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JTC Corporation (JTC) has awarded the Jurong Rock Caverns (JRC) operatorship to Banyan Caverns Storage Services Pte Ltd. (BCSS), a consortium comprising Vopak Terminals Singapore Pte Ltd. (45%), Geostock SAS (35%) and Jurong Consultants Pte. Ltd. (20%).

The operatorship will be for a period of 15 years and has a contractual value of approximately S$200 million.

The award of the operatorship has been called a key milestone for the first phase of the Jurong Rock Caverns – Southeast Asia and Singapore’s first subterranean hydrocarbon storage facility located at Jurong Island.

The operator will manage, operate and maintain the ancillary and underground facilities at the JRC, but will not handle the sales and marketing of storage services of the JRC. These facilities include the five oil storage caverns, underground tunnels, Mechanical, Electrical and Instrumentation (MEI) equipment such as fire-fighting and ventilation systems, and supporting facilities such as the jetties which will transport the oil to and from the JRC.

The process to select an operator involved a two-stage Request-for-Proposal (RFP). In the first stage of pre-qualification, the RFP respondents were required to submit business proposals and were shortlisted based on criteria such as financial stability, experience, capability and track record. Shortlisted RFP respondents were then invited to submit their proposals in the second stage during which each respondent was then evaluated based on individual merits, with emphasis on the fee as well as technical, commercial and legal propositions.

Commenting on behalf of the consortium, Managing Director of Vopak Terminals Singapore, Mr. Teo Seow Ling, said: "This is a milestone project for Singapore and for the consortium partners, and we are delighted to be awarded the operatorship contract by JTC. Leveraging on the strengths of each partner, we are optimistic that the consortium will bring value to the safe operation of the JRC. Following the award, we will be transferring employees from the consortium companies to fill key positions in BCSS."

This is the second contract which JTC has awarded for the first phase of JRC. In September 2013, JTC awarded the contract for the supply of nitrogen to Air Products Singapore Pte Ltd. The nitrogen is an inert gas and will be used as a blanketing gas for the oil storage caverns for safety purposes. The completion of Phase 1 is scheduled for the second half of 2014.