Page 12 - AfrOil Week 19 2020

AfrOil PROJECTS & COMPANIES AfrOil
Egypt’s SIDPEC to move forward with $1.2bn polymer project
EGYPT
EGYPT’S Sidi Kerir Petrochemicals (SIDPEC) plans to push ahead with the development of a $1.2bn propylene and polypropylene project, despite the market uncertainty, Zawya reported on April 30.
The company took the decision to go ahead with the plan at its ordinary general meeting, the news agency reported. Management has already selected the US’ Honeywell UOP and Grace as technology providers for the project. But no updates have been announced regarding the choice of a main contractor.
SIDPEC held a tender for the engineering procurement and construction (EPC) contract last year. NewsBase understands that bids were prepared by South Korea’s Samsung Engineer- ing, Italy’s Saipem and Chinese firms Huan- qiu Contracting & Engineering (HQC) and China Petroleum Engineering & Construction (CPECC). However, no contract was awarded and another contest took place this year.
The project’s equity portion – reportedly 30% – is expected to be funded with a capi- tal increase, according to regional brokerage Naeem Research. The remaining 70% will be raised through debt. Egypt’s NI Capital has already been appointed as the financial advisor.
SIDPEC launched feasibility studies for the project in 2018, initially aiming to start produc- tion in 2020. The new plant is expected to pro- duce 500,000 tonnes per year of propylene and
450,000 tpy of polypropylene.
That year SIDPEC, Egypt’s largest petro-
chemicals producer, also signed the licence contracts with Honeywell and Grace, as well as a deal with Egyptian Natural Gas Co. (GASCO) for the supply of feedstock. It went on to acquire a land plot for the plant last year.
Egypt wants to expand several new petro- chemicals projects, exploiting its resources to help meet growing domestic demand for plas- tics, polyesters and other key goods. The gov- ernment also wants to develop some products that can be exported.
SIDPEC is state-controlled, although some of its shares were listed in Cairo in 2005.™
The firm already produces polyethylene and other petrochemicals (Photo: SIDPEC)
PetroNor, Senegal suspend dispute over two offshore blocks
SENEGAL
OSLO-LISTED PetroNor and the government of Senegal have agreed to suspend arbitration of a dispute concerning two offshore blocks, Sene- gal Offshore Sud Profond (SOSP) and Rufisque Offshore Profond (ROP).
PetroNor reported last week that it had struck a deal with Dakar on a six-month sus- pension of the arbitration case. The parties have submitted a formal request to this effect to the International Centre for Settlement of Invest- ment Disputes (ICSID), it said.
The company went on to say that it hoped this development would help the two sides settle
the dispute over SOSP and ROP. PetroNor and the Senegalese government had made progress towards a resolution during the run-up to the decision to suspend arbitration, it stated.
“This is a positive development that matches PetroNor’s strategy adopted since the merger
with African Petroleum Corp. to seek an amica-
ble solution in The Gambia and Senegal, refocus
our resources and create value for the share- holders,” said Eyas Alhomouz, the company’s chairman. “It further highlights a willingness
of all parties to discuss reasonable settlement solutions.” 
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w w w . N E W S B A S E . c o m Week 19 13•May•2020