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Oban Goods Junction was south of Oban station and provided access to Oban's principal goods yard, Lochavullin Goods, and locomotive shed Oban Shed. Both opened with the Oban extension in 1880.

Approach to the goods yard was from the south. From the junction to Oban station the railway was double track. The signal box was on the west side of the junction and a very short siding for the Oban Gas Works was on the east side, leading off the goods yard approach via a short headshunt.

Just to the north, on the double track section, was Oban station's ticket platform, obviously only built on one side, the arrival line.

The signal box, originally timber, was replaced by a brick built London, Midland and Scottish Railway building in 1929.

The box closed in 1969 when the up (eastbound) line was disconnected at the box. The line to Oban station signal box now became used for both directions and the disconnected line was now a long siding from Oban station's signal box to a headshunt for entry into the goods yard. Oban Shed had closed in 1962 and the goods yard was reduced to an oil siding only, with the bulk of the yard lifted. Direct access to Oban station's platform 1 and carriage siding was no longer directly available and these became goods lines accessed by two reversals at the Oban box.

This oil siding is no longer in use and the connection has been taken out. The oil siding was all that remained of the very much cut back goods facilities and locomotive shed in Oban.

Oil deliveries continued until the early 1990s. A second oil depot, for Caledonian MacBrayne and also closed, was located at the station pier.

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