Neste & BAPCO to Establish Lubricants Plant
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Thursday, 19 June 2008 |
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Finland's Neste Oil Corporation, Bahrain's Oil & Gas Holding
Company (OGHC) and the Bahrain Petroleum Company (Bapco) have decided
to establish a joint venture, Bahrain Base Oil Company to build a
high-quality lubricant base oils plant in Bahrain. The plant will have
an annual capacity of 400,000 tons of VHVI (very high viscosity index)
base oil for use in blending top-tier lubricants.
It will be one of the world's largest VHVI base oil plants when it begins production, scheduled for the end of 2011.
The
total investment cost of the project is estimated between 250 and 300
million euro, of which Neste Oil's share is 45 per cent, the same as
its stake in the joint venture. Both Bahrain's Oil and Gas Holding
Company and Bapco own 27.5 per cent of the joint venture. OGHC is owned
by the government of Bahrain and owns 100 per cent of Bapco.
Feedstock
for the new base oil facility will be provided by the hydrocracker unit
commissioned in 2007 at Bapco's Bahrain oil refinery. Neste Oil will be
responsible for the sales and marketing of the output of the joint
venture plant. Bapco will also provide the operations, maintenance and
management services to the joint venture.
PetrolWorld 170608
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