Page 10 - Euroil Week 02 2020
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EurOil PROJECTS & COMPANIES EurOil
Greek refiner picks TechnipFMC for new naphtha complex
GREECE
The Corinth refinery is Greece’s largest with a throughput capaity of 185,000 bpd.
GREEK refining firm Motor Oil Hellas (MOH) has handed an engineering, procurement and construction management (EPCM) contract to London-based TechnipFMC for a new naphtha complex at the Corinth oil refinery.
The 22,000 barrel per day (bpd) complex will house naphtha hydrotreatment, platforming and isomerisation units, enabling the refinery to scale up production of Euro-5 gasoline, as well as kerosene and hydrogen. The project also covers upgrades to the plant’s existing utilities.
TechnipFMC earlier undertook front- end engineering design (FEED) work for the complex.
“With this project, TechnipFMC strength- ens its expertise in the delivery of complex pro- jects and its leadership within the European downstream market,” the contractor’s president of onshore and offshore business, Catherine MacGregor, said in a statement on January 9. “The project also illustrates the strong historical relationship between TechnipFMC and Motor Oil Hellas over the past 45 years.”
TechnipFMC did not say exactly how much the deal was worth but described it as “signifi- cant”, indicating a value of between $75mn and $250mn. Construction of the naphtha complex is slated to cost €310mn ($345mn) in total, according to MOH, which approved the project last May.
The Corinth refinery, located some 70km outside Athens, is Greece’s largest, with a throughput capacity of 185,000 bpd. It is also the country’s only oil processing plant in private hands, with state-owned Hellenic Petroleum operating Greece’s other three facilities in Aspro- pyrgos, Elefsina and Thessaloniki.
The naphtha complex is slated to start pro- duction by the end of 2021, according to MOH, which hopes its launch will improve the plant’s margins. MOH recorded a 24% year-on-year drop in third-quarter EBITDA in the third year to €144.2mn ($160mn), because of weak margins. Its performance was also affected by maintenance at its fluid catalytic cracking unit in September.
Romania to re-open $600mn case against KMG refinery
ROMANIA
The refinery is owned by Kazakhstan’s state- run KazMunayGas.
THE Romanian state said it has taken steps to reopen the $600mn case against Kazakh-owned local company Rompetrol Rafinare, the owner of the largest oil refinery in Romania, Petromidia, Adevarul daily reported quoting public officials.
The case was closed by the Directorate for Investigating Organised Crime and Terrorism (DIICOT) last December due to lack of grounds for indictment. The case was related to a historic debt of $600mn that the Petromidia refinery had to repay to the Romanian state, dating back from the refinery’s privatisation in 2000.
The state assets management agency (AAAS) has challenged the closing of the Rompetrol file by DIICOT, according to an answer sent by the institution at the request of the daily.
“The complaint against the prosecutor [who decided to close the file] was filed with the Gen- eral Prosecutor’s Office — DIICOT, the organ- ised crime fighting section,” the sources told Adevarul daily.
DIICOT has already lifted most of the meas- ures imposed against KMG International (the majority shareholder of Rompetrol Rafinare),
Oilfield Exploration Business Solutions and Rompetrol Rafinare, maintaining a distraint on $106mn.
In May 2016, DIICOT put under distraint KMGI’s stake in Rompetrol Rafinare and other assets worth around €600mn.
However, on December 5, DIICOT decided to drop the charges and lift the majority of pre- cautionary measures against Rompetrol Raf- inare and KMGI. The decision was sent to the parties, DIICOT explained when the informa- tion leaked to media.
Under a provision in the privatisation con- tract for the refinery, reportedly purposely placed in favour of the buyer, the private investor converted as much as possible of the debt into shares, in order to get rid of the debt but also maintain the majority stake, and the state cur- rently holds a 44% participation in the refinery. In addition, KMGI promised to contribute the Romanian state’s part in a joint investment fund that is currently building Rompetrol car fuel sta- tions and plans to build a power generation plant at the refinery’s site as well.
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w w w. N E W S B A S E . c o m Week 02 16•January•2020
