil trade and distribution center in Thailand, the Thai news agency, TNA, reported.

TNA quoted Thai Industry Minister Suwat Liptapallop as saying in Bangkok on Thursday that the initial oil pact would cover the shipment of 17,000 barrels a day of crude oil from Oman and the opening up of an oil storage center in Thailand.

The center would facilitate oil trade among Asian countries, using Thailand as its distribution base, said Suwat.

The industry minister said, however, that a study of estimated returns of the project was being conducted before the oil deal would be finalized.

A leading Canadian energy firm had expressed its interest in the project and was negotiating with Thai authorities to jointly invest in the center, said Suwat.