Brooge Energy Ltd. Announces the Signing of Agreement with Oil Trader for One of the First Refineries in the Region to Produc...
09 Julio 2021 - 7:30AM
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 (the “UAE”), today announced
that its wholly owned subsidiary, Brooge Petroleum and Gas
Investment Company FZE (“BPGIC”), has signed a Refinery Agreement
with an oil trading company for a 25,000 barrel per day (“bpd”)
modular refinery.
BPGIC will sublease land to the oil trading
company, which will be responsible for constructing the refinery
including bearing the full cost of construction. When construction
is complete, BPGIC will be responsible for operating the refinery,
earning revenue from tolling fees on a take-or-pay basis. The
agreement between BPGIC and the oil trading company 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.
Nicolaas L. Paardenkooper, CEO of Brooge Energy
and BPGIC, said, “The modular refinery will be focused on producing
Very Low Sulphur Fuel Oil (“VLSFO”) and will be fully compliant
with the new IMO 2020 very low sulphur rule. With the UAE adding to
its oil production capacity, which we anticipate will drive demand
for refining services for both the domestic and export market, we
believe this is an opportune time to enter this segment of the oil
industry. This agreement is a low-risk approach to advancing these
plans as the oil trading partner will own the asset and take on the
cost of construction and any oil price risk, while our focus
remains in our area of expertise as the operator of the facility.
This is expected to drive additional revenue to Brooge Energy, at
favorable EBITDA margins.”
About Brooge
Energy LimitedBrooge Energy conducts all of its
business and operations through its wholly owned subsidiaries,
Brooge Petroleum and Gas Investment Company FZE 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 StatementsThis
press release contains statements, including all information
relating to matters that are not historical facts, including the
anticipated increase in demand for refining services in the UAE and
our ability to obtain additional revenue at favourable EBITDA
margins, that constitute “forward-looking statements” within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Such statements reflect
management’s current views based on certain assumptions, and they
involve risks and uncertainties. Actual results, events or
performance may differ materially from the forward-looking
statements due to a number of important factors, and will be
dependent upon a variety of factors, including the UAE’s continued
focus on increasing oil production capacity, the ability to
construct the facility within the expected time frame and to the
proposed specifications, BPGIC’s ability to operate the facility as
expected, as well as other risks described in public reports filed
by Brooge Energy with the SEC, including under the caption “Risk
Factors” in Brooge Energy’s Annual Report on Annual Report on Form
20-F for the year ended December 31, 2020, filed with the SEC on
April 5, 2021, as amended by Amendment No. 1 to the Annual Report
on Form 20-F/A filed with the SEC on April 6, 2021. Readers are
cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. Brooge Energy
does not undertake any 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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