Brooge Petroleum and Gas Investment Co (BPGIC) has leased oil storage facilities in the United Arab Emirates to France's Total, industry sources familiar with the matter said, as global crude storage rapidly fills up.
The company is leasing six storage tanks in the UAE emirate of Fujairah for six months and this could be renewed for another six months, one of the sources said.
The tanks, which store oil products, have already received initial cargoes, two of the sources said.
Read more: Oil set for first weekly gain in a month as OPEC+ output cuts come into effect
BPGIC and Total did not respond to a request for comment.
Global oil storage is filling swiftly as lockdowns to halt the spread of the coronavirus pandemic hammer consumption, driving down global demand for crude and its products, such as gasoline, diesel and jet fuel, by as much as 30 percent.
The Organization of Petroleum Exporting Countries, Russia and other allied producers have agreed to rein in supplies from May but the cuts amounting to about 10 percent of global crude production has still left the world awash with oil.
Read more: Coronavirus: Oil major Shell slashes dividend for first time since World War Two
UAE-based BPGIC, established in 2013, plans to expand its storage capacity for crude and oil products to around 3.5 million cubic metres, from 1 million cubic metres now.
It is already one of the largest holders of storage assets in Fujairah, which is itself among the world's largest bunkering hubs.
Coronavirus, oil crash impact on Saudi Arabia’s economy to be felt from Q2: MinisterThe impact of the coronavirus pandemic and collapsed oil prices on Saudi Arabia’s economy and finances will show in the results of the second quarter ... Coronavirus
Moody’s downgrades Saudi Arabia’s outlook to ‘negative’ on crash in oil pricesRating agency Moody’s cut Saudi Arabia’s outlook to “negative” from “stable” on Friday, citing the risks to the Kingdom’s fiscal strength due to the ... Economy
Iraq oil exports at 3.44 mln bpd, revenues more than halve in April: StatementIraq's revenues plummeted in April amid a historic oil price crash, the Oil Ministry said Friday, raising concerns over how the country will cope ... Energy
Saudi Arabia foils attempt to smuggle 19 mln amphetamine pills in Syrian containersSaudi Arabia’s authorities foiled an attempt to smuggle 19,264,000 amphetamine pills into the Kingdom and arrested four people involved, the General ... Gulf