Page 12 - MEOG Week 03

MEOG ProJeCts & ComPanIes MEOG
Bill passed for two refineries in Syria
syrIa
SyRIA’S government reported last week that President Bashar Assad had signed bills provid- ing for the establishment of two private compa- nies to operate hydrocarbon processing units.
One bill, known as Law No. 28, calls for the formation of a company called Al-Rusafa Refin- ing to build and operate a refinery that will han- dle heavy crude oil.
Another bill, known as Law No. 30, set up Al-Sahel Refining to build and operate a facility that will process gas condensate.
According to information posted on the al-Iqtisadi website, the legislation states that the new entities will manage the Syrian govern- ment’s minority stakes in the two plants.
The Ministry of Oil and Natural Resources will own 15% of each refinery, and the remain- ing equity will be split between Sallizar Shipping SAL of Lebanon, with 5%, and the majority owner Arvada Petroleum, an affiliate of Syria’s Katerji Group, with 80%.
Assad’s signature of the two bills lays the
groundwork for the construction of both facil- ities. Syria’s parliament approved legislation for the two projects last December.
The refinery deals are not the only example of Arvada’s activity in Syria. Last September, the Ministry of Oil and Natural Resources ratified a contract between Arvada and Sallizar Shipping on the expansion and development of the Tar- tous offshore terminal.
Currently, Syria is home to just two refiner- ies, both of them owned by the state. One of the plants lies on the coast, in the city of Baniyas, and the other lies inland, in homs.
The Katerji Group has been involved in oil deliveries to the homs refinery. It has been accused of supplying oil mixed with water as feedstock and then accepting payment for the weight of the shipment, without first reviewing or calibrating the quality of its product.
Since September 2018, the Katerji Group has been included on the list of Syrian companies targeted by the US sanctions regime.™
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w w w. N E W S B A S E . c o m Week 03 22•January•2020