Brooge Energy announced that its fully-owned subsidiary, Brooge Petroleum and Gas Investment Company (BPGIC), has signed a refinery agreement with an oil trading company for a 25,000 barrels per day (b/d) modular refinery, a press release declared.
BPGIC will sublease its land which is adjacent to the port of Fujairah located in UAE, to Blue Ocean Energy FZE, which will construct the refinery bearing the full cost of the construction, S&P Global Platts elaborated.
The company’s statement added that once the construction is completed, BPGIC will be responsible for operating the refinery and earning revenue from tolling fees on a take-or-pay basis indicating that the tolling contract conducted for 20 years.
“The modular refinery will be focused on producing VLSFO and will be fully compliant with the new IMO 2020 very low sulphur rule. With the UAE adding to its oil production capacity, which we anticipate will drive demand for refining services for both the domestic and export market, we believe this is an opportune time to enter this segment of the oil industry”, according to the CEO of Brooge Energy, Nicolaas Paardenkooper.