Brooge Petroleum and Gas Investment Company (BPGIC) has signed a new land lease agreement with Fujairah Oil Industrial Zone, which almost triples its land area in Fujairah in a firm step forward towards its major expansion plans
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 3.5mn cu m of storage tanks and, potentially, a refinery with a capacity of up to 180,000 bbl per day. 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.
Nicolaas Paardenkooper, CEO of 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 an 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.
Brooge Holdings Limited is an exempted company incorporated under the laws of the Cayman Islands. Brooge Holdings conducts all of its business and operations through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company FZE, an oil storage and service provider strategically located in FOIZ which is complemented by Port of Fujairah in the Emirate of Fujairah in the UAE.
