Concord Energy completes sale of 50% interest in Fujairah Oil Terminals

Concord Energy Pte Ltd, a trading company based in Singapore, announced the completion of the sale of a 50% interest in Fujairah Oil Terminals FZC (FOT) to Sinomart KTS Development Limited (“Sinomart”).
Sinomart is a 100% owned subsidiary of Sinopec Kantons Holdings Ltd. Following the sale to Sinomart, Concord maintains a 50% shareholding in FOT.
“We are delighted to confirm the completion of the sale of 50% of the FOT project to Sinomart,” said John Stuart, CEO Assets Group Concord Energy Pte Ltd. “Sinomart’s investment is a huge endorsement of the strategic importance of our Fujairah project, and brings valuable expertise in oil storage operations.”
“In addition, and despite very tough credit markets, FOT recently signed binding agreements for the provision of a US$252 million senior debt facility with a consortium of six international banks. We expect construction of the tank farms to start this month with commercial operations commencing in the 4th quarter of 2014,” he said.
FOT is an independent 1,155,000 cubic meter oil storage facility in the Emirate of Fujairah, United Arab Emirates. The facility will have the capability to store crude oil, bunker fuel, gasoline, diesel fuel and other petroleum products. The facility will also offer additional services such as product mixing, blending and heating.
Rotary Engineering Ltd. is the main EPC contractor, and construction is expected to take 21 months. FOT is located in the Fujairah Free Zone, adjacent to the Port of Fujairah, which is strategically located along the Gulf of Oman, just outside the Straits of Hormuz. This is an ideal location to serve the Middle East’s local and regional markets and to act as a hub location to facilitate global trade flows. (January 8, 2013)