India's Reliance Industries (RIL) is due to take a final investment decision by the end of February on the acquisition of an equity stake in the project to build an estimated $450 million grassroots refinery at Ras Issa on the Red Sea. 'We have been offered 30-40 per cent, but this may go up,' RIL's president of international operations, Atul Chanpra, told MEED in early February. 'The capacity of the refinery is also under review.' Initial plans called for a facility with capacity of 60,000 barrels a day. The US' Chicago Bridge & Iron Company (CB&I) carried out the front-end engineering and design (FEED), while the US/Canadian VECO completed the feasibility study (MEED 16:9:05). The next stage in the project's implementation will be the issue of tenders for engineering, procurement and construction (EPC) contracts.
A new project company, called Ras Issa Refining Company, is due to be established between Hoodoil - part of the local Natco and the project's main sponsor - RIL and the International Finance Corporation, the private sector arm of the World Bank. The remainder of the capital will be offered to local and regional investors.The plant's product slate will include gasoline, high-speed diesel, aviation turbine fuel, kerosene, benzene and liquefied petroleum gas (LPG). State-owned Yemen Petroleum Company has guaranteed the offtake. The refinery will have capacity to process Marib Light crude but will also have the in-built flexibility to handle oil from Iran, Kuwait and Saudi Arabia.
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