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).
You might also like...
Rainmaking in the world economy
19 April 2024
Oman receives Madha industrial city tender prices
19 April 2024
Neom seeks to raise funds in $1.3bn sukuk sale
19 April 2024
Saudi firm advances Neutral Zone real estate plans
19 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.