OIL STORAGE & REFINERY
Phase 1 requires an $1.5 Billion investment for development, construction, and start up operations. The Project will provide storage tankage for crude oils, residual fuel oils, middle and light distillates, specialty vegetable oils and heavy oils, and will consider all other bulk liquid storage requests. The Project will launch with an initial capacity of 4 million barrels, with plans to expand capacity to 20 million barrels by year 4 of facility operation. In addition, Oban Energies will construct a 50,000 barrel per day petroleum refinery, with plans to expand to 250,000 barrels per day by year 4 of the facility operation.
The Caribbean is made up of relatively small islands with small ports. There are limited sizes of liquid bulk tanks, making logistics with small vessels and delivery complicated and expensive. As demand for fuels has increased, there has become a great need for large volume liquid bulk storage terminals as strategic hubs with high throughputs for the suppliers of various products. Oban Energies’ location along the Northwest Providence Channel off the southern tip of Grand Bahamas’ Island, which is 90 miles (145 kilometers) from the U.S. Eastern Seaboard, meets this need.
Currently, the Grand Bahamas’ Island is being used by other energy firms for storage, bunkering and blending. It is used as a holding area for forwarding crude oil deliveries to North America and as a “break-bulk” point for transshipment operations. In addition, fuel oil and lighter products may also be transshipped at the proposed sea island. The relatively shallow water access to the United States Gulf Coast and East Coast ports requires the final delivery segment of the crude oil voyage from the North Sea, Middle East, North Africa and other foreign origination points to these regions be accomplished in smaller shuttle-size vessels.
Phase II is to build an up to 250,000 barrel per day oil refinery. The facility would be a merchant refinery designed to process less expensive heavy crude with the flexibility to process opportunity crude, as dictated by market economics. The refinery will be designed to fully upgrade heavy sour crude oil and produce quality products in order to address premium markets for oil products.
The deepwater port provides the capability to utilize lower cost VLCC crude deliveries. This produces a cost advantage over US Gulf Coast and US East Coast refineries which require lightering. The Bahamas are an excellent location for higher netback product sales to the US, since the Bahamas is exempt from US product import duties as a member country under the Caribbean Basin Trade Partnership Act. The location also provides the ability to compete in opportunity markets in Europe and the Caribbean Basin. Preliminary project costs are estimated to be up to $3.5 billion.