Brooge Energy Ltd, (which is a midstream oil storage and service provider strategically located outside the Strait of Hormuz, adjacent to the Port of Fujairah in the United Arab Emirates), has announced that MUC Oil and Gas Engineering Consultancy (MUC) has issued the final basic design for the company’s planned Phase III oil storage terminals and refinery.

Brooge Energy’s wholly-owned subsidiary, Brooge Petroleum and Gas Investment Company, appointed MUC Oil and Gas Engineering Consultancy to complete the basic design and Front End Engineering Design (FEED) study for its planned 180,000 bpd refinery and the Phase III oil storage facility in Fujairah.

It said that completing the basic design progresses the company’s plan to develop up to 3.5 million metres cubed of storage capacity, which is the equivalent of 22 million barrels. The company said it is targeting the Phase III facility and hopes it will be operational in late 2022. 

Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC, said: “Our vision is to build the largest oil storage and be the best service provider in the Port of Fujairah in the UAE, which is one of the world’s most strategically important choke points with approximately 25% of total global oil passing through this strait. 

“We are pleased that MUC has completed the basic design, which is an important stage in the planning and development of the facility, and that they are progressing with the FEED study, which is anticipated to be completed in the coming weeks.”

Concurrently, he said Brooge is in discussions with global oil majors that have expressed an interest in contracting portions of the Phase III facility: “The company plans to ensure that Phase III capacity is fully contracted through a multi-year take-or-pay contract prior to commencing construction to ensure revenue stability and visibility.”

BPGIC is a key independent storage provider situated in the East-coast port of Fujairah on the Gulf of Oman, which owns capacity to store clean petroleum products and fuel oil using some of the latest technology to maximise company performance and efficiency, while reducing operating costs. 

Through the development of its Phase II and Phase III facilities, it said it is building capacity to store crude oil using similar technology.

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16th July 2020