Bangladesh okays $3 bln Saudi Arabia oil investment

DHAKA Sat Apr 12, 2008 12:36pm IST

Related Topics

DHAKA (Reuters) - Bangladesh has approved to go ahead with a $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, a senior official said on Saturday.

Hi-Tech International Group of Saudi Arabia and Cosmopolitan Oil Refinery Management Limited of Bangladesh last February signed a deal to implement the project within the next 40 months, officials said.

Mohammad Mohsin, secretary of government's energy and mineral resources division, told Reuters that the Saudi firm 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.

The refinery's production capacity will be more than three times that of the state-run Bangladesh Eastern Refinery Limited (BERL), the only refinery in the country, Cosmopolitan Oil Refinery Management Chairman Dewan Sultan Ahmed told Reuters.

BERL, at the port city of Chittagong with 1.5 million tonnes capacity, supplies refined oil to three state-owned oil firms for distribution across the country.

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

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage