Oil storage firm Brooge Holdings has signed a land lease agreement with the Fujairah Oil Industrial Zone, FOIZ, that will see it take responsibility for an additional 450,000 sq. metres of space, as part of plans to expand its storage and refinery operations at the UAE’s East Coast oil hub, according to an announcement late yesterday.

Brooge Holdings, which is listed on the US NASDAQ exchange, operates in Fujairah through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company FZE, BPGIC, which is registered in the Fujairah Free Zone.

The agreement covers a strategically located and prime plot of land on which BPGIC plans to develop its Phase Three 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.

BPGIC intends to use the land to further increase its capacity for storage and refinery services by developing additional storage and refining capacity to complement the facilities in its Phase One and Phase Two developments. 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. BPGIC is in discussions with potential collaborators for Phase III including several top global oil majors who have expressed interest in collaborating on the Phase III facility and has a signed memorandum of understanding in place, the announcement said.

Nicolaas Paardenkooper, Chief Executive Officer of both Brooge Holdings and 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 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.

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