Cyprus is seeking expressions of interest from private investors to
build a new 300,000 cubic metre oil storage facility on its southern
coast, government documents seen by Reuters showed.
The project,
estimated to be worth a minimum of 100 million euros, will be run
jointly by the Cypriot government and the successful bidder for a period
of 25 years.
Cypriot authorities are looking for an investor
with a background in developing and operating storage terminals to
participate in the project.
The private investor will cooperate
with the state-controlled Electricity Authority (EAC), and KETAP and
KODAP, two government appointed agencies responsible for storing and
managing oil stocks.
The Vassilikos Oil Terminal (VOT) was also
expected to accommodate petroleum product stocks for regional transit
trading, expression of interest documents said.
Oil trading giant
Vitol [VITOLV.UL] is due to start constructing its own oil storage
facility in the same area on the Mediterranean island next month. Its
340,000 cubic metre storage facility will exceed a 100 million euro
initial investment. [ID:nLDE6B61VO]
Cyprus stores 90 days worth
of oil stocks on the island, in Greece and the Netherlands.
Based
on 2009 average consumption, its strategic oil stocks total about
607,770 metric tonnes. That was expected to decline to about 435,000
metric tonnes by 2015, when natural gas is introduced into the market
and demand for heavy fuel oil drops.
Authorities said "five or
six" companies had already been supplied with expression of interest
documents since Dec. 17.
Investors that responded by a Feb. 11,
2011 deadline would go through a prequalification process for
short-listing applicants, which would then enter a negotiation
procedure.
The Commerce Ministry said this would be the only
procedure to formally express an interest in potential participation in
the terminal.