Tecnicas Reunidas Chosen as Prime Contractor for Residuum Upgrade Project
The evaluation for the Company’s Residuum Upgrading Project for which a special announcement was previously made on March 11th 2008 has reached a conclusion. The Spanish company Technicas Reunidas has been selected and negotiations are underway to complete a contract for the project.
Background
The Project is designed to substantially reduce production volumes of low value black products and increase the volumes of white products, in particular diesel, which is in short supply in the Turkish Market.
Expected raw material and production volumes are given in the table below.
|
Raw Materials
|
Volume Tons*000
|
Finished Products
|
Volume Tons *000
|
|
Atm. Dip
|
1,008
|
LPG
|
203
|
|
Asphalt
|
646
|
Gasoline
|
772
|
|
HS Fuel Oil
|
2,603
|
Diesel
|
2,548
|
|
Total Black
|
4,237
|
Total White
|
3,523
|
|
Natural Gas
|
464
|
Petro-coke
|
807
|
|
MTBE
|
138
|
Sulphur
|
127
|
|
|
|
Total
|
4,457
|
The impact of the project on the environment will be significant. In place of 3500 ppm sulphur fuel oil, 10 ppm diesel and gasoline will be produced.
Even under today’s conditions, the Project would generate at least 400 million USD of extra EBITDA.
The project will be financed primarily through bank loans, with a minority financed by company cashflow.
|
