New contracts demonstrate strong, sustained demand for BPGIC’s strategically-located oil storage terminals
NEW YORK, Dec. 16, 2020 (GLOBE NEWSWIRE) — Brooge Energy Ltd. (“Brooge Energy” or the “Company”) (NASDAQ: BROG), a midstream oil storage and service provider strategically located outside the Strait of Hormuz, adjacent to the Port of Fujairah in the United Arab Emirates (“UAE”) through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company FZE (“BPGIC”) , announced today that BPGIC has signed offtake contracts with two regional oil trading companies for total geometric storage capacity of 104,074 cbm at a 60% premium to previous contracts. This follows other recent contracts for 129,000 cbm, which were announced on December 7, 2020.
Under the terms of the contracts, BPGIC will provide oil storage at its Phase I facility for a total of one year consisting of initial six month periods, plus additional six-month renewal periods, subject to mutual renewal, commencing in December 2020.
Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC, said, “Reliable and high tech oil storage providers continue to be in high demand due to the scarcity of available space in the market. As a result of these market dynamics, our two new agreements are at a 60% premium to previous contracts, allowing us to drive increased margins. Our facility utilizes advanced technology, high speed and innovative designs enabling us to provide a high level of service to oil trading companies at this time. We are pleased with our ability to secure new contracts at improved terms, demonstrating this unique market positioning.”
BPGIC is a key independent storage provider in Fujairah, UAE, conveniently situated in the East-coast port of Fujairah on the Gulf of Oman, which owns capacity to store clean petroleum products and fuel oil using some of the latest technology to maximize company performance and efficiency, while reducing operating costs. Through the development of its Phase II and Phase III facilities, it is also building capacity to store crude oil using similar technology.
