One of the world's largest oil trading companies Gunvor Group, owned by Russian businessman Gennady Timchenko, will build an oil storage facility and terminal in Sao Tome and Principe, an island country near the western equatorial coast of Central Africa, the Vedomosti business daily newspaper reported on Friday quoting a Gunvor official.
The company, which is registered in the Netherlands, hopes the oil loading terminal will become a regional hub to transport oil from Africa. The Sao Tome terminal will be the first Gunvor terminal outside Russia and the first fully controlled by the company.
The official did not specify the cost of the project and capacities of the terminal.
Market sources told the paper that investment in the project might be from $250 million to $375 million. Gunvor will also face large spending on security of the staff due to political instability in the region.
Oil reserves in Western African states amount to about 58 billion barrels, while daily oil production in the region stands at five million barrels, which equals half the output per day of Russia.