Brunei, Germany plan new oil refinery<\/p>\n
BANDAR SERI BEGAWAN (Reuter): Brunei's Oil and Gas Agency
\nsigned a letter of intent to build a refinery in Brunei costing
\n2.6 billion marks (US$1.5 billion) with state-owned German
\nengineering company IAB, the company said yesterday.<\/p>\n
The signing was witnessed by German Education, Science and
\nResearch Minister Juergen Ruettgers, who is accompanying German
\nChancellor Helmut Kohl on a two-day official visit to Brunei.<\/p>\n
The head of the board of IAB, Claus Flockenhaus signed the
\naccord with representatives of the Brunei agency.<\/p>\n
IAB said in a statement a feasibility study for the project
\nshould be completed by the end of 1997 and construction would
\ntake four and a half years.<\/p>\n
The refinery will be capable of processing about eight million
\ntons of crude oil and atmospheric residues a year.<\/p>\n
The tiny oil sultanate set in March an oil export target of
\naround 170,000 barrels per day (bpd) at an average price of $18 a
\nbarrel until 2000.<\/p>\n
It currently exports around 96 percent of its oil production,
\nmainly to South East Asia and Japan.<\/p>\n
IAB said it expects $500 million of the cost would go to
\nGerman companies in orders for the project, mostly to companies
\nin east Germany.<\/p>\n
IAB, which specializes in the design and construction of
\npetrochemical complexes, is based in Leipzig in eastern Germany.
\nThe refinery will include a catalytic cracking unit and will
\nproduce mainly gasoline, diesel fuel and kerosene for export,
\nmainly to South East Asia.<\/p>\n
Kohl had talks on Thursday with Sultan Hassanal Bolkiah and
\nthey agreed to strengthen ties between the two countries,
\nRuettgers said in remarks at the signing.<\/p>\n
Ruettgers and Brunei industry minister Pehin Dato Haji Abdul
\nRahman Mohamad Taib also signed a treaty on free flow of capital
\nand secure investments, which paves the way for Germany to
\nprovide export credits for the refinery project.<\/p>",
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