Prime Minister of the Bahamas, Hubert Minnis, has announced that his government has approved Oban Energies to commence an oil refinery and oil storage facility in Grand Bahama.
The project is expected to create 600 direct jobs, 1000 indirect jobs during construction.
Minnis said: “My Government has recently completed negotiating the Heads of Agreement which paves the way for the commencement of this important project […] This Heads of Agreement articulates how this development can proceed.
“I am advised that Oban Energies Management team has been involved in large energy infrastructure projects around the world and brings over 30 years of large, complex construction experience. Oban Energies has further advised that the first phase of the project will consist of 4 million bbls of fuel storage, a harbour, and deep-sea loading docks to service large vessels; and the construction of a 50 000 bpd refinery.
“In addition, Oban will build [an] up to 20 million bbl liquid bulk storage facility and a 250 000 bpd refinery. The oil refinery has an estimated project cost of up to US$4 billion and the terminal has an estimated cost of US$1.5 billion.
Minnis notes that the developer will contribute funds in the sum of US$100 000/yr to be used for community projects and development of East Grand Bahama.
The Agreement also calls for the establishment of a local Advisory Board who will determine the use of those funds and shall be comprised of four mutually agreed persons to both the government and the developer.
Another aspect of the Agreement stipulates that the Developer shall operate with the government to put in place and sustain during the course of the development multi-disciplinary on-the-job technical skills training and apprenticeship programmes, designed to equip the developers’ Bahamian employees with a level of technical proficiency, reasonably necessary for the promotion and advancement. And shall render reasonable, periodic assistance towards curriculum development at the University of The Bahamas.
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