BPGIC Signs Two New Oil Storage Contracts for its Phase I Facility at 60% Premium, Driving Further Margin Expansion
16 Diciembre 2020 - 4:30PM
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.
About Brooge Energy Limited
Brooge Energy conducts all of its business and
operations through its wholly-owned subsidiaries, Brooge Petroleum
and Gas Investment Company FZE (“BPGIC”) and Brooge Petroleum and
Gas Investment Company Phase III FZE (“BPGIC III”), Fujairah Free
Zone Entities. Brooge Energy is 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. Its
oil storage business differentiates itself from competitors by
providing customers with fast order processing times, excellent
customer service and high accuracy blending services with low oil
losses. For more information please visit at
www.broogeenergy.com
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995, that involve
risks and uncertainties concerning BPGIC’s, BPGIC III’s and Brooge
Energy’s expected financial performance, as well as their strategic
and operational plans. The actual results may differ materially
from expectations, estimates and projections due to a number of
risks and uncertainties and, consequently, you should not rely on
these forward looking statements as predictions of future events.
Words such as “expect,” “estimate,” “project,” “budget,”
“forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “would,”
“could,” “should,” “believes,” “predicts,” “potential,” “continue,”
and similar expressions are intended to identify such
forward-looking statements. These risks and uncertainties include,
but are not limited to: (1) the ultimate geographic spread,
duration and severity of the coronavirus outbreak and the
effectiveness of actions taken, or actions that may be taken, by
governmental authorities to contain the outbreak or ameliorate its
effects; (2) Brooge Energy’s and its subsidiaries’ ability to
obtain financing for Phase III on commercially reasonable terms;
(3) Brooge Energy’s and its subsidiaries’ ability to negotiate and
enter into development and offtake agreements on commercially
reasonable terms; (4) the results of technical and design
feasibility studies, including the Soil Investigation and the
Environmental Impact Assessment report for Phase III; (5) the loss
of any end-users; (6) changes in customer demand with respect to
ancillary services provided by Brooge Energy and its subsidiaries
including throughput, blending, heating, and intertank transfers;
(7) Brooge Energy’s and its subsidiaries’ ability to effectively
manage the risks and expenses associated with the construction of
Phase II, Phase III and other growth and expansion projects; and
(8) other risks and uncertainties indicated from time to time in
filings with or submissions to the SEC by Brooge Energy. Readers
are referred to the most recent reports filed with or furnished to
the SEC by Brooge Energy. Readers are cautioned not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor ContactKCSA Strategic
CommunicationsValter Pinto / Elizabeth Barker+1 212-896-1254 or +1
212-896-1203BROG@kcsa.com
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