South Africa-based oil and gas company SacOil has signed a memorandum of understanding (MoU) to carry out a detailed assessment for the development of the Bioko Oil Terminal tank farm in Equatorial Guinea.
The MoU was signed with the Ministry of Mines, Industries and Energy of Equatorial Guinea, Taleveras Exploration and Production DMCC, Gunvor Group and the Strategic Fuel Fund Association.
Development of the oil and petroleum products storage facility, Bioko Oil Terminal is spearheaded by the Ministry of Mines, Industry and Energy of Equatorial Guinea.
“The project fits well with the Company’s overall strategy of diversifying the business into midstream and downstream activities.”
Upon completion, the terminal is expected to become the premier storage location in West and Central Africa.
The MoU is intended to provide the general principles as well as key terms for cooperation between the parties to support the project advancement.
Under the MoU, the parties are required to execute a joint development agreement (JDA) governing the execution of the next phase.
Upon completion of the pre-feasibility studies, the agreement would be executed.
SacOil CEO Dr Thabo Kgogo said: “SacOil welcomes this opportunity to work with a strategic partner such as the Ministry of Mines, Industries and Energy to add needed oil and petroleum products storage capacity in West and Central Africa.
“The project fits well with the Company’s overall strategy of diversifying the business into midstream and downstream activities.”