Published On: Thu, Feb 22nd, 2018

The Bahamas to get US$4.5 billion oil refinery and storage facility

oban-signingNASSAU - US-based Oban Energies is developing a US$4.5-billion oil refinery and oil storage facility off the southern tip of Grand Bahamas Island.

Prime Minister Dr Hubert Minnis says the project is expected to create 600 direct jobs and 1,000 indirect jobs during the construction phase.

The project will launch with an initial capacity of four million barrels, with plans to expand capacity to 20 million barrels by year four of facility operation. Oban Energies will construct a harbour and deep-sea loading docks to service large vessels, as well as a 50,000 barrel per day petroleum refinery, with plans to expand to 250,000 barrels per day by year four.

Representatives from the government and Oban Energies on Monday signed the Heads of Agreement (HOA) that paves the way for the Environmental Impact Assessment (EIA) process.

The EIA, which is already underway, will ensure that the project advances in an environmentally safe and sustainable manner.

Prime Minister Minnis said the signing was “an important step in the approval process for Oban Energies.”

“In December of 2016, the Government of The Bahamas approved Oban Energies to proceed with the construction of an oil refinery and oil storage facility in Grand Bahama.

“My Government is pleased to have moved this project forward and has successfully completed negotiating the Heads of Agreement, which paves the way for the commencement of this important project,” he said.

Oban envisions that the terminal will play a key strategic role as one of only two facilities close to the US Gulf and East Coasts for deep water marine terminal servicing of crude and other products that are unloaded from large tankers at the marine terminal and either stored or loaded onto smaller ships that can access the shallower water berths along the East Coast and the Caribbean.

Caption: Camille Johnson, Secretary to the Cabinet, on behalf of the Bahamas Government, and Peter Krieger (right) of Oban Energies, signing the Bahamas Government/Oban Energies Heads of Agreement. Also pictured are Prime Minister, Dr Hubert Minnis (second from right); Deputy Prime Minister and Minister of Finance Peter Turnquest (second from left); and Minister of State for Grand Bahama in the Office of the Prime Minister, Senator Kwasi Thompson (left). (Photo credit: BIS/Peter Ramsay)

Click Tag(s) for Related Articles: