tanzan
May 12th, 2010, 07:41 AM
A FOUR-nation consortium will soon start construction a state-of-the-art oil refinery in Dar es Salaam and an oil pipeline from the city to Mwanza and Kigoma. The project will be the largest single investment and the largest and most advanced oil refinery in Sub-Saharan Africa.
According to the President of Noor Oil and Industrial Technology Consortim (NOITC), Ms Minoo Davar, the consortium, involving Tanzanian, Russian, Qatar and German companies, has successfully acquired initial funding of six billion US dollars for the project.
She said that in the current economic environment acquiring a large project funding of approximately 6 billion US dollars "it is clearly a very significant challenge’’.
The oil refinery will have the capacity to produce 200,000 barrels a day, which Ms Davar said will result into a significant drop in oil prices in the country. It will use crude oil from Saudi Arabia, Iraq, Iran and other Middle East countries. The crude oil sources will depend on proximity.
Ms Davar told reporters in Dar es Salaam yesterday that the consortium has secured land at Kisiju in Mkuranga District for the construction of the oil refinery in which 5,000 people are expected to be employed during the construction period while 2,000 job opportunities will be available upon its completion.
Consultants have completed the demarcation of the allocated land at Kisiju where an environmental impact assessment is currently underway.
"We are also progressing to the second and final phase of the land acquisition, " she reported.
Feed stock supply of crude oil for the refinery and other key agreements with design, engineering, technology, plant and equipment suppliers for the refinery and pipeline have been secured with global leaders of oil and gas industries, she said.
The government has a 10 per cent share in the oil refinery and 5 per cent share in the oil pipeline. Once operational, the company will be availed with a 15 year- tax exemption.
Discussions are underway with the Tanzania Petroleum Development Corporation on modalities for the construction of the oil pipeline from the refinery to the two north-western Lake regions.
“We have been very successful in overcoming the adverse global economic conditions and securing funding commitments for the refinery and pipeline projects which will bring considerable long term economic and infrastructure benefits for Tanzania and its neighbours,” Ms Davar observed.
Source-Daily News
According to the President of Noor Oil and Industrial Technology Consortim (NOITC), Ms Minoo Davar, the consortium, involving Tanzanian, Russian, Qatar and German companies, has successfully acquired initial funding of six billion US dollars for the project.
She said that in the current economic environment acquiring a large project funding of approximately 6 billion US dollars "it is clearly a very significant challenge’’.
The oil refinery will have the capacity to produce 200,000 barrels a day, which Ms Davar said will result into a significant drop in oil prices in the country. It will use crude oil from Saudi Arabia, Iraq, Iran and other Middle East countries. The crude oil sources will depend on proximity.
Ms Davar told reporters in Dar es Salaam yesterday that the consortium has secured land at Kisiju in Mkuranga District for the construction of the oil refinery in which 5,000 people are expected to be employed during the construction period while 2,000 job opportunities will be available upon its completion.
Consultants have completed the demarcation of the allocated land at Kisiju where an environmental impact assessment is currently underway.
"We are also progressing to the second and final phase of the land acquisition, " she reported.
Feed stock supply of crude oil for the refinery and other key agreements with design, engineering, technology, plant and equipment suppliers for the refinery and pipeline have been secured with global leaders of oil and gas industries, she said.
The government has a 10 per cent share in the oil refinery and 5 per cent share in the oil pipeline. Once operational, the company will be availed with a 15 year- tax exemption.
Discussions are underway with the Tanzania Petroleum Development Corporation on modalities for the construction of the oil pipeline from the refinery to the two north-western Lake regions.
“We have been very successful in overcoming the adverse global economic conditions and securing funding commitments for the refinery and pipeline projects which will bring considerable long term economic and infrastructure benefits for Tanzania and its neighbours,” Ms Davar observed.
Source-Daily News