Mozambique: New refinery in southern Mozambique costs US$6.7 billion

4 November 2008

Maputo, Mozambique, 4 Nov – The district of Matutuíne, southern Mozambique, may be the location chosen for construction of a new oil refinery, with the capacity to process 350,000 barrels of oil per day, shareholder and chief executive of OilMoz Holding, Fausto Cruz said in Maputo Monday.

Cruz said that construction of the refinery, valued at US$6.7 billion and which is now the subject of a feasibility study, was the result of a partnership between Shell and OilMoz.

OilMoz’s shareholders are Fausto Cruz and Leonardo Simão, former Mozambican foreign minister and chief executive of the Joaquim Chissano Foundation.

The Joaquim Chissano foundation, which has no stake in the project, will be responsible for the project’s social responsibility aspects, by carrying out community support initiatives in the Matutuíne district, where the refinery will be built, as well as training staff recruited for the project.

The feasibility studies for the project will be carried out by multinational consulting firm PricewaterhouseCoopers and by Mozambican oil company Petróleos de Moçambique (Petromoc).

Construction of the refinery will begin in 2009 and end in 2013 and the project also includes construction of a petrochemical derivatives plant, a gas-fired power plant, a waste treatment plant, a fuel storage facility and a potential offshore port terminal to transport crude oil.

In 2007, Ayr-Petro-Nacala, a subsidiary of US company Ayr Logistics also announced it planned to build an oil refinery in the port city of Nacala, in the northern Mozambican province of Nampula, in northern Mozambique. (macauhub)