Page 10 - DMEA Week 08 2022

DMEA REFINING DMEA

Aramco keen on Chinese investment

MIDDLE EAST SAUDI Aramco’s President and CEO this week increasing the number of crude outlets dedicated
confirmed that the company is considering to its crude production, Aramco intends to sup-
investments in China amid recent reports that it ply 70% of the facility’s feedstock, taking a 35%
has resumed talks for the development of a refin- stake in the project, with Norinco subsidiary
ery in the country. Huajin holding 36% and the local-government
Speaking during this week’s International owned Sincen the remaining 29%.
Petroleum Technology Conference (IPTC) in The Saudi firm’s participation came to an end
Riyadh, Amin Nasser told local media: “China in 2020 when it slashed capital expenditure in
is an important part of the sector. Definitely, we response to low oil prices and the coronavirus
are looking for more investment in China. And (COVID-19) outbreak, and its stake was trans-
we are currently in discussions with a number of ferred to Huajin, which established a joint ven-
our partners in China.” ture with Sincen late that year.
He did not provide any further information Quoting sources close to the project, Argus
about ongoing conversations, but recent reports Media said that the JV kicked off construction of
cited company officials as saying that Aramco the facility in Q3 2021, with the petrochemical
has resumed talks to build a $10bn refining and units having now been expanded to a planned
petrochemicals complex at Panjin in north-east- 1.65mn tpy of ethylene and 2mn tpy of parax-
ern China’s Liaoning Province. ylene, raising the cost of the project to just under
Originally announced in 2017 as part of $12bn. While the talks may yet have a long way
China’s One Belt, One Road international infra- to go, it appears that Aramco is once again press-
structure initiative, Aramco agreed a deal with ing ahead with its long-held strategy of raising its
China North Industries Group Corp. (Norinco) gross global refining footprint to 8-10mn bpd.
for the development of facilities with a projected Should it assume the 35% stake it handed back
refining capacity of 300,000 bpd alongside 1.5mn to Huajin in 2020 – and complete several other
tonnes per year of ethylene and 1.3mn tpy of planned downstream deals (see table) – the Pan-
paraxylene. jin facility would take Aramco’s gross refining
In line with the company’s strategy of capacity beyond 7.8mn bpd.™

FUELS

Zimbabwe union complains about

fuel retailers’ use of contract labour

AFRICA SAMUEL Hova, the president of the Zimba- complained of poor working conditions. “Apart
bwe Petroleum and Allied Workers Union from this, there is also the challenge of continu-
(ZIPAWU), has complained that too many of the ous placement of workers on contract employ-
country’s fuel sellers have hired contract work- ment, so you will see some of the workers going
ers rather than salaried employees to meet their for five years on contracts,” he was quoted as
staffing needs. In an interview with NewZim- saying by NewZimbabwe.com. “This is uncalled
babwe.com on February 21, Hova asserted that for, and we will definitely fight such injustices in
this staffing strategy benefitted employers with- our sector.”
out helping employees. Fuel companies that hire Hova raised the question of whether similar
contract labour typically do so because they want practices were being used in other sectors of the
to spend less on wages, so they work through economy. “We also call upon the government to
brokerages that charge fees for their placement urgently launch investigations into the matter,”
services, he said. Those fees come out of the he said. “I suspect the illicit practice has even
workers’ take-home pay, he claim. spread beyond the petroleum sector.”
“Most companies in our sector have The ZIPAWU union was established in 2014
resorted to using workers availed through the and now represents workers from several retail
labour-broking companies. The main challenge filling station chains, including Zuva Petroleum,
is that the practice is bleeding workers because Trek, Maps and Glow, as well as the local affiliate
they have to share the spoils of their sweat with of TotalEnergies. It secured an official mandate
these companies,” he said. from the Zimbabwean government in 2020 but
He also contended that contract workers has not been able to take much action since then,
were not being allowed to join unions and were owing to the lockdowns that followed the advent
being dismissed from their jobs if they ever of the coronavirus (COVID-19) pandemic.™

P10 www. NEWSBASE .com Week 08 24•February•2022