BY MOHAMMAD SHOEB
DOHA: Qatar Petroleum International (QPI) yesterday announced that it will invest over QR13bn ($3.61bn) to build an oil refinery in Egypt in partnership with Orient Company and the Egyptian General Petroleum Corporation (EGPC).
The announcement came at a joint press conference addressed by the Minister of Energy and Industry, H E Dr Mohammed bin Saleh Al Sada, and Egyptian Minister of Petroleum and Mineral Resources, Osama Kamal. Dr Al Sada, who is also the board Chairman of QPI, said: “This investment would further enhance QPI’s strategy to develop and update the three pillars upon which the company is based, namely exploration, developing and producing oil, petrochemicals, refining and gas and energy amid the company’s vision.”
He added that the investment is part of the objectives of the recent visit of the Emir H H Sheikh Hamad bin Khalifa Al Thani to Egypt and his meeting with Egyptian President Mohammed Mursi. During his visit, the Emir assured Egypt that Qatar will extend its support and cooperation in the development of the Egyptian economy for the pursuit of mutual benefit.
Kamal said that once the proposed refinery in the outskirts of Cairo (Mastard area) is complete, it will annually produce about 4.2 million tonnes (mt) of environment friendly petrol and other petroleum products of international standards, including over 2.3mt of environment-friendly diesel, which will reduce Egypt’s import of diesel by up to 50 percent.
The environment-friendly diesel is expected to improve air quality in the Greater Cairo area and help reduce Egypt’s annual subsidy bill, the ERC said in a statement issued in Cairo of late.
The refinery at Mastard, which is scheduled to start operations in 2016, will contribute about $300m in direct benefits to Egypt and create several thousand jobs which the country desperately needs. Al Sada said that Qatar is ready to extend its further cooperation by investing in other viable projects which both the ministers were expected to discuss in their subsequent meetings through the day behind closed doors.
While his Egyptian counterpart, Osama Kamal, said: “Since Egyptian government encourages investment from GCC countries in general and Qatar in particular; we are looking forward to deepening and strengthening our economic and political ties with Qatar further for mutual interest.”
QPI is a wholly-owned subsidiary of Qatar Petroleum (QP) and has among its goals to search for investment opportunities outside of the State of Qatar in energy-related fields.
