Prostar Capital has completed a major refinancing exercise for the Fujairah Oil Terminal (FOT), securing a new $280 million debt facility. The funds will be used to increase liquidity, and also for a major VLCC expansion project that will improve operational efficiency and help the terminal build on its customer base for years to come.
Once completed, the planned project will connect FOT’s crude oil tanks to the Port of Fujairah’s VLCC loading facility via the Matrix Manifold 2 (MM2) and the ADCOP pipeline, which is currently being extended to MM2. The improvements are expected to increase FOT’s competitiveness, expand its customer base and improve operating efficiency. It will also allow the terminal to take advantage of the expected growth in crude trading in the region.
A group of major regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Commercial Bank of Dubai, provided the new debt facilities. Dave Noakes, senior managing director at Prostar Capital, says, “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.”