SOCAR AURORA Fujairah Terminal FZC (SAFT), the joint venture company between SOCAR, the State Oil Company of Azerbaijan Republic, AURORA Progress, the Swiss based commodity trading house, and the Government of Fujairah today announced the start of construction of the second phase of the 645,000 cubic metre oil products terminal in Fujairah. This phase adds 235,000 cubic metres to the tanks already in operation and has been funded with $61 million from APICORP and National Bank of Fujairah.
APICORP is the lead bank providing in total $110 million of funding to construct both the second and third phases of the terminal.
Ammar Kutait, CEO of SAFT commented "We have now signed the construction contracts for the 10 tanks involved in Phase 2 of the terminal. Fujairah National Construction & Transportation (FNCT) is doing all the civil works on the site, Belleli Energy is constructing the tanks and pipelines and Consilium Middle East is providing all the electrical, instrumentation and fire fighting equipment.
"We are delighted to have concluded these agreements and reached financial close with our banks."
SOCAR Trading CFO and Board Member of SAFT, Zaur Gahramanov said: "The first phase of the terminal has been completed as planned and received the first oil products into the tanks in March. This next phase will be fully operational by the fourth quarter of next year."
"The first two phases of the terminal are already fully let", added Ammar Kutait, "our priority now is to deliver the second phase again on time and within budget and, after the successful completion of Phase 1, we will again be employing MUC Oil & Gas to project manage the development of the second phase. With funding already secured with APICORP for Phase 3 we can progress discussions with interested parties on this remaining 295,000 cubic metres of tankage. We will be tendering shortly for the construction contracts and will be seeking expressions of interest from potential contractors."
SOCAR AURORA Fujairah Terminal: The terminal consists of 645,000m3 of storage across 22 tanks and can handle fuel oils, gasolines, naphthas and middle distillates (diesel, gasoil & jet kerosene) and will be equipped with both tank-to-tank and in-line blending facilities. SOCAR AURORA is an independent terminal operator offering storage capacity to third parties. The Port of Fujairah is providing a new multi berth facility for the receipt and loading of oil tankers. The terminal is being constructed in 3 phases - Phase 1 of 115,000 cubic metres, already in service, Phase 2 of 235,000 cubic metres now under construction and Phase 3 of 295,000 cubic metres comprising 7 tanks of 39,250 cubic metres and one of 20,350 cubic metres will be tendered shortly and will be completed during 2014.