Midstream energy infrastructure firm Prostar Capital has successfully refinanced Fujairah Oil Terminal (FOT) in the UAE, giving it a US$280 million (€239 million) debt facility for investment in the terminal.
FOT has a capacity of 7.4 million bbl, and is the top-ranked independent facility in the Port of Fujairah, representing 12% of the port’s storage market and accounting for 29% of the port’s throughout in 2020. Prostar Capital plans to use its new debt facility to connect FOT to Fujairah’s very large crude carrier (VLCC) jetty via Matrix Manifold 2 (MM2), and to the ADCOP pipeline, which delivers Abu Dhabi’s Murban crude to Fujairah and is currently being extended to MM2.
Prostar Capital says that the work will increase FOT’s competitiveness, expand its customer base and improve its operating facility, as well as being able to take advantage of expected growth in crude trading in the region, following the launch of the world’s first Murban Futures contract, which is delivered through Fujairah.
The new debt facility, provided by First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Commercial Bank of Dubai, will replace the existing senior debt.
‘This refinancing is in line with Prostar’s strategy to further improve the financial and operating performance of our assets and enable further organic growth via robust capital expenditure programmes. We have built one of the most successful terminal facilities in the region, and this VLCC expansion will further align our interests with those of our customers as we look to meet growing energy demand, particularly in Asia, where the bulk of FOT’s product is delivered,’ says Dave Noakes, senior managing director at Prostar Capital.