http://www.thedailystar.net/story.ph... $7b Saudi-Bangla oil refinery likely in 40 months Deal on largest-ever FDI in private sector inked Star Business Report The country's second crude oil refinery company is likely to come into operation in a span of 40 months as a US$7billion joint venture deal between a Bangladeshi company and a Saudi big investment company was signed yesterday. The people close to the country's investment scenario believe it to be the single largest-ever foreign direct investment (FDI) in the first-ever crude oil refine industry in the private sector. Eastern Refinery, a state-owned enterprise, is the present such lone unit to manufacture petroleum products. Managing Director of the Cosmopolitan Group of Companies Nur-Nabi Bhuiyan and Chairman of Hitech International Group Dr Yasin S. Indekeri signed the agreement on behalf of their respective sides at a ceremony in Dhaka. The new venture, which is a petrochemical complex, will be a cent percent export-oriented one having a capacity of refining 300,000 barrels a day and 5.1 million tonnes a year, a quantity that is three times higher than that produced by Eastern Refinery Limited. The state-run company refines crude oil for the local market. Before the signing of the deal, Dewan Sultan Ahmed, chairman of Cosmopolitan Oil Refinery Management Limited, a concern of the Cosmopolitan Group, and also a former vice president of FBCCI (Federation of Bangladesh Chambers of Commerce and Industry), said, “The Saudi company's initial investment will be $3billion, which is to be elevated to an amount of $7billion.” The Bangladeshi sponsor company's top official has expressed his hope that the new plant will go into operation in 3 and quarter years. Both the companies have already submitted Expression of Intent (EoI) letter to the Board of Investment (BoI) to implement the project, Dewan further said. Echoing Dewan's hope, the Saudi group chairman Dr Indekeri said, “ The refinery will go into production within 36 to 40 months.” BoI Executive Chairman Kamaluddin Ahmed and FBCCI's former president Yousuf Abdullah Haroon were present among others at the epoch-making signing ceremony. Pointing to the fact that there is no equity partner either from the government side or local private company for the refinery plant, Dewan said,“Hitech International will provide $3billion as 100 percent equity of the proposed project. Cosmopolitan Oil Refinery Management Limited of Bangladesh will be Hitech's joint venture partner and will endeavour and perform all local required activities and services.” He said the project will need 500 hectares of land in the coastal belt for the convenient entry of vessels with crude oil from Saudi Arabia. Dewan said more than 1000 skilled and semi-skilled workers would be employed in the state-of-the art technology run refinery. Natural gas will be used as energy for running the plant, he said, adding that the Saudi company has already sought gas at a concession rate for more than 25 years. Hailing the signing of the deal, Yousuf Abdullah Haroon said it is the right time to invest in oil refinery in Bangladesh. “We need energy security, so setting up of such oil refinery plant will contribute to forging future energy security”.