Syria And Russia To Build A USD 2,7 Billion Oil Complex In Deir El-Zour Province

2005-12-27

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Damascus (SANA-Syrian News Agency)

Minister of Petroleum and Mineral Resources Dr. Ibrahim Haddad and Director General of the Russian Company for Investment Credit Line Pyrev Nizami signed a Memo of Understanding to build an USD 2,7 billion oil complex consisting of an oil refinery and a petrochemical complex in the Syrian province Deir el-Zour.

The Memo states that Credit Line would build the refinery through an adequate company in terms of protecting the environment and provision of raw oil to operate the project by importing it from abroad or from local markets, if available, in current world prices as decided by the Oil Marketing Commission at the Syrian Premiership.

The Russian company will also be committed to build a petrochemical complex with an annual capacity of 1,6 million tons of NAFTA, and finish the project within five years maximum.

The Syrian side will be committed to providing the land for the project as well as carrying out the infrastructure, including waters, electricity, roads and administrative facilities.

The Minister told SANA staff writer following that signing of the Memo that the production capacity of the oil refinery would be at 140,000 bpd, adding that around 2000 workers from different skills and specialties will be needed to do the works at the refinery.

He added that the byproducts of the complex will various, such home gas, polyethylene, polypropylene, gasoline and octane as items very important for chemical industries in Syria. This factory will need at least 1000 workers to be completed, and the surplus could be exported.

The Minister said Syria's share of the profits will be 15 % in the first 10 years, 30 % in the next five years, 45 % in the next five years and 60 % in the next five years. The whole project will be transferred to Syria after 25 years of investment.

Ahmad F. Zahra

Source: IMRA – Independent Media Review and Analysis