Brooge Energy Ltd., a midstream oil storage and service provider strategically located outside the Strait of Hormuz, in the Port of Fujairah in the United Arab Emirates (the “UAE”), has announced that its wholly owned subsidiary, Brooge Petroleum and Gas Investment Company FZE (“BPGIC”), has applied for a permit to commence testing and commissioning for its Phase II storage facility, the final step in order to secure regulatory approval to open the facility. Phase II is fully contracted, and the Company has already commenced receipt of advanced income for Phase II storage fees, which are anticipated to contribute to its revenues in the second half of 2021.
The new facility was built to the same exacting and award-winning standards as the Company’s Phase I facility. When opened, BPGIC is expected to be the second largest independent storage operator in the region with capacity of approximately one million cubic meters, or 6.3 million barrels.
Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC, said, “We are very pleased to have substantially completed all construction work on our Phase II storage facility and doing so under the challenging environment that the pandemic presented. We are now moving into the final stages before opening the facility. Phase II will significantly expand our storage capacity to include crude oil along with fuel oil. Additionally, the opening of this facility further strengthens our leadership position and is expected to generate significant new revenue for the Company. Oil storage is in high demand at the moment, with all the existing storage units in Fujairah at full capacity. Our strategic location, automated terminals, and comprehensive ancillary services such as blending, heating, and inter-tank transfers, make us exceedingly well-positioned to leverage this opportunity to build value for shareholders.”