The facility will produce 500,000 tonnes a year of base oils used for blending top-tier lubricants and is expected to begin operations by 2012.
Feedstock for the base oil facility will be provided from Takreer’s hydrocracker unit.
The joint venture company will be 60 per cent owned by Takreer with Neste and OMV each taking a 20 per cent share.
The front-end engineering and design (FEED) award for the project is expected to be made by the second quarter of 2008.
Takreer will make a final investment decision based on the estimated investment costs obtained during the FEED phase.
Neste recently issued a tender to run a similar lube facility at Bahrain’s Sitra plant as part of a joint venture with Bahrain Petroleum Company (Bapco).
Takreer and Bapco will decide whether to build the Bahrain facility by the middle of 2008 (MEED 4:12:07).