MOZAMBIQUE - The Mozambican company planning to build a greenfield $8-billion oil refinery in Maputo by 2013, OilMoz, would receive $50-million from financiers this week to fund the feasibility studies for the project, as well as for the construction of the first infrastructure on site, CEO Fausto Cruz said.
He added that this would be the company’s first investment on the project and would include the construction of housing for employees and water and electricity facilities.
The 350 000-bl/d oil refinery will produce refined fuel and was approved by the Mozambican government in April last year. It is one of two new oil refinery projects to be developed since the country’s last refinery had closed more than 20 years before.
Work on the feasibility studies, which was being undertaken by business and operational consulting firm Shell Global Solutions International, had already started and was expected to be completed by about September, said Cruz.
The consulting firm was also appointed to conduct a configuration study and to prepare a basis of design for the refinery.
Cruz added that the company also expected to obtain environmental approvals from the government in the next two to three weeks.
OilMoz had already, in addition to the $50-million in funding, secured a portion of the financing required for the project, Cruz confirmed, but said that it was still in talks with banks regarding further funding requirements.
Construction on the refinery would start by the end of this year, with production scheduled to start within three to four years after the start of construction.
The bulk, or about 95% of the refined fuel, would be exported to other Southern African Development Community countries, said Cruz.
The project would create about 15 000 temporary jobs and 2 000 direct permanent jobs, said Cruz, adding that indirect job opportunities would be created through its partnerships with other companies.
The Mozambique State-owned oil company Petroleos de Moçambique would also own a stake in the project.
The project would also include a 500-MW gas-fired power station, a chemical plant, a waste disposal plant, an effluent disposal plant, a tank farm, a handling terminal and accommodation for staff.
Cruz explained that the power plant would be constructed to supply the refinery with its electricity requirements, with the surplus of about 400 MW of electricity to be sold to the Mozambican and South African governments’ national power grids.
In addition, he said that the company had decided to construct the chemical plant, which would produce materials to be used in the production of plastics, as there was a big demand for these materials in the region.
US firm Ayr Logistics was also planning to build a $5-billion 300 000-bbl/d oil refinery at Nacala-a-Velha, in Nampula province, in Mozambique. The refinery was expected to start producing refined fuels by 2015.
REPORTER: Cristina Gallardo.
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