Studies near end on Ras Issa refinery

04 October 2002

US-based VECO is scheduled to complete by early October a feasibility study for the proposed oil refinery to be set up at Ras Issa on the Red Sea. The estimated $200 million-250 million grassroots project will be the first private refinery in Yemen (MEED 24:5:02).

The refinery will have a nameplate capacity of 30,000 barrels a day (b/d), but there are plans to double the size at a later date. The project will be designed to produce gasoline, liquefied petroleum gas (LPG), mogas, fuel oil and diesel. The facility will also include berths and storage tanks with a capacity of 3 million b/d. The project will take 18-20 months to build.

The proposed refinery will be financed on a 70:30 debt/equity basis. The client is Hoodoil, part of the local Natco.

More refinery work is planned in Yemen. VECO is due to complete by December a feasibility study for the upgrade of the Marib refinery, northeast of Sanaa. The study will be used as a document for financing the expansion, which calls for a doubling of the plant's size to 20,000 b/d. The client is the Oil Ministry (MEED 4:1:02).

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