Egypt in talks with IndianOil for $9 bn refinery
Mumbai   12-Dec-2007
Egypt is in talks with India's top state-run refiner IndianOil to jointly build a $9 billion refinery and petrochemical complex in the North African nation, its Oil Minister told Reuters on Tuesday. 1 'We are in talks with IndianOil to build a refinery and a mega petrochemical complex," Sameh Fahmi said. ; "We've already asked them to cooperate with the Egyptian General Petroleum Corp to prepare a report on the project," he told Reuters by telephone from China. "The estimated value .of the project is $9 billion, the minister said. IndianOil's business development director, B. M. Bansal, said oh Monday that the demand/supply situation and investment were yet to be worked out' A detailed report on- the commercial viability of the project would only be ready by mid-2010, based on which the Indian firm will decide on an investment, Bansal said. A senior Egyptian oil ministry official said .that EGPC is expected to form the initial joint venture with IndianOil in the first quarter of 2008. "The final decision is likely to be reached before die end of next year...the two sides are very keen on going ahead with a project, but issues like finance and location usually take time," the official said. Meanwhile it was reported that IndianOil and EGPC would build the refinery and petrochemicals complex near Gamasa or Port Said.Mukesh Rohatgi, chairman of state-run Engineers India Ltd said mat die firm hopes to conduct a feasibility study for the project, which will produce an estimated 180,000-300,000 barrel per day.