March 11, 2011 [Reuters] - Cyprus has received expressions of interest from 10 companies for a project to build an oil storage terminal together with the government, providing a capacity of at least 300,000 cubic metres.
The project will be run jointly by the Cypriot government and the sucessful bidder for a period of 25 years.
The expressions to prequalify potential strategic partners will be assessed and a short list compiled for negotiations, an official told Reuters on Friday, declining further comment.
Cypriot authorities are looking for an investor with a background in developing and operating storage terminals. The invitation to tender also seeks a partner to provide a minimum investment of 100 million euros ($138.1 million).
The east Mediterranean island now stores 90 days of oil stocks on Cyprus, in Greece and the Netherlands.
In addition to meeting domestic needs, the Vassilikos Oil Terminal (VOT) could accomodate petroleum product stocks for regional trading.
Oil trading giant Vitol started constructing its own oil storage facility in the Vassilikos region in January. The complex will have a 340,000 cubic metre storage capacity initially, increasing to 550,000 cubic metres in the second stage of the project.
