IOC may go for $9 bn refinery JV in Egypt
The project is currently in the evaluation stage and proposed to be commissioned in five years with a debt-equity ratio of 65:35. It's all about Green Investing
By Rajeev Jayaswal, TNN |
NEW DELHI: Indian Oil (IOC) is embarking on an Egyptian safari. The company is planning a joint venture with Egyptian General Petroleum Corporation (EGPC) for building a refinery in the oil-rich country.
As a bonus, IOC would get preferential treatment in allotment of oil and gas assets in that country. It is learnt from Egyptian officials that the proposed project could be the $9-billion refinery-cum-petrochemical complex near Gamasa or Port Said.
“We have formally agreed to work out details of the project. So far, we have not finalised location or composition of the refinery,” IOC director planning & business development BM Bansal told ET. The proposal was mooted during petroleum minister Murli Deora’s Cairo visit earlier this year.
Cairo-based consultant Enppi and New Delhi’s Engineers India Ltd (EIL) have been identified by the two potential partners to carry out feasibility studies.
“The final decision would, however, be taken by a joint working group,” an official said. Stressing on the significance of timeliness, he said, “The two parties have agreed that the feasibility study for the refinery project and preferential exploration & production (E&P) and farm-in opportunities will be explored expeditiously and completed within six months.”
The $9-billion greenfield refinery-cum-petroleum complex, showcased by the Egyptian government, could be one of the options, sources said. The project is currently in the evaluation stage and proposed to be commissioned in five years with a debt-equity ratio of 65:35. The production capacity of the plant is stated to be 20 million tonnes per annum or 350,000 barrels per day.
Egypt intends to set up a complex, which could produce high quality petroleum products confirming to European specifications.
A public sector company, EGPC is responsible for exploration and production of crude oil in Egypt. It is operating eight of the nine existing refineries in the country. Egypt plans to set up new refineries for export.
As a bonus, IOC would get preferential treatment in allotment of oil and gas assets in that country. It is learnt from Egyptian officials that the proposed project could be the $9-billion refinery-cum-petrochemical complex near Gamasa or Port Said.
“We have formally agreed to work out details of the project. So far, we have not finalised location or composition of the refinery,” IOC director planning & business development BM Bansal told ET. The proposal was mooted during petroleum minister Murli Deora’s Cairo visit earlier this year.
Cairo-based consultant Enppi and New Delhi’s Engineers India Ltd (EIL) have been identified by the two potential partners to carry out feasibility studies.
“The final decision would, however, be taken by a joint working group,” an official said. Stressing on the significance of timeliness, he said, “The two parties have agreed that the feasibility study for the refinery project and preferential exploration & production (E&P) and farm-in opportunities will be explored expeditiously and completed within six months.”
The $9-billion greenfield refinery-cum-petroleum complex, showcased by the Egyptian government, could be one of the options, sources said. The project is currently in the evaluation stage and proposed to be commissioned in five years with a debt-equity ratio of 65:35. The production capacity of the plant is stated to be 20 million tonnes per annum or 350,000 barrels per day.
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Egypt intends to set up a complex, which could produce high quality petroleum products confirming to European specifications.
A public sector company, EGPC is responsible for exploration and production of crude oil in Egypt. It is operating eight of the nine existing refineries in the country. Egypt plans to set up new refineries for export.
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