InterviewNeste Oil on track to start up Bahrain base oils unit - CEO

08 March 2011 08:23  [Source: ICIS news]

SINGAPORE (ICIS)--Neste Oil’s joint venture base oils facility in Bahrain is still expected to come on stream sometime in the second half of the year despite ongoing political protests in the Middle Eastern country, the company’s CEO said on Tuesday.

The 400,000 tonne/year group III base oils unit is a joint venture between Neste Oil and Bahrain Petroleum Co (Bapco).

“Work on the plant is going very well. There was a minor two-day disruption when the demonstrations broke out [in Bahrain] but work continued on after that,” company president and CEO Matti Lievonen told ICIS.

The plant is under construction within Bapco’s existing refinery in Bahrain.

“Production is expected to start in the third or fourth quarter,” said Lievonen, who is in Singapore for the inauguration ceremony of Neste’s new 800,000 tonne/year renewable diesel plant.

Neste Oil has a 45% stake in a joint venture base oils project in Bahrain, said Lievonen.

“The project is on schedule and on budget,” he said.

Neste Oil’s share of the investment cost is €130m, according to Lievonen.

The base oils plant will be operated by Bapco, while Neste Oil will be in charge of marketing the plant’s output, based on an earlier statement of the company.

Neste currently produces 250,000 tonne/year of group III base oils in Porvoo, Finland, and produces 60,000 tonne/year of poly alpha olefins (PAOs), also known in the industry as group IV base oils, in Belgium.

By: Nurluqman Suratman

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