The future of east Africa’s only refinery will be decided next week, when a report is due on whether to upgrade the Mombasa plant or turn it into a storage facility. Fuel contributors have long complained about the poor quality products produced at the refinery, which they are obligated to purchase under Kenyan law.
India’s Essar Energy, which co owns the refinery with the Kenyan government, has said that it wants to raise US$ 1.2 billion for a substantial upgrade.
Kuwait’s cabinet has suspended several senior oil executives over a US$ 2.2 billion penalty paid to Dow Chemical for the scrapping of a joint venture. A judicial investigation has been ordered into the decision by senior officials at state owned Petrochemicals Industries Co (PIC) to withdraw from the deal.
Essar Oil Ltd is likely to sign an agreement with a Chinese bank for a US$ 1 billion loan. This loan will form part of the company’s efforts to tap overseas funds in order to refinance on expensive local debt.
The likely deal will be supported by an agreement to supply fuel products from Essar’s refinery in Western India to China’s PetroChina Company.
The State Oil Company of Azerbaijan (SOCAR) is seeking US$ 3 billion to help finance a planned refinery in Western Turkey. UniCredit SpA (UCG) will arrange a loan with Turkish and international lenders.
The refinery, once completed, will process 10 million t of crude per year, producing 1.3 million t of naptha, as well as diesel and jet fuel.
Managing Director of National Iranian Oil Pipeline and Telecommunications Company, Ali Ziyar, has announced that the country has boosted its crude refining capacity to over 1.8 million bpd, additionally indicating that these figures are likely to increase further over the course of the current Iranian calendar year.
Iran’s refining capacity rose by 7 million t in the last calendar year, after the launch of several new petrochemical projects.
Adapted from various sources by Emma McAleavey.
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