|9 August 2011|
ABU DHABI — Al Brooge Securities Company, which acquired 75 per cent stake in a Djibouti oil Refinery, will invest $150 million to more than double its daily output, its chief executive officer Husam Alameri said.
Abu Dhabi-based company did not disclose the price it paid for taking over the recently set up oil refinery.
In an interview with Khaleej Times, the chief executive officer revealed that the acquisition deal has been concluded with investors from the UAE and Saudi Arabia. The new owners, he said will spend $150 million to expand by 150 per cent the refinery’s current capacity of 40,000 bpd of Arabian Light Crude and Arabian Heavy Crude to 100,000 barrles per day.
“The next expansion phase will start in the six months period,” Alameri said.
Asked from where crude will be sourced since Djibouti does not have any oil, Husam said that the negotiations are underway with different sources to get better prices.
The refinery’s five major products including naphtha 35 per cent, gas oil 23 per cent, kerosene 22 per cent, bitumen 18 per cent and LPG two per cent, have market locally as well in Ethiopia and Sudan.
Djibouti is the smallest and poorest African nation, where consumption of oil is less, allowing the refinery to export it to Ethiopia, a bigger and a landlocked country meeting its oil needs.
The new capacity to be installed will not only cater to the growing needs of Ethiopia, but it will be marketed into the bigger African markets such as Kenya and Uganda.
The UAE is the biggest investor in Djibouti which is located in the Horn of Africa. Dubai Ports World which manages the biggest port and the airport, last year built the $300 million Doraleh Container Terminal, boosting the cargo handling capacity to handle the cargoes of Ethiopia. —