May/June 2010

Deal made for largest oil refinery in Africa, Asia

Egypt's government has signed an agreement with two Chinese companies to build and operate a $2 billion refinery in the North African nation.

The refinery will have a production capacity of 15 million tons per year in its first stage, with schedules to increase its capacity in the second stage, according to All Headline News. It will be the largest oil refinery in Africa and Asia.

In May, the signing ceremony was attended by Egyptian Oil Minister Sameh Fahmi and Egypt's Ambassador to China, Ahmed Rezq. The agreement was made by Rong Chang, a leading Chinese petrochemical company, and another Chinese government-owned corporation working in the field of petroleum engineering.

The manufacturing of a maritime oil rig will be included to the Egyptian oil potentials Fahmi said, adding the total investment cost of the driller is $270 million.

The Chinese firms will likely add 2.84 million barrels per day of new refining capacity between 2010 and 2015. They will work the refinery for 25 years and then gradually transfer ownership to Egypt.