(EnergyAsia, January 11 2013, Friday) — Hong Kong-based Sinopec Kantons Holdings Limited, which is building an oil storage project in Indonesia and expanding into Europe, has bought a 50% stake in a Fujairah project being developed by

Singapore’s Concord Energy Pte Ltd.

The Sinopec subsidiary said its fully owned subsidiary, Sinomart KTS Development Limited, will pay US$25.05 million, with the option to purchase a further one percent of Fujairah Oil Terminal FZC (FOT)’s issued share capital for US$9.001 million.

Concord Energy expects to soon start construction work on the 1.155-million cubic metre Fujairah Oil Terminals FZC (FOT) in the UAE’s Fujairah Free Zone. When completed in late 2014, the terminal, located next to Fujairah port, will store crude oil, bunkers, gasoline, diesel and other oil products. It will also provide additional services such as product mixing, blending and heating.

Concord said the project recently concluded US$252 million in debt financing agreements with six international banks.

John Stuart, CEO of Concord’s Amity Energy Pte Ltd, said:

“Sinomart’s investment is a huge endorsement of the strategic importance of our Fujairah project, and brings valuable expertise in oil storage operations.

“Despite very tough credit markets, FOT recently signed binding agreements for the provision of a US$252m 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 fourth quarter of 2014.”

Rotary Engineering Limited is the main engineering, procurement and construction (EPC) contractor for the terminal located along Gulf of Oman, just outside the Straits of Hormuz.