Twelve Seas Investment Company and BPGIC have executed an initial lease agreement for new land in the Port of Fujairah, UAE, near its existing facilities, which can accommodate its planned Phase III. BPGIC currently intends to use the land to further increase its capacity for crude oil storage and services by developing additional capacity, and if needed, host the remaining 90 per cent of the refinery facilities contemplated under the refinery and services agreement and related agreements with Sahara Energy Resources DMCC.

BPGIC expects that Phase III alone could add storage and services capacity of up to three and half times, or up to 3.5 million cbm, the size of BPGIC’s projected operations post-Phase II, which will be 1 million cbm. BPGIC believes it could execute a final lease agreement, which would permit commencing plans and construction, for this land sometime in 2019, but there can be no assurances that this will occur. Concurrently, BPGIC has had discussions with global end-users, who have expressed interest in securing portions of the capacity of a Phase III facility.

BPGIC was founded in 2013 to capitalise on an anticipated need for oil storage capacity at the Port of Fujairah, in the UAE, which was expected to become an important oil hub. Today, the Port of Fujairah is one of the most attractive storage hubs and a key strategic trading node globally. 

BPGIC is developing terminals in phases and aims to have a total capacity of 1 million cbm following the scheduled completion of the second phase of construction by Q2 2020. If Phase III is completed successfully as planned, BPGIC would become the largest oil storage and services business in Fujairah, almost double that of its nearest competitor in the Port of Fujairah.

Nicolaas Paardenkooper, CEO of BPGIC commented: “We are very excited to be announcing our initial lease for significant land in the Port of Fujairah, which alone represents future capacity additions of over three and a half times our Phase I and Phase II facilities that are currently operating and under construction, respectively.

“After completion of Phase II in Q2 2020, we expect to be the second largest non-captive storage provider in Fujairah, and now with this Phase III land, we expect to be the largest storage provider, captive or non-captive, in Fujairah, at a time when the strategic importance of Fujairah within the region and globally is increasing significantly. We are committed to completing this merger with Twelve Seas and entering the U.S. capital markets. We recognise that the U.S. capital markets are the largest in the world and include sophisticated U.S. and global investors with large investments in similar public companies within our industry.”

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14th October 2019