An old Mobil refinery for southern India

Vol 3, PW 25 (19 Jan 00) News in Brief

Andhra Pradesh is backing moves to ship an old Mobil refinery from Naples in Italy to the port of Kakinada.

The move follows objections on environmental grounds from neighbouring Tamil Nadu to set the plant up at Karaikal. The project is promoted by Petrodyne & Associates, a Dallas-based company floated by Non Resident Indian (NRI) Shankar Ramani.

Petrowatch learns that Petrodyne has tied up with an unidentified Saudi Arabian investor to set up the 5m tonnes a year (t/y) refinery at a cost of $550m. The project is close to achieving financial closure, with Kvaerner and Mannesman in the race for the EPC contract.

The refinery originally belonged to Mobil, but was bought by a Kuwaiti company and finally shut down in 1995. The promoters have signed a marketing MOU with IOC and are offering equity to Bharat Petroleum and Hindustan Petroleum.