Poject_ Base oil refinery

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                                BANIAS / SYRIA

     1-Project: Base Oil & By-products Refinery.

     2-Company: Company is Syrialube Co.

       3-Company concern: Syrialube is 100% private concern. It was established
for the aim to execute and own the base oil project in Banias. Syrialube was awarded
a license to build a base oil refinery specifically to produce base oil of different grades
and other by-products of equivalent significance to the industrial sector in Syria and
the region. This license was issued in favor of Syrialube from the Syrian highest
council of investment, under the presidency of the prime minister. This license is
certified and signed by the present Prime Minister and it is issued under Investment
Law n˚10.

      4-Location: Facility is arranged by Syrialube Co. to build its base oil refinery
on 75000sqm adjacent to the existing refinery in Banias area that is on the Syrian
coast. There are two refineries in Syria; one is in Homs area and the other one is in
Banias. Both refineries are operating on light and heavy crude but producing only
light products from the atmospheric distillation tower and the residue is introduced to
the vacuum distillation tower to produce gas oil and low quality asphalt.The
government has already taken the decision to revamp the two refineries and mainly to
revamp the Banias refinery .

      5-Feedstock: A connection of pipes will provide feedstock from the existing
Public refinery in Banias. The feedstock provided is Atmospheric residue that is the
residue obtained after the distillation of lighter products in the atmospheric distillation
tower. Syrialube will receive 750000MT/Y of Syrian light atmospheric residue
Priced according to Plats Dubai with a ce rtain discount .Analysis was performe d
and results came to be positive in terms of illustrating the commercial and
technical viability of the above mentioned feedstock and its products

     6-Terminal:The use of the existing terminal of Banias Refinery(on the
Mediteranean Sea) is authorized to Syrialube from the Syrian government for export
and import requirements, thus opening a wide door for export to all the region.
     7-Products: According to initial studies and to license, Syrialube refinery will
produce the following products:

           -Base oil of different grades
           -White oils for different uses
           -Wax of different grades
           -Gas oil
           -Asphalt of high quality
           -Aromatics and naphtanics

      8-Product marketing: The main product will be Base oil which is the raw
material used by blending plants to produce different kinds of finished lubricating oils
which are used in vehicles, marine and all types of engines in addition to that all oils
used in all industrial sectors.

  The government does not allow imports of finished lube o ils to Syria; this is why
base oil of different grades is currently imported in order to satisfy the needs of the
existing blending plants with their feedstock needs mainly SN 300,SN 150 and
SN 500 and bright stock.

  The Syrian government has its own blending plant(Homs Blending Plant), where it
manufactures lube oils needed to public sector mainly the military and private sector
use. Also there are Private Sector blending plants. These plants existed recently, these
are Mobil, Castrol, Fox, Petromin and other s mall plants that satisfy the needs of
private vehicles and industries. The capacity of each of these blending plants ranges
between 15000 to 35000 MT/Y.

The estimated imports of base oil of different grades are around 240,000 MT/Y and in
light of estimated increase of future demands quantity and quality.
   Syrialube will produce 300 000 MT/Y of base oil of different grades out of which
50-60% would be sold in the local market to supply present and estimated future
demands of both Public & Private Sector Blending Plants .All products would be
sold according to international prices.

    All imports of base oil& other by-products will not be permitted because it is
considered as raw material to other industries and the law is clear that once a raw
material is produced in Syria, imports will be stopped, Of course this might eventually
change with the trend of globalization and Gat wave coming to the area and the
Syrian EU partnership agreement ,but this will not illuminate the factor of shipping
costs to Syria which will give always Syrialube an advantage over other producers in
the region, due to the high tariffs & costs of handling of large shipments and big
financial costs.
  Wax products are currently imported to Syria to satisfy the needs of different
industrial sectors, taking in consideration that the two refineries do not produce any
wax quantities of any type or Grade.

   In addition to the above Syria is an agricultural and industrial country and requires
a lot of white oils(currently there is no production in Syria and all quantities are
imported),along with these products the refinery will produce large quantities of high
quality asphalt which is demanded a lot in Syria & Regionally and has good prices.

   9-Technology License: Syrialube intends to build its project using the latest
technologies(state of art) in the domain in order to be able to produce competitive
qualities and quantities locally and regionally and thus taking in consideration present
and future demands and for this aim many licensors have been approached such as
ExxonMobil, ChevronTexaco ,Shell and Axens(part of the French petroleum institute)
and discussions are made with many feasibility study houses with extensive and wide
experience in the domain such as FosterWheeler EU and Technoexport (Czech
Republic) .

  10-Estimated cost: Different technologies could be adopted to produce base oil and
the other by-products. These technologies have its different advantages and
disadvantages thus different cost estimations. According to our studies the cost of this
refinery will be in the range of 250- 300 millions USD.
  Refinery units needed:

                -Vacuum distillation unit
                -Propane deasphalting unit
                -Solvent Extraction unit
                -Solvent dewaxing units
                -Hydro treating units

  Syrialube refinery should take in consideration both current and future needs of the
Syrian market and export markets requirements( specifically rapid changes in the oil
specs put by car manufactures).

Since Syrialube’s Base Oil Refinery will be taking its feedstock quantities directly
form the adjacent Public sector Refinery(Banias Refinery) & Since the Syrian
government will purchase its needs from Syrialube’s products(specially Base Oil) at
international prices( there will be a debit –credit account between Syrialube and the
Oil Ministry)& Since its more feasible to private blending plants in Syria to purchase
their demands of Base Oil and the other by-products in Small quantities on regular
basis (due to payment facilities, shipping costs and big amounts storage


Due to the strategic location of Syrialube’s Refinery in consideration to location,
shipping fees & agreements ( ex:custom tariffs are cancelled between Lebanon and
Syria) surplus of all products could be exported competitively to supply the demands
of blending plants &other industries in Lebanon, Cyprus, Turkey, Jordan,Iraq and
the United Arab Emirates along with some African &European countries.

This project has major significance on the Syrian economy since it will increase
the added value of the Syrian Oil and will provide a wide number of job
opportunities to locals on different levels of social and educational backgrounds.

   Our belief is that low labor&over head costs in addition to all the above
mentioned factors play a major role in building up the feasibility of our project
stressing its competitiveness in the regional market & strategic economic
importance in Syria and in the Region taking in consideration that one of the
major reasons of the current rise of oil prices is shortage of refining capacity in
the world .

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