UAE’s Brooge Petroleum plans London listing before year end

UAE-based Brooge Petroleum and Gas Investment Co (BPGIC) plans to raise $400m in an initial public offering in London, which could be potentially launched before the end of this year, three sources familiar with the deal said.

The aim of listing the company, engaged in oil products and crude storage infrastructure in the United Arab Emirates, abroad, choosing London as a potential venue, is to have a more diversified investor base, said the sources, who declined to be named due to commercial sensitivities.

The IPO plan comes as the company plans to boost storage capacity for crude and oil products in the Fujairah oil hub in the UAE.

BPGIC has engaged HSBC and First Abu Dhabi Bank (FAB) as advisors to work on the public share sale, the sources said.

BPGIC, HSBC and FAB declined to comment when contacted by Reuters.

Located on the east coast of the UAE at the entrance to the Strait of Hormuz, Fujairah is one of two major bunkering ports in the region along with Oman’s Sohar and is a busy refuelling point for tankers taking crude on long voyages out of the Gulf.

The firm, one of the largest holders of storage assets in Fujairah, was set up in 2013. The first phase of 400,000 cubic metres of storage across 14 tanks for middle distillates and fuel oil was completed in October and began operations in January.

BPGIC is working on the second phase of its storage terminal, which will add 600,000 cubic metres of capacity for crude oil across eight tanks, the company said in a statement in April. The expansion is due to be completed by the fourth quarter of 2019.

Read: UAE’s Brooge Petroleum to expand Fujairah storage capacity