The Government of Equatorial Guinea and Arabian Energy have signed an agreement on the development of a petroleum storage terminal in the country.
It has been reported that the Bioko Oil Terminal could become the largest oil and petroleum storage facility in West Africa.
The project, which is worth $500 million, will comprise 22 storage tanks with a total capacity of 1.2 million m3. It will be built in two phases, the first consisting of refined production and the second capable of storing, handling and blending middle distillates and light ends such as diesel, jet fuel, petrol and naphtha as well as crude oil.
Arabian Energy says the terminal infrastructure will be operated on a ‘first come, first served’ basis.
Dr Saud Al Anazi, chairman and owner of Arabian Energy, says: ‘By decreasing major imports of petroleum products, the Bioko Oil Terminal will promote efficiency in the midstream space. This investment will have a ripple effect in the value chain of many African economies value chain, creating employment opportunities, efficient and timely delivery of products and competitive pricing.’
The facility will create a centre for the distribution of petroleum products and crude oil and it is hoped that it will stimulate the West and Central African industry though job creation and the reduction of imports. It will attract investment, build local financial capacity and increase shipments to key export markets.