By aiming to become the first of its kind oil and petroleum products storage facility in West Africa, the Bioko Oil Terminal will transform Equatorial Guinea into a pivotal trading and services hub in the West African region.
This development follows the signing of an agreement in Saudi Arabia between the Government of Equatorial Guinea and Arabian Energy DMCC to work together on the Bioko Oil Terminal.
The prospects of the petroleum tank farm gained some important momentum on May 11 when the two sides agreed to collaborate on the development, implementation, construction and financing of the $500 million project.
“The Bioko Oil Terminal is a first of its kind storage facility for West Africa and would bring to the region energy security and transport economies of scale and efficiencies like we have never been before,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea. “We welcome the addition of Arabian Energy and look forward to working together to move this project into realization.”
Bioko Oil Terminal brings several advantages for the region. It creates an African center for the distribution of petroleum products and crude oil and would stimulate the West and Central African industry through job creation and the reduction of imports. The tank farm would attract investment, build local financial capacity and increase shipments to key exports markets.
With 22 storage tanks and a total capacity of 1.2 million cubic meters, Bioko Oil Terminal would be built in two phases, the first consisting of refined production and the second capable of storing, handling and blending middle distillates and lights ends such as diesel, jet fuel, gasoline and naphtha, as well as crude oil. The shared terminal infrastructure will be operated on a “first come, first served” basis.