According to local media reports, the unnamed Taiwanese firm is due to sign a contract in March with eSwatini’s Ministry of Natural Resources and Energy.
Construction of the oil reserve is estimated to cost US$64.3 million and is expected to employ more than 300 people.
Natural Resources and Energy Minister Peter Bhembe said the eSwatini government has cancelled the Build, Own, Operate and Transfer agreement that it entered into with Kantey and Templer Swaziland in 2013.
“We are currently in the process of renewing the designs,” Bhembe said.
Under the previous agreement, Kantey and Templer would have transferred ownership of the facility to the eSwatini government at the end of 20 years following completion of construction activity.
The reserve, located at Phuzumoya in the Lubombo region, is expected to have capacity to store 42 million litres of diesel and 38 million litres of petrol.