Government plans to construct $3 billion oil refinery

By Benjamin Takpiny

The government revealed on Friday plans to construct a new oil refinery to be built at a cost of 3 billion U.S dollars by Quad Layer Holdings Limited.

Michael Makuei Lueth, Minister of Information, Telecommunication and Postal Services, said that the motivation to build a new refinery stems from the small capacity of the current refinery in Tharjath, Unity State.

“Of course, as you know there is already a refinery there (Tharjath), but that refinery is small, it is not serving that much, so there is a proposal for the construction of a new refinery and that new refinery will be to the sum of 3 billion U.S dollars,” Makuei told journalists after the weekly cabinet meeting in Juba.

He disclosed that the refinery to be built under Private-Public Partnership will see the state-owned Nile Petroleum Corporation Limited (NILEPET) own 30 percent shares  and7 0 percent for Quad Layer Holdings.

“Quad Layer Holdings will be the company to construct the refinery, and after the construction it will continue to produce, and for this refinery to produce, it needs also to be connected by roads, because the current refinery is unable to do anything simply because it lacks roads, even though it’s small, nevertheless, it is not connected by roads, and as such it has not done anything up to now,” said Makuei.

Makuei said that cabinet approved the proposal to construct the new refinery, adding that this will be followed by feasibility studies and then signing of the contract.