Boost Output in Next Three Years
Cairo (APD) - Morocco's sole oil refiner Socit Marocaine de l'Industrie du Raffinage (SAMIR) said it expects new investments to exceed $700 million in the next three years, the pan Arab daily, al-Hayat, reported Saturday.
In a new project, SAMIR announced that it plans to construct a $100 million, 250 km gas pipeline linking the Moroccan cities of Sidi Kassem and Wazan. The gas pipeline would deliver gas supplies from Algeria for generating thermal electricity in a new power station to be built in Morocco at the cost of $60 million.
SAMIR previously said it would borrow $600 million from international markets to be used in the modernization and expansion of its Mohammedia refinery. SAMIR requested from Barclays Bank, BNP Paribas and other Moroccan banks to arrange for the loan before the end of the year.
The expansion and modernization plan for the Mohammedia refinery includes equipments, preparations, maintenance and technical engineering. SAMIR has already assigned the work at the refinery to Italian and Turkish companies.
With its investments over the coming years, SAMIR aims to boost its output to 12 million tons by 2008, said al-Hayat. The company's announcement did not specify the margin of its expected capacity increase.
For 2005, SAMIR reported a 135% jump in first-half net profit on higher output and expanded sales. Net profit rose to $37.6 million for the first six months of 2005 as refined volume rose 14%. The company said its strong results were due to increased refined oil volume and the sale of shares in an unspecified subsidiary. [TS]
By Eman Wahby, APD Staff Writer in Cairo
© APD (Arab Press Digest) 2005
