Hogan Lovells Lee & Lee advises on the successful project financing of one of the largest crude oil and petroleum product storage terminals in the Middle East
22 February 2013
SINGAPORE, 22 February 2013 – Hogan Lovells Lee & Lee has advised the mandated lead arrangers on the successful project financing of the Fujairah Oil Terminal in the Middle East.
The complex loan, security and swap package for US$251,860,000 was arranged by Crédit Agricole Corporate and Investment Bank, First Gulf Bank PJSC, Maybank Investment Bank Berhad, National Bank of Fujairah PSC, Natixis, Dubai Branch and The Bank of Tokyo-Mitsubishi UFJ, Ltd, Dubai Branch regulated by DFSA. The borrower is a special purpose company set up in the Fujairah Free Zone having key long term storage contracts with Concord Energy Pte Ltd of Singapore and Sinomart KTS Development Limited of Hong Kong, a subsidiary of Sinopec Kantons Holdings Limited.
This project is of great strategic importance to the UAE – Fujairah is the second largest bunkering location in the world and is being developed as the main logistics hub for the UAE.
A number of pipeline projects are aiming to transport oil and gas from the Gulf region for storage and vessel offtake in Fujairah. Built in accordance with international standards, this crude oil and petroleum product storage terminal has an estimated capacity of 1.155 million cubic metres to store crude, fuel oil, gasoil, gasoline and jet fuel, enabling Fujairah to attract oil majors to utilise the facilities and meet the demand for modern tankage capacity.
The Fujairah Oil Terminal is expected to commence operations in 2014.
The Hogan Lovells team was led by James Harris, Singapore Office Managing Partner, with a team from the offices in Singapore, Dubai, Hong Kong, London and Washington, D.C.
Commenting on the transaction, James Harris said:
"This project financing is very significant in the current market, and we are pleased to have worked alongside the mandated lead arrangers and the sponsors to help achieve a successful financial close for this project."