Brooge Energy announced 9 July that its wholly owned subsidiary BPGIC has signed an agreement with Blue Ocean Energy to construct a 25,000 b/d modular refinery at the Indian Ocean terminal of Fujairah. The refinery will be designed to produce IMO compliant low-sulfur fuel oil.
Under the agreement, BPGIC will sublease land to Blue Ocean Energy which will be responsible for building the refinery. Upon completion, “BPGIC will be responsible for operating the refinery, earning revenue from tolling fees on a take-or-pay basis.” Brooge adds that the agreement “includes a tolling contract for a tenure of 20 years, consisting of a five-year contract to commence upon completion of the construction of the refinery, and three renewal periods of five years each.” (CONTINUED - 341 WORDS)