04-09-2013

Oiltanking signs new JV to construct a commercial crude oil storage and blending terminal

Oiltanking Grindrod Calulo Holdings (Pty) Ltd a subsidiary of Oiltanking GmbH, and Mining, Oil and Gas Services Pty Ltd are pleased to announce a joint venture agreement to construct a commercial crude oil storage and blending terminal with a total capacity of 13.2 million barrels comprising twelve 1.1 million bbls concrete tanks in the Port of Saldanha Bay.

The development, construction, management and operations of the terminal will be carried out by the new company called “Oiltanking MOGS Saldanha (Pty) Ltd”. MOGS initiated the project in 2011 and has since completed the pre-feasibility studies and design and is in the final stages of obtaining the required statutory approvals. MOGS and OTGC will each hold 50 percent of shares in the company.

Port of Saldanha Bay is an excellent location for a crude oil hub as it is close to strategic tanker routes from key oil producing regions to major oil consuming markets. It is ideally situated for the blending of West African and South American crude oils. Port of Saldanha Bay has the potential to establish itself as a global crude transhipment hub focussed on certain established trade routes.

The new crude oil terminal in the Port of Saldanha Bay will be built as state-of-the-art facility in accordance with the highest technical, operational and environmental standards. The existing jetty can handle vessels up to VLCC (very large crude carrier) size.

Oiltanking Grindrod Calulo Holdings (Pty) Ltd is an independent bulk liquid storage provider in South Africa which combines world class expertise of Oiltanking GmbH in the field of bulk liquids handling with the local expertise and the full Black Economic Empowerment credentials of Grindrod South Africa (Pty) Ltd and Calulo Terminals (Pty) Ltd. Through direct holdings via Calulo and indirect holding via Grindrod South Africa, the joint venture is a fully empowered entity with a level 2 empowerment classification.