Brooge Petroleum, Sahara Energy to build oil refinery in Fujairah
- 15 May 2019
Brooge Petroleum and Gas Investment Co (BPGIC) and Sahara Energy Resources DMCC Dubai on Tuesday evening signed a partnership agreement to set up an oil refinery capable of producing bunker fuel with a capacity of up to 250,000 barrel per day (bpd) in the Emirate of Fujairah.
BPGIC and Sahara Energy said the facility will be one of the first of its kind in the Middle East and North Africa to comply with the new regulations of the International Maritime Organisation (IMO) 2020 by capping sulfur content in shipping fuels. The first phase of the planned refinery is expected to be completed by Q1 2020.
Mohammed Sanusi Barkindo, Secretary General of OPEC, attended the signing ceremony here in Abu Dhabi and said the deal “evolved through the drive of the UAE’s leadership in promoting and supporting such private initiatives and expediting the diversification of their economies.” He underlined the “unique role of the private sector as a critical engine for economic vision and strategies.” Commenting on the signing, Nicolaas Paardenkooper, BPGIC CEO, said, “The new facility will contribute to bolstering the growing status of the Emirate of Fujairah in the Oil & Gas industry and help meet the growing demand for shipping fuel that complies with the new international laws on capping sulfur content in shippingfuels, as most of current shipping fuel contains up to 3,5 per cent sulphur.” New regulations of IMO will require ships to use fuels with a sulphur content below 0.5 per cent beginning in 2020. “It falls in line with the company’s expansion strategy and its growing contribution to the development of the Oil & Gas industry in the UAE by injecting more investments into this essential sector,” he noted.
Executive Director, Sahara Group, Wale Ajibade, said the Refinery Unit would from its location in Fujairah make Sahara Energy DMCC a major supplier of IMO 2020 compliant products in the UAE as well as in African, Asian and European Markets.
“Sahara Energy DMCC is delighted to be part of this landmark leap into the future of clean energy. We are constantly seeking opportunities to expand our operations and develop the sector in line with global best practices. Bringing energy to life is the passion that drives us at Sahara and we are committed to ensuring that our energy is accessible, clean and ultimately reliable for promoting sustainable development globally,” he said.
Nicolaas Paardenkooper, BPGIC CEO highlighted the listing process of BPGIC on Nasdaq Stock Exchange which started in April as a resounding success conducive for building up investor confidence in the company and its expansion plans.
Wale Ajibade said Sahara Group continues to operate as foremost promoter of clean energy initiatives, working in collaboration with prominent global stakeholders. In addition to other interventions, Sahara Group recently signed a Memorandum of Understanding with the United Nations Development Programme (UNDP) to promote reliable access to affordable and sustainable energy in Africa.
After three years of extensive market studies BPGIC was incorporated in 2013 in Fujairah’s Free Zone in UAE. BPGIC’s activities cover: Liquid bulk product storage (Crude oil, Fuel oil, Refined Oil products, blending components and gas), Building, Managing, Investment in refineries, Extraction and Exploration of Crude oil.
BPGIC is governed by the Board of Directors , all reputed professionals with extensive track record in the Oil and Gas Industry. The Board is primarly responsible for setting the strategy of BPGIC and for the general management and overview of strategic, operational and financial decisions.
The Board has set up an Executive Committee (EXCOM) to monitor the implementation of the companies Mission and Vision, Company Strategy and Business Development both in the UAE and globally.
BPGIC is committed to providing the best in class service to the oil majors and global oil & gas traders with continious premium financial results to our valued stakeholders.
To deliver sustainable services by forward thinking approach to challenges and finding suitable solutions by adapting latest technologies and lean operations processes.
Sahara Group is a leading international energy and infrastructure conglomerate with operations in over 38 countries across Africa, Middle East, Europe and Asia.
Sahara Group and the United Nations Development Programme (UNDP) are joining forces to promote reliable access to affordable and sustainable energy, and to mainstream the Sustainable Development Goals (SDGs) in the private sector with a specific focus on SDG 7 (affordable energy).
The partnership was formalized in mid-April in New York during the official signing of a Memorandum of Understanding by UNDP’s Regional Director for Africa Ms. Ahunna Eziakonwa and the Sahara Group Executive Director Mr. Temitope Shonubi, in the presence of UNDP Administrator Achim Steiner, and the Permanent Representative of the Federal Republic of Nigeria H.E. Ambassador Tijani Muhammad-Bandé.
WAM
