A new USD 2 billion refinery in Selangor

A new oil refinery costing USD 2 billion will be built and operational by December 2012, in Pulau Carey, Selangor. The development and shareholders agreement was signed today in Kuala Lumpur.

The joint venture company, China Malaysia Oil Refinery Sdn. Bhd. (CMOR) is a 60:40 partnership between Qingdao Topoil Oil Import and Export Co. Ltd. and a local Malaysian oil and gas company, Global PLB Sdn. Bhd. The paid up company of CMOR is RM 350 million. They managed to source 200,000 barrels per day of crude oil from Venezuela for this project and all products will be exported to China, in anticipation of their growing energy requirements and ahead of any disruptions from the current supply from ‘unfriendly-to-the-US’ countries such as Iran. United States time and again threatened to attack Iran for various diplomatic issues, which mainly is focused on the Iranian uranium enrichment and possible nuclear weapons development programs.

This Bernama.com take on this:

Business


September 19, 2007  

Global PLB Teams Up With China Firm To Invest In Petroleum Refinery

KUALA LUMPUR, Sept 19 (Bernama) —

Investment holding company Global PLB Sdn Bhd and China-based company, Qingdao TopOil Imp & Exp Co Ltd, today signed a shareholders’ agreement to set up a joint venture to build a 200,000-barrel-per-day oil refinery on a 1,500 acres land in Pulau Carey, Selangor.

The joint venture company, China-Malaysia Oil Refinery Sdn Bhd, will have a paid-up capital of RM350 million, where TopOil will hold 60 percent equity and Global PLB 40 percent.

TopOil chief executive officer, Wang Zhi Qiang, said the investment was TopOil’s first venture into Malaysia and the company would arrange the full financing of US$2 billion (RM1=US$3.4) through loans from Bank of China and CITIC Bank of China.

“The amount is expected to be used for the engineering, procurement, construction and commissioning activities in the refinery,” he said.

Asked how much the company expected to gain from the refinery, Global PLB’s president Mohd Omar Ali said: “I cannot say how much but I can say a same size refinery in Melaka is making RM1 billion a year and RM3 million per day. Ours (capacity) is 20,000 barrels (per day) more than Melaka.”

He said the land was sub-leased from Yayasan Selangor for a tenure of 25 to 30 years, with options for extension after that.

Wang said TopOil would seek permission from the central government (of China) to bring in the US$2 billion investment.

“Hopefully within three months, the first batch of investment can come in.

“The end-products will be sold to taken back to China and sold to the market there,” said Wang.

Mohd Omar said after three months the company could start the site clearing.

“When the construction starts forty months after that, we hope to have first drops of refined products to be out from the refinery,” he said.

— BERNAMA

 

This ambitious new high technology project is fully a PFI venture and the Chinese partner will raise the funding for the development and construction of this major oil refinery from firms like Bank of China, CITIC Bank of China and other state owned investments/venture capitalists. The capacity of this new oil refinery is 10% more compared to the Petronas refinery in Tangga Batu, Melaka.

The CMOR is planning to develop 200 local vendors, suppliers and contractors, especially amongst Bumiputra oil and gas related, support services and ICT based firms. About 4,000 jobs will be created when this refinery is operational. A commencement of the refinery has been targeted for 20 December 2011.

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Published in: on September 20, 2007 at 00:37  Comments (2)