Energy infrastructure investment firm Prostar Capital has completed a refinancing for its company Fujairah Oil Terminal (FOT), in the UAE.
Industry sources have reported that the new $280 million debt facility will replace the existing senior debt.
Additionally, it will create a capital expenditure facility to fund the connection of the terminal to the Very Large Crude Carrier (VLCC) jetty and Abu Dhabi Crude Oil pipeline, which delivers Abu Dhabi’s Murban crude to Fujairah, Prostar confirmed in a statement on Wednesday (August 18).
FOT is a 7.4 million-barrel bulk liquid storage terminal located in the UAE emirate of Fujairah, one of the largest bunkering ports in the world.
FOT is the top-ranked independent facility in the port, contributing 29 percent of 2020 throughput and representing about 12 percent of the Fujairah storage market, according to Prostar.
Favourable terms
Steve Bickerton, senior managing director at Prostar Capital and chairman of FOT, said: “Not only have we secured more favourable terms and increased liquidity, but also the capital to fund a major VLCC expansion project that will improve operational efficiency and help the facility build on its loyal customer base for years to come.”
Once completed, the planned capital project will connect the terminal’s crude oil tanks to Fujairah’s VLCC loading facility and the ADCOP pipeline. The improvements will increase FOT’s competitiveness, expand its customer base, and improve operating efficiency. It will also allow the terminal to leverage the expected growth in crude trading in the region, complemented by the recent launch of the world’s first Murban futures contract, which requires physical delivery in Fujairah.
Leading banks
Abu Dhabi National Oil Co, which began trading the Murban contract in March this year on ICE Futures Abu Dhabi, uses Fujairah’s terminal for delivery of the contract.
A group of leading regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Commercial Bank of Dubai, provided the new debt facilities.
