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
  • 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
  • Indian company wins gas project contract in Kuwait

    15 October 2025

    Register for MEED’s 14-day trial access 

    State-owned upstream operator Kuwait Oil Company (KOC) has awarded a contract for its planned project to develop a gas sweetening and recovery facility in West Kuwait to Indian contractor Megha Engineering & Infrastructure (MEIL).

    Hyderabad-based MEIL submitted the lowest bid for the tender, at KD69.2m ($225.5m), in February this year.

    The full list of prices that were submitted was:

    • L1 – MEIL (India): KD69.2m
    • L2 – Al-Khorayef (Saudi Arabia): KD74.5m
    • L3 – Mechanical Engineering & Contracting Company (Kuwait): KD94.8m
    • L4 – China Oil HBP Science & Technology Corporation (China): KD97.9m
    • L5 – Spetco (Kuwait): KD99.5m
    • L6 – Jereh Oil & Gas Corporation (China): KD102.8m

    The project uses the build-operate-transfer contract model and has been split into two parts. KOC has informed contractors that the two stages will be performed independently.

    The project execution stage will cover:

    • Licensing
    • Design
    • Engineering
    • Health, safety and environment services
    • Project management
    • Supply
    • Shipment
    • Procurement
    • Construction
    • Testing
    • Mechanical completion
    • Pre-commissioning
    • Commissioning
    • Stabilisation
    • Performance testing of the facility

    The operation and maintenance stage will cover:

    • Operation and maintenance of the facility
    • Performance of all associated safety, quality control and environmental protection services
    • All other inherent and related obligations

    In November 2024, KOC's parent entity, Kuwait Petroleum Corpration (KPC), confirmed that it plans to spend $410bn on its long-term energy strategy.

    Bader Ebrahim Al-Attar, KPC’s managing director of planning and finance, said the company plans to spend the money until 2050.

    The strategy involves raising KPC’s overall oil production capacity to 4 million barrels a day by 2035.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14866258/main0806.jpg
    Wil Crisp
  • Firms submit interest for Saudi high-speed rail

    15 October 2025

    Register for MEED’s 14-day trial access 

    Firms have expressed interest on 12 October in the Qiddiya high-speed rail project, which will connect King Salman International airport and King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Saudi Arabia's Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, issued the expression of interest notice to the market in September.

    Also known as Q-Express, the railway line will travel at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The project was previously planned to be developed under a conventional model, but will now progress under a public-private partnership (PPP) model.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole – which is understood to include the Public Investment Fund’s proposed 2-kilometre-tall tower – and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

    UK-based consultancy Ernst & Young is acting as the transaction adviser on the project. Latham & Watkins is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14867663/main.png
    Yasir Iqbal
  • Qatar’s Ashghal awards $305m road contracts

    15 October 2025

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has awarded two contracts worth over QR1.1bn ($305m) for the construction of roads and infrastructure networks in the Izghawa and Al-Themaid areas in the northwest of Doha.

    The contract for the first package, valued at over QR688m ($190m), was awarded to local firm Al-Mohannadi for Roads & Trading & Contracting.

    The contract for the second package was awarded to another local firm, Attikat. The value of the contract is QR418.4m ($115m).

    This project involves the construction of a single- and dual-carriageway road network in the area. 

    The scope includes the construction of carriageways, footpaths, parking areas, kerb lines, traffic signs and road markings, pedestrian guard rails, fencing, traffic signals, street lighting, landscaping and irrigation systems.

    The scope also involves surface/groundwater drainage systems, foul water drainage systems, treated sewage effluent irrigation, potable water network systems, electricity networks, a telecommunications infrastructure network and other associated facilities.

    The construction period is three years.

    The proposed development includes a residential area comprising over 1,262 housing plots, 133 utility plots, 32 government plots, 28 open spaces, four commercial centres, nine mosques, two transportation and four education facilities.

    In June 2022, Qatar’s Transport Ministry unveiled the Transportation Master Plan for Qatar 2050. The plan supports 286 projects, including 86 highway schemes, 22 for goods transport, 54 public transport schemes, 21 for pedestrians, 29 cycling schemes and 74 cross-modal and integration projects.

    The future highway schemes entail 37 infrastructure packages totalling 770 kilometres (km), 22 truck schemes and 10 infrastructure and facilities schemes. The public transport programme comprises 30 schemes for upgrading the main 540km public transport network.

    The masterplan also includes long-distance, metro and regional rail network plans.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14867823/main.jpg
    Yasir Iqbal
  • L&T announces UAE grid substation award

    14 October 2025

    Indian industrial contracting conglomerate Larsen & Toubro (L&T) has announced several new grid infrastructure orders, including the engineering, procurement and construction of a 400kV substation in the UAE.

    The facility, awarded to L&T's Power Transmission & Distribution business, forms part of the planned 400kV interconnection between Oman and the GCC grid.

    The interconnection will enable a direct 400kV link between Ibri in Oman and Al-Sila in the UAE. It involves around 528 kilometres of overhead transmission lines, expansion of the existing Al-Sila substation and the development of two new 400kV substations, one in each country.

    MEED understands the substation to be built by L&T is a planned 400kV intermediate substation near Madinat Zayed in the UAE.

    L&T also said it has secured an order for the construction of a series of 132kV substations in the Middle East to cater to rising power demand. No other details were given and it is unclear where these substations will be located.

    In Saudi Arabia, the company has received a contract for the construction of 380kV overhead transmission lines associated with the integration of renewable energy power plants.

    It is understood that these contracts are for Saudi Electricity Company's Al-Khurma 1 and Al-Khurma 2 projects in Mecca, for which L&T submitted the lowest bids earlier this year.

    ALSO READ: L&T announces QatarEnergy NGL train project award
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14863247/main4046.jpg
    Mark Dowdall