Melons Oil Terminal will store 2 million barrels of oil under an operational and managing agreement in a fuel free zone on Taboga and Melones islands.
The agreement was passed by the Cabinet Council and the Minister of the Presidency on behalf of the state.
The company is to invest $65 million (€49 million) into the development in order to operate, maintain and manage a complex of tanks, pumping stations, docks, and ducts for crude oil, semi-processed, derivative products, natural gas, biofuels, petrochemicals and others on the islands.
Throughout the build, the development should create around 200 jobs. Once the project is completed and comes online, a further 50 direct jobs will be created.