6 November 2012

Mozambique: Contacts Under Way for Building a Refinery

Maputo — The Mozambican government’s Institute for the Management of State Holdings (IGEPE) is in contact with potential investors interested in building an oil refinery in Mozambique.

IGEPE Chairperson Apolinario Panguene told reporters in Monday “We are thinking about a refinery, and there are already contacts with potential investors”.

But he declined to give any details on the grounds that “we are still in negotiations”.

Currently Mozambique is totally dependent on the import of refined fuels, which costs the country about 700 million US dollars a year. A refinery would reduce these costs substantially.

Fiver years ago, the government approved projects for two refineries. An agreement was signed in 2007 to build a refinery in Nacala-a-Velha, in the northern province of Nampula, which would have cost five billion US dollars.

The company Oilmoz proposed a refinery in the southernmost district of Matutuine, which would cost eight billion dollars, and could produce 350,000 barrels of refined fuels a day.

Neither project has gone ahead so far – apparently because the international financial crisis that began in 2008 made banks reluctant to lend the large sums required.

Currently, the price of a barrel of oil (Brent crude) is 109.18 dollars.

Ads by Google

Copyright © 2012 Agencia de Informacao de Mocambique. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.