13 December 2007 08:24 [Source: ICIS news]
MUMBAI (ICIS news)--The Indian and Egyptian governments are in talks for Indian Oil Corp (IOC) to set up a mega-refinery-cum-petrochemical complex in the North African nation, a company source said on Thursday.
"The talks are in a very nascent stage. The details are still being worked out," the source told ICIS news.
For a 15m tonne/year refinery and associated petrochemical project, an investment of around $9bn (€6.1bn)-$10bn would be required, he said, adding that capacities, funding required, technology and other plans have still not been frozen.
"Investing in Egypt is a good proposition. However, IOC also has to work out issues like logistics, whether and where we would be exporting our manufacture to, and the return on investment," the source said.
A viability study for such a project would take at least six months to complete, he added.
"IOC is exploring international opportunities, and this is definitely one of them," the source said.
According to media reports, Egypt General Petroleum Corp (EGPC) and IOC are likely to jointly build a $9bn refinery and petrochemical complex, for which a detailed commercial viability report is expected to be ready by mid-2010.
The Economic Times reported earlier this week that the complex would be built near Garmasa or Port Said in Egypt.
($1 = €0.68)
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