Brooge Petroleum and Gas Investment Company has signed a land lease deal with the Fujairah Oil Industrial Zone for a 450,000 square metre plot of land on which the firm plans to develop its phase III facility.
The company, which is owned by Nasdaq-listed Brooge Holdings, said that its phase III facility could be about three and-a-half times the size of its operations once work on phase II work completes, by which time it will have a storage capacity of 1 million cubic metres.
BPGIC intends to use the land to house extra storage and refinery facilities and that initial studies suggest the land could house storage tanks with a capacity of 3.5 million cubic metres and a refinery capable of handling up to 180,000 barrels per day.
“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," said Nicolaas Paardenkooper, chief executive of Brooge Holdings and BPGIC.
"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.”
The company said it was also in talks with potential collaborators for phase II, including several of the world's oil majors.
BPGIC will need funding for its third phase expansion, and said it "plans to commence discussions with regards to the finance structure with potential financiers" based on the outcome of its final studies for the facility.
