Saudi Bin Laden Group to invest in expansion of naphtha output in Senegal

01-Nov-11

Petroleum, Chemicals and Mining Co (PCMC)., a unit of Saudi Bin Laden Group, plans with partners to invest US$1.2 bln (Dh4.4 bln) to expand a 30,000 bpd refinery in Senegal to export naphtha to the US and Brazil, as per Bloomberg. PCMC will increase its 34% stake in the Societe Africaine Raffinage refinery to 51% after the plant's expansion. The facility will be able to process 3 million tpa of naphtha and other products, more than double its current capacity of 1.2 mln tpa. PCMC is seeking bank financing for the expansion and will start approaching lenders this year to raise 85% of the money needed for the project's first phase, to cost $540 million. The company may sell Islamic bonds to raise funds and is in talks with Jeddah-based Islamic Development Bank. PCMC expects to close the financing by the end of next year.