meed-logo

line1 line2 line3
SIGN IN / REGISTER

Dubai’s Gulf Navigation acquires Brooge Energy assets for $871m

17 June 2025

Register for MEED’s 14-day trial access 

Dubai-based Gulf Navigation Holding (GulfNav) has entered into a transaction with Nasdaq-listed Brooge Energy for a total consideration of AED3.2bn ($871m) for the purchase of the assets and subsidiaries of Brooge.

As part of the deal, Dubai Financial Market (DFM)-listed GulfNav will acquire Brooge Energy’s Fujairah-based subsidiaries Brooge Petroleum & Gas Investment Company FZE (BPGIC) and Brooge Petroleum & Gas Investment Company Phase 3 FZE.

GulfNav is an operator in the midstream oil and gas industry, specifically in the maritime transport and oil storage domains.

“The acquisition of Brooge, with its facilities for the storage of fuel oil, crude oil and petroleum products, is expected to double GulfNav’s storage infrastructure, particularly in Fujairah, a critical bunkering port in the UAE,” GulfNav said.  

The acquisition involves a settlement structure comprising cash, newly-issued shares and mandatory convertible bonds (MCBs), which include:

  • Issuance of 358.8 million new shares to Brooge Energy at AED1.25 a share, subject to a one-year lock-up
  • AED2.336bn in MCBs issued to Brooge Energy, convertible at AED1.25 a share
  • AED500m in MCBs exclusively offered to GulfNav’s existing shareholders at AED1.1 a share
  • A cash component of AED460m.

Following the agreement, both parties will “collaborate to meet all remaining conditions, including regulatory approvals, legal requirements and corporate actions”.

GulfNav will increase its capital, issue new shares to Brooge Energy and launch a capital raise via MCBs. The deal is expected to be finalised by the third quarter of 2025.

Also, following the transaction, Brooge Energy has decided to delist its shares from Nasdaq, with the last trading day of its shares on the exchange expected to be 19 June.

Brooge Energy had first mentioned it was in talks with “a company listed on the Dubai Financial Market to acquire all [of its] businesses and assets” last June, when it announced receiving a non-compliance letter from Nasdaq for failing to publish information about its operations, financial performance and corporate governance, under its obligation to file Form 20-F of the US Securities and Exchange Commission.

“As part of this process, the company is considering and evaluating a potential delisting from the Nasdaq market. If successful, it is estimated that the closing would happen during the third and fourth quarter of 2024,” Brooge Energy said in a statement on 5 June, 2024.

Oil storage business

The mainstay of Cayman Islands-based Brooge Energy’s business is crude oil and oil products storage, which is operated by its Fujairah-based subsidiary BPGIC.

BPGIC is an oil storage and services firm that was established in 2013 in Fujairah, and started operations with a capacity of 400,000 cubic metres spanning 14 tanks. In March 2022, it announced its intention to increase the storage capacity of four of those storage tanks in the first phase complex.

Separately, in September 2021, BPGIC started operations at the second phase of its Fujairah oil storage complex, which added 600,000 cubic metres of storage capacity across eight tanks. As a result of that expansion, BPGIC’s storage capacity more than doubled to 1 million cubic metres, or 6.3 million barrels, from 400,000 cubic metres.

BPGIC then undertook a third expansion phase of its oil storage facility, which is understood to have been commissioned in 2023.

The third phase increased BPGIC’s oil storage potential by three and a half times, raising its capacity to 3.5 million cubic metres, or 22 million barrels, and making the firm the largest oil storage services provider in the UAE emirate of Fujairah.

The third-phase expansion project consists of an oil storage facility that has a capacity of 2.5 million cubic metres, a modular 25,000 barrel-a-day (b/d) refinery and a larger 180,000-b/d conventional refinery.

Away from its oil and gas business, in June 2022, Brooge Energy announced its entry into the renewable energy sector with the creation of a wholly-owned subsidiary company named Brooge Renewable Energy (BRE).

As a first step, Brooge Energy said at the time that BRE planned to build a green hydrogen and green ammonia plant in Khalifa Economic Zone Abu Dhabi (Kezad) that would be able to produce up to 300,000 metric tonnes a year of green ammonia once completed.

BRE had signed a preliminary land lease agreement with Kezad for a 150,000 square metre plot, where the plant was to be built.

Brooge Energy has been embroiled in controversy in recent years. A restructuring executive from a management consultancy firm, working on the overhaul of the company, was detained in the UAE last year, but was later released.

https://image.digitalinsightresearch.in/uploads/NewsArticle/14081140/main04512327.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Power market reshapes contractor landscape

    16 October 2025

    Commentary
    Mark Dowdall
    Power & water editor

    Register for MEED’s 14-day trial access 

    The number of UAE-based power projects awarded under the traditional engineering, procurement and construction (EPC) model has fallen to its lowest level in the past decade.

    Admittedly, this does not include the Covid year of 2020, but the point stands. Across the GCC, capital is still flowing into the sector at record levels. What has changed is how that capital is being deployed.

    In a recent analysis, I revealed 2025 to be a record-breaking year, with the UAE’s power market recording its highest annual total for contract awards on record. Yet instead of a broad spread of smaller contracts, governments and utilities are concentrating investment in fewer larger and more complex schemes that are reshaping how the region’s energy systems are built and financed.

    In 2025, a single solar and battery storage independent power project (IPP) in Abu Dhabi accounts for 67% of the country’s total power contract value. EPC contracts, once the mainstay of the market, have been eclipsed by developer-led models as the preferred route for large-scale power generation.

    Saudi Arabia is moving in the same direction, albeit at a different pace. While EPC work remains central to grid expansion, the kingdom’s largest investments are now in utility-scale IPPs backed by the Public Investment Fund.

    In my recent annual ranking of private power developers across the GCC, the surge in power generation capacity owned by Saudi Arabia’s Acwa Power was telling. Not only did the firm’s net equity grow by 70% in a single year, but it now eclipses the combined equity of the other leading developers in the region, a direct result of its dominant role in PIF-backed schemes. These projects, including multi-gigawatt solar and wind developments, are redefining the scale and structure of procurement.

    Behind this shift is a combination of market maturity, financing strategy and energy transition goals. Developer-led projects concentrate capital and risk in fewer hands, streamline procurement timelines and align closely with long-term policy objectives.

    For governments, they deliver capacity without requiring large upfront capital commitments. For developers, they offer stable, long-term returns through secure offtake agreements.

    But this concentration also narrows the field of opportunity. Where dozens of smaller EPC packages once supported a broad ecosystem of contractors and suppliers, today’s market is increasingly revolving around a handful of mega deals.

    Competition is intensifying for fewer projects, and entry barriers, ranging from balance sheet strength to technical capabilities, are rising.

    Smaller EPC contractors, once central to power delivery across the GCC, risk being pushed to the margins. Some will adapt by partnering with larger developers, but others may find fewer opportunities to participate.

    Which takes me back to the UAE. In the water sector, 2026 is already shaping up to be a landmark year, with nearly $31bn-worth of projects in tender. A single project, Dubai’s $22bn Strategic Sewerage Tunnel scheme, accounts for over 70% of this total.

    It will follow a public-private partnership (PPP) delivery model that consolidates the entire scope under one consortium, streamlining delivery. However, this approach significantly reduces the number of prime contracting opportunities, with smaller EPC firms more likely to find themselves competing for limited subcontracting roles rather than leading bids.

    It is important to note that while large-scale projects tend to dominate during major build-out phases, attention inevitably turns to smaller, more distributed schemes.

    However, this alone does not necessarily mean a return to the EPC-heavy landscape of the past. For now, as these large projects set the pace, the region’s energy transition may accelerate, but it will also decide who gets to reshape and build it.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14884161/main.jpg
    Mark Dowdall
  • Saudi crown prince launches King Salman Gate project

    16 October 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Crown Prince, Mohammed Bin Salman Bin Abdulaziz Al-Saud, has launched a mixed-use development in Mecca known as King Salman Gate.

    The project will have a gross floor area of over 12 million square metres (sq m) and will be adjacent to the Holy Mosque in Mecca.

    The integrated mixed-use development will offer residential, hospitality, commercial and cultural facilities. The project will also add capacity for approximately 900,000 indoor and outdoor prayer spaces.

    The King Salman Gate project will be developed by Rua Al-Haram Al-Makki Company, which is backed by Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund (PIF).

    In an official statement published by the Saudi Press Agency, the firm said: "The project will also restore and develop approximately 19,000 sq m of heritage sites, preserving Mecca’s cultural and historical legacy. The project will contribute to Saudi Vision 2030’s goals of economic transformation through generating more than 300,000 jobs by 2036."

    The statement added: "The company aims to support the PIF’s strategy by advancing urban development around the Al-Masjid Al-Haram to establish Mecca as a global benchmark for real estate development."

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14882493/main.jpg
    Yasir Iqbal
  • Local firm wins Oman wastewater consultancy deal

    16 October 2025

    Register for MEED’s 14-day trial access 

    Muscat-based Monenco Consulting Engineers has been appointed as the consultant for a major wastewater network upgrade and extension project in Dhofar Governorate in Oman.

    The three-year contract was awarded by Nama Dhofar Services, a subsidiary of state-owned Nama Group responsible for elecricity, water and wastewater services in the southern Omani governorate.

    The project includes design and supervision services across civil, structural, mechanical, electrical, hydraulic and control disciplines. It is part of broader efforts to expand critical utility networks in the governorate, which is Oman’s largest by area.

    In February, Nama Dhofar Services commissioned the RO45m ($117m) Sahalnout sewerage project in Salalah, one of the largest wastewater infrastructure schemes in the Dhofar region.

    It said the scheme will serve 4,000 connection points initially, with plans for future expansion to accommodate up to 20,000.

    The utilities provider also recently carried out site assessments in the wilayat of Sadah for a planned wastewater treatment facility, part of its strategy to increase coverage from Salalah's current 76% to 95%.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14882927/main.jpg
    Mark Dowdall
  • Wood Group CEO to step down following takeover deal

    16 October 2025

    Register for MEED’s 14-day trial access 

    Ken Gilmartin has informed the board of directors of Wood Group of his intention to step down from his position as group CEO of the company and as a director on its board, according to a statement from the UK-based engineering company.

    The announcement comes less than two months after Wood agreed to a $292m conditional takeover bid from Dubai-based Sidara.

    Gilmartin will step down after an upcoming shareholder vote on the Sidara transaction and until then will remain in post to support an orderly transition, according to a statement from Wood.

    Iain Torrens, currently the company’s interim group chief financial officer (CFO), will take on the role of CEO following Gilmartin’s departure.

    A process is under way to identify a new CFO and further announcements will be made in due course on that appointment and the timing of Gilmartin’s departure, Wood said.

    The company’s chairman, Roy Franklin is also due to step down in the near future. In May this year, he said that he will step down “as soon as there is greater clarity regarding Wood’s future direction”.

    Commenting on the departure of Gilmartin and the appointment of Torrens, Franklin was quoted in the Wood statement as saying: “We are pleased to announce the appointment of Iain as Wood’s new CEO. Since joining the company earlier this year, Iain has demonstrated experience, leadership and decisiveness to guide the business through a very challenging period.

    “The board is confident he is well-placed to lead the company into its next chapter.”

    In June, Wood announced the appointment of Nick Shorten as the new executive vice-president of the company's projects business unit.

    Wood in Mena

    As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.

    In the Middle East, the company has project contracts in Iraq; Kuwait; Oman; Qatar; Saudi Arabia; and the UAE, where it has opened its third office in Sharjah.

    The firm’s regional projects pipeline includes pre-front-end engineering and design work on Saudi Aramco’s Southern and Northern Areas project in Saudi Arabia.

    It is also delivering integrated front-end engineering and design, detailed design, procurement support and construction and commissioning services for TotalEnergies in Iraq.

    Despite several years of financial difficulties, Wood Group’s integration into Sidara will significantly boost UAE-based engineering capacity – at a time when many firms in the Middle East and North Africa (Mena) region cite attracting and retaining top engineering talent as a major challenge.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14877262/main0259.jpg
    Wil Crisp
  • Saudi firm signs $5.4bn oil and gas contract in Algeria

    15 October 2025

    Register for MEED’s 14-day trial access 

    Algeria's national oil and gas company Sonatrach and Saudi Arabia-based Midad Energy have signed a hydrocarbons exploration and production sharing agreement related to Algeria’s Illizi South block.

    The agreement is valued at $5.4bn and has a duration of 30 years, with the option to be extended for an additional 10 years, according to a statement by Sonatrach.

    This contract was signed by Sonatrach CEO Rachid Hachichi and the CEO of Midad Energy North Africa, Sheikh Abdelilah Ben Mohamed Ben Abdellah Al-Aiban, at Sonatrach’s headquarters in Algiers.

    The investments for exploration and exploitation of the block, which is located about 100 kilometres south of In Amenas, will be financed entirely by Midad Energy and include $288m allocated for research investments.

    The contract has a research period of seven years and was singed within the framework of Algeria’s Law 19-13 for hydrocarbons, which came into effect in December 2019.

    ALSO READ: Algeria makes provisional award for downstream project

    In a statement, Sonatrach said: “The work programme associated with this contract will be implemented in strict compliance with environmental protection requirements and in accordance with applicable Algerian regulations.

    “This programme also includes the use of the latest technological and digital solutions,” it added.

    Projected production from the Illizi South offshore development by the end of the contractual period is estimated at 993 million barrels of oil equivalent, including 125 billion cubic metres of marketable gas and 204 million barrels of liquid fuels.

    The expected 204 million barrels of liquid fuels includes 103 million barrels of liquefied petroleum gas (LPG) and 101 million barrels of condensates.

    The latest contract signed by Sonatrach and Midad Energy follows on from an agreement protocol concluded between the two companies on 3 March 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14866259/main1744.jpeg
    Wil Crisp