August 30, 2008

Saudi to set up USD 3 billion refinery in Bangladesh

Reuters reported that Bangladesh has approved a USD 3 billion investment by Saudi Arabia to set up an oil refinery with a capacity to produce 300,000 barrels of oil products a day. Hi Tech International Group of Saudi Arabia and Cosmopolitan Oil Refinery Management Limited of Bangladesh have signed a deal to implement the project within the next 40 months.

Mr Mohammad Mohsin secretary of Saudi's energy & mineral resources division said that Hi Tech International would produce for the domestic market but may also make products for export. The plant will be set up with foreign investment and will import more than 5 million tonnes of crude oil from Saudi Arabia.

Mr Dewan Sultan Ahmed chairman of Cosmopolitan Oil Refinery Management said that the refinery's production capacity will be more than 3 times that of Bangladesh Eastern Refinery Limited.

Bangladesh imports 3.8 million tonnes of fuel a year, including about 1.5 million tonnes of crude oil.