Odfjell Terminals Korea (OTK), a subsidiary of Norwegian delivery firm Odfjell, has entered right into a multi-year contract with South Korean oil refining and petrochemical firm S-Oil for storage at its increasing Ulsan terminal.

In accordance with OTK, the ten-year contract encompasses three 23,990 cubic-meter (cbm) tanks forming a part of its Ulsan terminal enlargement undertaking named E5. The deal represents the formalization of a memorandum of understanding (MoU) the 2 gamers signed three months in the past.

The tanks will accommodate S-Oil’s Shaheen undertaking, a $7 billion crude-to-chemical facility being constructed close to OTK’s Ulsan terminal. The E5 enlargement might be immediately linked to Shaheen by way of pipeline, enabling exports to international markets by sea. 

“The long-term settlement underscores the rising collaboration between OTK and S-OIL and units the stage for added enterprise alternatives within the Ulsan area, pushed by new manufacturing capability and commerce flows linked to the Shaheen undertaking,” mentioned Adrian Lenning, Managing Director of Odfjell Terminals.

The enlargement is scheduled to start out within the first half of 2025, with the brand new tanks anticipated to be operational by the second half of 2026. As acknowledged by the developer, it aligns with the strong storage demand outlook in Northeast Asia.

The E5 undertaking will see the addition of a brand new tank pit with ten 87,940 cbm carbon metal storage tanks. As soon as the enlargement is accomplished, OTK’s complete storage capability is about to extend by 28%, to greater than 400,000 cbm. 

One other unit of Odfjell, Odfjell Drilling, has been busy making new oil and fuel discoveries around the globe with its rigs. Earlier this week, Equinor made a brand new hydrocarbon discovery off the coast of Norway utilizing Deepsea Atlantic.

Earlier than that, TotalEnergies used the Deepsea Mira rig, owned by Northern Ocean (NOL) and managed by Odfjell Drilling, to drill an exploration nicely offshore Namibia.