Egypt’s Wepco kicks off the first phase of USD 420 oil storage project

More crude oil storage for Wepco: Egypt’s Western Desert Operating Petroleum Company (Wepco) is looking to establish and operate four crude oil storage tanks and trading facilities worth USD 210 mn in the Western Desert, Al Arabiya reports, citing a company source with knowledge of the matter. The new oil storage infrastructure is part of the first phase of expansions at the Al Hamra oil terminal and will boast capacity in excess of 2.5 mn barrels, the source said.

What we know: The added storage capacity is expected to contribute to oil storage and export operations for the upcoming 2024 - 2025 fiscal year, the source explained. Work on the facilities is reportedly 90% complete with trial runs slated for June and July.

There’s more to come: The second phase of the storage project will include another four crude oil storage tankers and trading facilities and is set to be completed in 1Q 2025, the source added. The total investment ticket for the project amounts to USD 420 mn.

About Wepco: The state-owned company handles storage and trade operations for crude oil output from Egypt’s Western Desert with Al Hamra oil terminal, the sole oil trading port on Egypt’s Mediterranean coast. Crude oil from Al Hamra is transferred to tankers for export, and via pipelines for domestic use.