Egypt - Alexandria Mineral Oils Company (AMOC) has agreed with five international and local entities to finance the company’s oil refinery project at a cost of $500m.

Sources within AMOC told Daily News Egypt that the company negotiated with more than 10 banking and local bodies to obtain funding for the project and agreed with five parties, including the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

Minister of Petroleum and Mineral Resources Tarek El-Molla agreed on the project, according to Amr Mostafa, AMOC chairperson, adding that the studies will be completed next month.

The Ministry of Petroleum has set a plan to eliminate the use of oil fuel by 2021 by refining it and converting it to other high value products, especially in light of the growing rates of domestic natural gas production, which is preferred over oil fuel in many sectors, especially in power plants and the industrial sector.

Mostafa said that by 2021, the era of using oil fuel will end in Egypt, as locally-produced natural gas is preferred over it.

He added that oil fuel is one of the company’s important products, with a production of 1m tonnes per year used in the domestic market.

Founded in 1997, AMOC, which is enlisted on the Egyptian Exchange, produces 30,000 tonnes per year of liquified petroleum gas (LPG), 450,000 tonnes of oil fuel, 84,000 tonnes of naphtha, and some wax for export.

Mostafa said that the company will complete its dual listing procedures on NASDAQ Dubai in early 2019. “We are currently completing the listing requirements and it is expected to be complete later this year,” he confirmed.

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