Brooge Holdings Ltd and its wholly-owned subsidiary Brooge Petroleum and Gas Investment Co. FZE (BPGIC), a Fujairah Free Zone Entity in the oil storage and services business, have announced that BPGIC has signed a land lease agreement with Fujairah Oil Industrial Zone (FOIZ) for a strategically located plot of land with a total area of approximately 450 000 m2 on which BPGIC plans to develop its Phase III facility.
BPGIC expects that Phase III alone could add storage and services capacity of up to 3.5 times the size of BPGIC’s projected operations post-Phase II, which will be 1 million m3.
BPGIC intends to use the land to further increase its capacity for storage and refinery services by developing additional storage and refining capacity using the same technology, technical features and tank diversification as used in Phase I and Phase II.
BPGIC’s initial studies indicate that the land could house up to approximately 3.5 million m3 of storage tanks and, potentially, a refinery with a capacity of up to 180 000 bpd. BPGIC is in discussions with potential collaborators for Phase III including several top global oil majors who expressed interest in collaborating on the Phase III facility and has a signed memorandum of understanding in place.
BPGIC believes that with the completion of the Phase III expansion as planned, it would become the largest oil storage and service provider in Fujairah, UAE.
Nicolaas Paardenkooper, Chief Executive Officer of both Brooge Holdings and BPGIC, commented: “We are thrilled to announce that we have secured a lease for this strategic and sizeable plot of land in Fujairah Oil Industry Zone, which can accommodate additional capacity of over 3.5 times our facilities currently operating and under construction. When the Phase III expansion is completed, we expect to become the largest oil storage and service provider in the increasingly important FOIZ & Port of Fujairah.”
BPGIC will require additional financing to fund the development of the Phase III facilities and plans to commence discussions with regards to the finance structure with potential financiers based on the outcome of the final studies in the near future. There can be no assurances that BPGIC will be able to obtain such financing on commercially reasonable terms.
Read the article online at: https://www.tanksterminals.com/storage-tanks/10022020/bpgic-signs-land-lease-agreement-with-fujairah-oil-industrial-zone/