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    Petroleum Refinery sale ''off the table'': BoD Vice Chairman

    February 3, 2021
    oil and gas

    Amman, Feb.2 (Petra) -- Vice Chairman of Board of Directors of the Jordan Petroleum Refinery, Abed Al-Rahim Boucai disregarded as 'off the table' the sale of the company and hasn't been considered at all, as it is a joint-stock company.

    Boucai told the meeting of Lower House's Finance Committee on Tuesday that the company is continuing its business as usual and has an ambitious fourth expansion project to improve products and increase production.

    The meeting, chaired by MP Nimer Sleihat, was held to discuss the two bills of the general budget and government units' budgets for the fiscal year 2021.

    Sleihat lauded the company's national and strategic role in enhancing energy security in the Kingdom, pointing out the importance of supporting the company and overcoming all challenges it faces.

    Boucai, in turn, said the company, in particular the expansion project, faced many challenges during the past years, which affected the project and delayed its completion despite its launch since 2008.

    He touched on the company's relationship with the government in terms of the company's debt to the government, which reached JD340 million, in addition to JD455 million that was paid, in addition to the fine imposed by the government on the refinery under the pretext of violating the diesel specification, explaining that the fine was imposed last October and retroactively from the beginning of 2020, which ranged between JD8 - JD12 million.

    The Company CEO, Abdel Karim Alawin, said the market study and the economic feasibility of the expansion project was completed and basic designs prepared by two American companies were completed, in addition to preparing preliminary detailed design packages by a Spanish company that were selected through international bid and Technip International- Britain's branch was chosen to manage the implementation of the project through an international tender.

    He pointed out that 9 companies and alliances out of 42 have been qualified to submit bids for implementation, as qualified companies have been addressed to submit their bids for implementation, pointing out that the total cost of the phases so far is about $61 million.

    Alawin added that the project will raise the refining capacity from the current operating level from 60,000 barrels to 120,000 barrels per day, noting that the cost of the project is estimated at about $2.64 billion.

    He emphasized that the refinery products conform to the specifications and standards, noting that the largest shareholder in the refinery is citizens by 64 percent and the Social Security Corporation (SSC) by 20 percent, as for the government, its contribution amounts to 2 percent, and that the number of shareholders is about 34,000.


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