Offer made to build huge oil processing plant in Ventspils - newspaper
Several well-known foreign companies have made an offer to the Latvian government to construct a huge oil processing plant in Ventspils, the newspaper "Biznes ^amp; Baltija" reports today.
Several well-known foreign companies have made an offer to the Latvian government to construct a huge oil processing plant in Ventspils, the newspaper "Biznes & Baltija" reports today.
According to the newspaper, the project is a huge one not only for Latvia but also on a global scale. Costs of its implementation could reach USD 1 billion or LVL 586 million. Besides, initiators of the project have guaranteed that almost one-third of the order for more than USD 300 million (LVL 176 million) could be offered to Latvian companies.
Construction of the plant is planned to finance with direct investments and credit resources.
The newspaper informs that among the initiators of the project is one of the world's largest investment groups - "Southern Cross*Crus del Sur". The concern "Parsons", leading global manufacturer of oil and gas extraction equipment, is also a part of the consortium which had sent an offer to Prime Minister Einars Repse on March 14. Also among the initiators is one of the leading financial risk management firms - "Willis", and "NBBJ", which deals with architectural design for various industrial branches.
The investors request Repse formulate and hand in proposals on points in the contract, invite the president of "Southern Cross*Crus del Sur" to discuss regulations and sign an initial agreement.
The initiators of the project point out that the new company would deal with producing high quality gasoline, diesel fuel and fuel for planes meant for European, U.S., Baltic and Russian markets. In the first stage, the company could process 125,000 barrels of oil daily, but after launching the second stage of the plant - up to 175,000 barrels a day.
It is planned that raw material could be supplied for the plant through the oil pipe line Polock-Ventspils.
"Biznes & Baltija" points out that Russia could be a rival in construction of the plant. "Rosjneft" Directror Vladimir Bogdanchikov and Leningrad region governor Valeriy Serdyuk have already discussed construction of the plant in Primorsk. USD 1.3 billion (LVL 761.8 million) would be needed to open the plant, and it could process up to 7 million tons of oil annually.
LETA
Copyright © LETA
According to the newspaper, the project is a huge one not only for Latvia but also on a global scale. Costs of its implementation could reach USD 1 billion or LVL 586 million. Besides, initiators of the project have guaranteed that almost one-third of the order for more than USD 300 million (LVL 176 million) could be offered to Latvian companies.
Construction of the plant is planned to finance with direct investments and credit resources.
The newspaper informs that among the initiators of the project is one of the world's largest investment groups - "Southern Cross*Crus del Sur". The concern "Parsons", leading global manufacturer of oil and gas extraction equipment, is also a part of the consortium which had sent an offer to Prime Minister Einars Repse on March 14. Also among the initiators is one of the leading financial risk management firms - "Willis", and "NBBJ", which deals with architectural design for various industrial branches.
The investors request Repse formulate and hand in proposals on points in the contract, invite the president of "Southern Cross*Crus del Sur" to discuss regulations and sign an initial agreement.
The initiators of the project point out that the new company would deal with producing high quality gasoline, diesel fuel and fuel for planes meant for European, U.S., Baltic and Russian markets. In the first stage, the company could process 125,000 barrels of oil daily, but after launching the second stage of the plant - up to 175,000 barrels a day.
It is planned that raw material could be supplied for the plant through the oil pipe line Polock-Ventspils.
"Biznes & Baltija" points out that Russia could be a rival in construction of the plant. "Rosjneft" Directror Vladimir Bogdanchikov and Leningrad region governor Valeriy Serdyuk have already discussed construction of the plant in Primorsk. USD 1.3 billion (LVL 761.8 million) would be needed to open the plant, and it could process up to 7 million tons of oil annually.
LETA
Copyright © LETA
