Updating & Improving Aden Refineries at the Cost of US $300 Million [Archives:2001/49/Business & Economy]

December 3 2001

Aden Refineries has been offered a partial privatization, the government’s total ownership receding to privatize the refinery. Officials have been seeking to implement a modernization of the petroleum refinery, whose productive capacity has amounted to 100 thousand barrels a day, at the cost of US $300 million.
This modernization project will be entrusted to a strategic investor with the government in order to bear the expeditions of the project and rehabilitate the refinery, which have been working for nearly 40 years. The modernization plan includes improving crude oil and processing units, as well as the establishment of gas oil unite and a linking network in order to join different sections of the refinery. The project also includes the establishment of a new electrical station which will produce approximately 30-40 megawatts. The oil company is to initiate the first phase of the project at a cost of US $55 million, financed by the government. Official sources expected that the cost of financing the second phase will be US $250 million, and will be financed by private sectors, both local and foreign. Aden Refinery has raised its capacity of liquefied gas to 1500 metric tons. The project also includes new installations for the gas in the Al-Zait Harbor, which belongs to the refinery and contains dozens of oil tanks at the cost of US $4 million.
It is expected that the liquefied gas’ exports will increase to reach 400 tons per a day.
The refinery was established in Aden in 1952 and began to refine oil in 1954 by the British Petroleum Company in 1977.
Economic statistics show that the amount of imported goods that passed through the Aden harbor from January until September 2001 was 8.44 million tons. Statistics also show that the amount of exported and imported dry goods was 2.7 million tons, and liquefied goods totalled 6.6 million tons. The overall imports to Aden Refinery equalled 3.8 million tons. The sources said that the total oil derivatives during the same period totaled 2,798,740 tons.
Statistics also have pointed out that the number of ships reaching Terminal Container was 1734. These ships have been fully provided fuel totalling 96.4 thousand tons.