Mozambique: Mozambican entrepreneurs to build refinery in Maputo

6 February 2009

Maputo, Mozambique, 06 Feb – Oilmoz will build a refinery in the province of Maputo with a 350 thousand barrels per day production capacity when it is ready in 2013 with an investment of US$8 billion, said the company’s chairman Thursday in Maputo.

Oilmoz, founded by Leonardo Simao, former Mozambique Foreign Affairs Minister, will employ 15 thousand people during the refinery’s construction and 2000 once it is fully operational, added company CEO Fausto Cruz, during a presentation of the project in Maputo.

The refinery will be the first to be built in Mozambique since the only other existing refinery was closed 24 years ago, leaving the country entirely reliant on oil imports.

Fausto Cruz also announced that they were at a fairly advanced stage of negotiations with a banking consortium to arrange funding, and that technical and environmental viability studies for the installation of the refinery were underway.

In addition to the refinery itself, the project also includes the construction of other infrastructures, such as a petrochemical plant, a 500 megawatt thermal power station, a waste treatment plant, a tank farm for the storage of crude oil and refined fuels, an off shore dock terminal and staff housing.

Shell Global Solutions will be responsible for technical consultation, the economic viability study and the conception of the project and then later for the supply of crude oil. It will remain a technical partner for a period of 30-40 years, according to Robert Trout, company director for external services.

The project is entirely funded by Mozambican capital, with Petromoc, Leonardo Simao, who is also executive director of the Joaquim Chissano Foundation, the ex-President of Mozambique and Fausto Cruz as shareholders.

Last year, Ayr-Petro-Nacala, of North American group Ayr Logistics, also announced the construction of a refinery in the port city of Nacala in the province of Nampula, in the north of Mozambique. (macauhub)

MACAUHUB FRENCH