Business Daily from THE HINDU group of publications
Sunday, Jan 07, 2007
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Business Daily from THE HINDU group of publications Sunday, Jan 07, 2007 ePaper |
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Corporate
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New Business Kvaerner bags $6-m deal from Hood Oil of Yemen Rahul Wadke
Stakeholders Hood Oil is building the Ras Issa refinery project at a cost of $600 million Reliance Industries Ltd and International Finance Corporation also hold stakes in the project
Mumbai , Jan. 6 Aker Kvaerner Powergas Pvt Ltd, the Indian subsidiary of Aker Kvaerner Group of Norway, has won a $6-million contract from Hood Oil of Yemen for providing project management consultancy (PMC) for a three-million tonne refinery. Hood Oil, a subsidiary of the Hayel Saeed Anam Group of Yemen, is building the Ras Issa refinery project at a cost of $600 million. Reliance Industries Ltd and International Finance Corporation also hold stakes in the project. The project consists of construction and operation of a 60,000-barrel per day refinery on the Ras Issa peninsula on the Red Sea coast of Yemen. The project is adjacent to the Ras Issa export pipeline, which transports about 50 per cent of crude produced in Yemen. In India, Aker Kvaerner Powergas provides engineering, procurement and construction services for the oil and gas, refining, petrochemicals, metals, minerals, and chemicals sectors.
High-value area
Dr S. Rama Iyer, Executive Chairman, Aker Kvaerner Powergas, told Business Line that the Yemeni contract marked the entry of the company in the high-value area of PMC for oil and gas sector. "This is the first PMC contract to be given to the company, for a grass root refinery. Our role will be in implementation of refinery design and monitoring engineering standards," he said. The project's crude oil procurement is secured by a supply agreement between Hood Oil and Yemen's Ministry of Oil and Minerals, which guarantees the minimum quantity of crude necessary to run the refinery at full capacity. The favourable specifications of Yemeni crude allow for a high yield of commercially valuable fuels. About 74 per cent of the refinery output will consist of LPG, petrol, jet fuel and diesel, as well as benzene and low sulphur waxy residue. Dr Iyer said a team 40 engineers would work on the contract for a period of two years.
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