31 May 2007 - 18:54
  • News Code: 106033
Bahrain in Mix for $5bn Refinery

MANAMA -- A $5 billion oil refinery may be built in Bahrain, it was revealed yesterday. The plant would have a capacity of 200,000-250,000 barrels a day.

Kuwaiti Islamic investment firm Adeem Investment Company is planning to raise $2bn to partly finance the refinery, said Dinesh Dhume, senior vice-president of corporate finance.


"We have looked at a number of locations and Bahrain is one of them," he said.


Three other regions being considered are: Middle East-North Africa, East Africa and Asia.


A final decision on where to locate the plant would be taken by the end of September, he added.


US-based Taylor-Dejongh have been appointed advisers to the project.


Adeem is aiming to pay for the project through an energy and natural resources fund, and will contribute up to $250 million of its own money.


The fund would raise a 40 per cent equity portion of the refinery"s $5bn price tag. The rest was to be raised through debt.


Adeem was part of a group that bought luxury British carmaker Aston Martin for £479m ($925mn) in March this year.



News Code 106033

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