Dubai-based maritime and shipping company Gulf Navigation (GulfNav) has submitted a formal proposal to fully acquire all businesses and assets from fuel and crude storage provider Brooge Energy Limited.
GulfNav stated that this proposed acquisition was part of its strategy to enhance growth and provide an integrated portfolio of logistical services related to oil, petrochemicals, and gas.
According to the company, the proposed acquisition is still in an early stage, as GulfNav is in the process of conducting further due diligence on the company and its legal and financial advisors continue to evaluate the proposed transaction.
Brooge Energy has not responded to GulfNav’s proposal and there is no guarantee it will be accepted. Regardless, the Dubai-based firm is optimistic that the proposed transaction could be closed in the fourth quarter of 2023.
It is noteworthy that Brooge Energy’s subsidiary Brooge Petroleum and Gas Investment Company FZE is currently one of the most technologically advanced companies in the crude oil storage services sector and has a strong presence in the Emirate of Fujairah which is an important hub in oil storage.
Expectations indicate that the oil storage sector in the UAE will witness further development considering the growing demand witnessed by the market.
GulfNav owns a fleet of four Type 2 chemical tankers – the 2009-built Gulf Deffi and Gulf Jalmuda and the 2008-built Gulf Huwaylat and Gulf Fanatir. Aside from the tankers, it owns an IRS-class well-stimulation vessel Allianz Warrior, livestock carrier Gulf Livestock, and four offshore supply vessels.
