UAE - Mubasher: Prostar Capital, an energy infrastructure company, has completed a $280 million refinancing for its portfolio company Fujairah Oil Terminal (FOT).
The new debt facility will replace the existing senior debt and fund the connection of the terminal to the Very Large Crude Carrier (VLCC) jetty and ADCOP pipeline, which delivers Abu Dhabi's Murban crude to Fujairah, according to a press release on Wednesday.
FOT is a 7.4 million-barrel bulk liquid storage terminal located in the Port of Fujairah, an energy trading centre in the UAE and one of the world's largest bunkering ports.
Upon its completion, the capital project will connect the terminal's crude oil tanks to the Port of Fujairah's VLCC loading facility through Matrix Manifold 2 (MM2) and the ADCOP pipeline, which is currently being extended to MM2.
The project is in line with the recent launch of the world's first Murban futures contract, which requires physical delivery in Fujairah.
The Senior Managing Director at Prostar Capital and Chairman of FOT, Steve Bickerton, said: "Not only have we secured more favorable terms and increased liquidity, but also the capital to fund a major VLCC expansion project that will improve operational efficiency and help the facility build on its loyal customer base for years to come."
Meanwhile, the Senior Managing Director at Prostar Capital, Dave Noakes, commented: "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 programs."
