Brooge Petroleum and Gas Investment Company FZE (BPGIC) has signed a new land lease agreement with Fujairah Oil Industrial Zone, and in doing so has nearly tripled its land area in Fujairah.
The agreement in question is for a strategically located and prime 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 three and half (3.5) times the size of BPGIC’s projected operations post-Phase II, which will be 1 million m3.
In what it described in a statement as a “firm step forward towards major expansion plans” Brooge Holdings Limited and its wholly-owned subsidiary (BPGIC), a Fujairah Free Zone Entity in the oil storage and services business, intend to use the land to further increase its capacity for storage and refinery services by developing additional storage and refining capacity.
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 bbl per day.
It said in the statement that it is currently 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 added it believes that with the completion of the Phase III expansion, it will become the largest oil storage and service provider in Fujairah.
Nicolaas Paardenkooper, Chief Executive Officer of both Brooge Holdings and BPGIC, said: “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 said it will require additional financing to fund the development of the Phase III facilities and that it plans to begin discussions with regards to the finance structure with potential financiers based on the outcome of the final studies in the near future. It said: “There can be no assurances that BPGIC will be able to obtain such financing on commercially reasonable terms”.
For more information visit www.broogeholdings.com