Benzinga | Jul 28, 2021 09:02AM EDT

Brooge Energy Highlights Release Of Results Of Feasibility Study Commissioned For Co.'s Phase 3 Oil Storage Facility, Refinery

Brooge Energy Ltd. ("Brooge Energy" or the "Company") (NASDAQ:BROG), a midstream oil storage and service provider strategically located outside the Strait of Hormuz, in the Port of Fujairah in the United Arab Emirates, today released the results of the feasibility study commissioned for Brooge Energy's Phase III oil storage facility and refinery. The feasibility study supports the financial viability of the Company's Phase III expansion plan, highlighting upcoming infrastructure investments in the region as a key driver of sustainable storage demand and rising domestic and export demand for refined products as a key driver of refinery demand.

The Phase III expansion project is for a 2.5 million cbm oil storage facility1, a modular 25,000 barrel per day ("bpd") refinery, and a larger 180,000 bpd conventional refinery. The successful build out of Brooge Energy's Phase III facility would position the Company as the largest independent oil storage facility in Fujairah, with capacity to store Clean Petroleum Products; Middle Distillates; High and Low Sulphur Fuel oil as well as crude oil. The Phase III expected construction period is two years, with the Company anticipating it will be operational within 2023.

Competitive advantages:

* Technology: Brooge Energy's terminals are designed to deliver superior ancillary services (blending, heating, transfer) to clients, reduce operational cost to clients, and increase safety. IMO 2020 (low sulphur rule) compliant

* Strategic Location: Located on a prime location in Fujairah, the second largest bunker hub in the world.

* Modular refinery will be focused on LSFO production which has a shortage in supply.

Nicolaas L. Paardenkooper, CEO of Brooge Energy and BPGIC, said, "The feasibility study defines a project with robust economics and reinforces the strength of our business strategy, highlighting that the oil market is expected to continue to be the most important energy source going forward, with the Middle East region continuing to be the leading producer and exporter of crude over the medium to long term. The midstream sector will remain integral to its proper functioning. Our strategic positioning in Fujairah, where the high utilization of third-party storage terminals along with upcoming infrastructure investments, is expected to drive sustainable and growing demand for our storage solutions. To leverage this opportunity as much as possible, we are building out our technologically-advanced terminals that are able to deliver high margins. We also plan to build out a modular and a conventional refinery, including the capability to comply with the new IMO 2020 low sulphur rule, at a time when the UAE is adding to its oil production capacity which we anticipate will drive demand for refinery services for both the domestic and export market. With the completion of this study, we are now looking forward to potentially starting construction for Phase III as early as the second half of 2021."