The CEO of the Jordan Petroleum Refinery Company, Eng. Abdul Karim Al-Alawin, confirmed that the fourth expansion project will enable the refinery to process 120,000 barrels of Arab Light crude oil per day.

And during his participation today, Tuesday, in the session “Investment in the Industrial Sector, Energy, Mining, and Real Estate Development Projects… Opportunities, Challenges, Experiences and Success Stories,” which was held on the sidelines of the Jordanian-Iraqi Business and Finance Forum, he indicated that the project aims to improve the quality of products, in accordance with the latest Jordanian specifications. European vehicles to meet vehicle emission standards (Euro 5/V and Euro 6/VI), as well as enhance energy efficiency and reduce greenhouse gas emissions as required and specified in the Ministry of Environment and IFC guidelines and Equator Principles.

It is noteworthy that the forum is organized by the Iraqi Business Council in Amman under the slogan “Building Bridges for Common Prosperity,” with the participation of government officials, business owners, and companies from both countries.
According to Al-Alaween, the expansion project aims to improve the air quality surrounding the refinery and throughout the Kingdom, and to enhance water management, preservation, treatment and recycling, in addition to switching to using natural gas instead of fuel oil in the burners of refinery furnaces and steam boilers.

He pointed out that the project aims to generate electricity with high efficiency in the power station (Combined cycle), using natural gas, and to generate hydrogen from natural gas instead of “naphtha”, and to cover the Kingdom’s needs of high-quality petroleum products at competitive prices, in addition to improving environmental performance and efficiency. Capacity for existing refining units to be retained after expansion, converting high-sulfur heavy fuel oil into lighter, higher-value products such as diesel, gasoline and jet fuel.

He referred to the economic benefits of the project, which are represented in the works that will be carried out by local contractors, expecting that the peak of direct monthly employment of the workforce during the implementation phase of the project will reach 6,500 job opportunities, and the average monthly direct employment of the workforce will be 5,000 opportunities, in addition to the quantities of materials that will be secured from the local market. .

Al-Alaween reviewed the main stages of the project and the completed works related to the market study to determine the needs, as the update took place last February, in addition to the selection of refining technologies and technology licensees and the preparation of basic engineering design documents by the refining technology licensees.

He pointed out that the engineering design documents carried out by the Spanish company (Tecnicas Reunidas) were prepared, and the economic feasibility study for the project (Bankable Feasibility study) was prepared by the Spanish company (Tecnicas Reunidas), in addition to the selection of project consultants, the financial advisor (SCB Bank) / branch. Dubai, the English international legal consultant (Freshfields), the environmental consultant ECO & WKC, the English insurance consultant AON, and the English project management consultant (Technip).

According to the allowances, investor package documents and tender documents were prepared for the design, supply, implementation and financing (EPCF) of the fourth expansion project for the Petroleum Refinery Company in Zarqa, in addition to the pre-qualification of EPCF consortia and selection of the preferred consortium for the project.

He pointed out that the actions required to reach the financial closure require financial discussions with the preferred coalition regarding tax and customs exemptions, negotiations with investors, and negotiations with export credit agencies (ECAs) in cooperation with the preferred coalition and their advisors for due diligence.

He pointed out that the works include conducting a due diligence examination for all aspects of the project: legal, environmental, technical, insurance, and others, in addition to reaching the financial closure that is expected to be achieved in the last quarter of this year.

And between Al-Alawin, the oil refinery carried out three expansions between 1960 and 1983 to increase the refining capacity to 60,000 barrels per day.

He said that after the petroleum products market in Jordan was opened to competition in 2013, the oil refinery established a subsidiary under the name “Jupetrol” to work as a marketing arm for its products in the local market, while the company “Jupetrol” ranks first in the Jordanian transport fuel market with 30 million barrels per year.

He pointed out that the refinery owns two other subsidiaries that cover liquefied petroleum gas activities with a market volume of 0.5 million tons per year, in addition to the production and marketing of mineral oils.

According to the allowances, the company’s authorized and paid-up capital amounted to 100 million dinars (100 million shares, at a value of one dinar per share), while its net profit after tax last year amounted to 105 million dinars, compared to 52 million for the year 2021.

It is noteworthy that the Petroleum Refinery, a public shareholding company, was established in 1956, and owns the only refinery in Jordan, and started production in 1960 with a modest refining capacity of 7,500 barrels per day.

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