Page 23 - DMEA Week 01 2021

DMEA NEWS IN BRIEF DMEA

Bapco refinery expansion Chief Executive Officer (CEO) at Mina 4. The government-owned Petrochemical
Abdullah in a statement to Kuwait News
work set for 2022 Agency (KUNA), on December 30. Industries Company (PIC) will issue the
tender, which is one of 76 contracts the firm
The low-sulfur naphtha is produced
completion according to top international standards, intends to sign in 2021, the Arabic language
she said, indicating that the unit had been
daily Alanba said, citing PIC sources.
Construction work on the Bahrain designed by a pioneering international “PIC intends to issue a tender for the
Petroleum Company (BAPCO)’s oil refinery company, praising the national cadres appointment of a consultant to carry out
expansion project in Sitra has reached who overcame obstacles caused by the feasibility for a new project in Kuwait,” the
60% and is on track for completion by the coronavirus crisis and succeeded in paper said without providing further details.
third quarter of 2022, reported the Gulf operating a number of units in the project. It said the contracts planned in 2021
Daily News, citing the Oil Minister Shaikh The KNPC declared in April operating include new projects, supply of services and
Mohammed bin Khalifa Al Khalifa. all units of the Clean Fuels Project at Al- equipment, and installation of systems and
Ahmadi refinery while pursuing work to equipment at the company’s sites.
make the same accomplishment at Mina Another key tender to be issued is for
$3.4bn project to meet Abdullah refinery. the appointment of a consultant to conduct
a feasibility study for a project to convert
The two refineries are projected to put
fuel needs in Upper Egypt: out 800,000 barrels of high quality fuel a plastic waste into petroleum products, it
day in the foreseeable future.
added.
Petroleum Minister
Minister of Petroleum and Mineral Sipchem unit secures Khor Mor gas plant hits
Resources, Tarek El Molla, has asserted that
the high-octane petrol and diesel production $187mn Murabaha loan deal record new production level
complex in Assiut governorate, with a total
investment of about $3.4bn, will meet fuel Sahara International Petrochemical Dana Gas, the Middle East’s largest
needs of Upper Egypt in the coming period. Company (Sipchem) said that its regional private sector natural gas
The minister’s remarks came during his 75%-owned subsidiary, International company, announces the production of
inspection of the project’s trial operation on Polymers Company (IPC), signed a sales gas from Pearl Petroleum’s Khor Mor
December 31. SAR700mn ($187mn) Murabaha facility Gas Plant in the Kurdistan Region of Iraq
El Molla praised the fruitful cooperation agreement with Riyad Bank to refinance (KRI) reached a new record level of 430mn
between the Ministry and the governorate the existing syndicated bank facility and cubic feet per day on December 15 2020.
in implementing the project despite the the Public Investment Fund’s (PIF) loan. Fourth-quarter average gas production
challenges posed by the novel coronavirus The new facility provides favourable as of December 15 2020 is 400mn cubic
(COVID-19). The Assiut complex was terms and pricing and will convert the feet per day, an 8% increase on Q4 2019’s
executed by the Engineering for Petroleum existing project finance into a Sharia- average production of 370mn cubic feet
and Process Industries Company (Enppi), as compliant facility, according to a bourse per day.
a general contractor, the Petroleum Projects filing on December 27. Pearl Petroleum has also restarted
and Technical Consultations Company The original amount of the syndicated expansion plans in the KRI on December
(Petrojet), and the Assiut National Oil facility is SAR704mn and the PIF loan totals 15. This follows the suspension of work in
Processing Company (ANOPC). SAR704mn. The total outstanding amount March 2020 due to Covid-19 restrictions.
The Minister added, in a statement, that to be refinanced is SAR750.81mn. All parties working on the project are fully
the new project’s production capacity of is IPC will drawdown the full amount of committed to executing the expansion
estimated at about 800,000 tonnes of high- the new facility and the difference between project as quickly and as safely as possible.
octane petrol and about 2.8mn tonnes of the amount to be refinanced and the new The Company expects to complete the first
diesel annually. In addition, the complex will facility will be funded through its internal 250mn cubic feet per day gas processing
produce 400,000 tonnes of naphtha; 100,000 cash sources. train in Q1 2023 and is also examining ways
tonnes of LPG; 300,000 tonnes of coal, and The existing syndicated bank facility will to reduce the schedule further.
66,000 tonnes of sulphur. mature in 2026 while the PIF loan matures In line with the Kurdistan Regional
in 2027. Government (KRG) commitment to review
Moreover, the maturity date of the the outstanding December 2019 to February
Kuwait commissions unit new Murabaha financing is in 2027, the 2020 invoices totalling $30mn, Dana Gas
statement said.
notes Pearl Petroleum’s confirmation of
117 of clean fuels project receipt of a payment plan proposal from the
KRG to pay down past receivables during
Kuwait has commissioned a naphtha Kuwait may set up new 2021 as long as Brent remains above $50 per
treatment unit (No. 117) at Mina Abdullah barrel. Pearl Petroleum continues to engage
refinery as part of the mega Clean Fuels petrochemical project constructively with the KRG on this matter
Project. to ensure timely payment. The KRG has
The operated unit, with an output Kuwait will issue a tender in April for maintained regular monthly payments since
capacity of 23,500 barrels per day, cleanse the appointment of a consultant for a March 2020.
the fuel of minerals, sulfur and nitrogen, feasibility study for a new petrochemical
said Wadha Al-Khatib, KNPC’s Deputy project, a local newspaper said on January

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