Saudi group signs deal to set up oil refinery in Ctg
Saturday, 9 February 2008
FE Report
Hitech Group of Saudi Arabia and Cosmopolitan Group, a Bangladeshi private company, will sign an agreement to set up a $3.0 billion petroleum oil refinery in Chittagong today (Saturday).
The proposed refinery will be set up at Anowara, south bank of Karnaphuli river once the investment proposal is approved by the Board of Investment (BoI).
The refinery will be able to produce 300,000 barrels of oil a day.
About 5.1 million tonnes of crude will be imported by the plant every year from Saudi Arabia.
"We will be able to export the refined oil to Singapore and other neighbouring countries," Mohiuddin Jahangir, advisor to the Cosmopolitan Group, told the FE.
He also said it will be 100 per cent foreign direct investment proposal and the Cosmopolitan will be the managing partner of the venture.
Currently, Bangladesh has one state-owned oil refinery plant at Patenga situated just opposite to the Cosmopolitan proposed site, and has been facing numerous problems to operate.
The capacity of the proposed refinery will be more than three times of the state-owned Eastern Refinery.
"We have selected the site as the lighter vessels will be able to anchor here and we will need less time for unloading the crude from the mother vessels," Mohiuddin Jahangir added.
The project will be set up in 350 acres of land and directly employ around 1000 local skilled manpower.
"I think only the Bangladeshi workers who will be engaged in the plant will be able to earn around $5.0 million annually ," Mohiuddin added.
The plant will also use most modern fractional distillation and hydrocarbon cracking technology to refine the crude.
The cosmopolitan sources said both the companies are committed to take steps regarding environmental issues and the proposed plant will be eco-friendly.
Hitech Group of Saudi Arabia and Cosmopolitan Group, a Bangladeshi private company, will sign an agreement to set up a $3.0 billion petroleum oil refinery in Chittagong today (Saturday).
The proposed refinery will be set up at Anowara, south bank of Karnaphuli river once the investment proposal is approved by the Board of Investment (BoI).
The refinery will be able to produce 300,000 barrels of oil a day.
About 5.1 million tonnes of crude will be imported by the plant every year from Saudi Arabia.
"We will be able to export the refined oil to Singapore and other neighbouring countries," Mohiuddin Jahangir, advisor to the Cosmopolitan Group, told the FE.
He also said it will be 100 per cent foreign direct investment proposal and the Cosmopolitan will be the managing partner of the venture.
Currently, Bangladesh has one state-owned oil refinery plant at Patenga situated just opposite to the Cosmopolitan proposed site, and has been facing numerous problems to operate.
The capacity of the proposed refinery will be more than three times of the state-owned Eastern Refinery.
"We have selected the site as the lighter vessels will be able to anchor here and we will need less time for unloading the crude from the mother vessels," Mohiuddin Jahangir added.
The project will be set up in 350 acres of land and directly employ around 1000 local skilled manpower.
"I think only the Bangladeshi workers who will be engaged in the plant will be able to earn around $5.0 million annually ," Mohiuddin added.
The plant will also use most modern fractional distillation and hydrocarbon cracking technology to refine the crude.
The cosmopolitan sources said both the companies are committed to take steps regarding environmental issues and the proposed plant will be eco-friendly.