Cairo, 16/2/2022 - The Ministry of Petroleum and Mineral Resources signed contracts to finance the establishment of a mazut production complex through the hydrogen cracking of fuel oil in Assiut with a value of $1474million with six international banks.

The list of banks financing the project includes the Italian CDB Corporation, Credit Agricole for Investment and Finance, UniCredit Italy, HSBC Bank Middle East, BNP Paribas France, and Societe Generale France, with the guarantee of the Italian Export Development Corporation Sacchi.

The alliance of the National Bank of Egypt and the National Bank of Kuwait will play the role of the financial adviser for the project, and Credit Agricole will play the role of the structuring bank and general coordinator of financing, and HSBC will play the role of general agent for the facilities.

Minister of Petroleum and Mineral Resources Tarek El-Molla said that the diesel production complex project in Assiut is one of the most important projects of the ministry’s strategic plan to modernize the refining sector in order to achieve self-sufficiency and adhere to international environmental standards.

The complex works on converting the diesel produced from the refining operations of the ASORC - Assiut Oil Refining Company – which is a low-value product – into petroleum products of high economic value and with international environmental specifications, such as diesel with European specifications (Euro 5) and butane in quantities that achieve self-sufficiency in Upper Egypt.

Al-Molla stressed that the project would have a great benefit in reducing the bill for importing petroleum products, as the value of the products manufactured in the complex, which are currently imported from abroad, amounted to more than $1.5bn annually.

It will also lead to reducing the expenses of logistics, as the product is manufactured in the same geographical scope of the target market.

The project will use the latest tech in the construction of the complex as well as a zero-discharge system for liquids and is characterised by environmental compatibility. It also commits and contributes to developing the local community and opening new horizons for development in Upper Egypt.

The contract for the general contractor for the project was signed during the EGYPS 2020 conference, and the project is slated for completion in the last quarter of 2023.