Work on the Bioko Oil Terminal in Equatorial Guinea is expected to gain momentum following the signing of an agreement between the Government of Equatorial Guinea and UAE-based Arabian Energy DMCC recently.

The two sides agreed to collaborate on the development, implementation, construction and financing of the $500 million project. The agreement was signed during the Equatorial Guinea-Saudi Arabia Economic Forum held in Jeddah.

Bioko Oil Terminal aims to become West Africa’s largest oil and petroleum products storage facility and will transform Equatorial Guinea into a pivotal trading and services hub in the region.

“The Bioko Oil Terminal is a first of its kind storage facility for West Africa and would bring to the region energy security and transport economies of scale and efficiencies like we have never been before,” said Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea.

“We welcome the addition of Arabian Energy and look forward to working together to move this project into realisation.”

Bioko Oil Terminal brings several advantages for the region. It creates an African centre for the distribution of petroleum products and crude oil and would stimulate the West and Central African industry through job creation and the reduction of imports. The tank farm would attract investment, build local financial capacity and increase shipments to key exports markets, said a statement.

With 22 storage tanks and a total capacity of 1.2 million cu m, Bioko Oil Terminal would be built in two phases, the first consisting of refined production and the second capable of storing, handling and blending middle distillates and lights ends such as diesel, jet fuel, gasoline and naphtha, as well as crude oil. The shared terminal infrastructure will be operated on a “first come, first served” basis. - TradeArabia News Service