ANCAP to Open Bids for La Teja Refinery Expansion Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--ANCAP, Uruguay's state-owned oil company, has announced the opening for bids to finance the revamp and expansion project of La Teja refinery in Montevideo, Uruguay. The refinery normally processes 50,000 barrels of light crude per day. ANCAP authorities have said the $800 million project will aim to elevate the plant's processing capacity from 50,000 barrels per day to 60,000 barrels per day, as well as make it able to refine heavy crude oil.

PDVSA, Venezuela's state-owned oil company, holds the most interest in the project. In 2006, the two companies signed a memorandum of understanding to expand the facility. PDVSA and ANCAP, along with their Argentine counterpart, ENARSA, will create a joint venture this month to carry out oil projects. This enterprise will participate not only in the revamp project but also in commercialization of future excess production. The three companies will also explore crude oil from the Marlim oil field (Campos Basin, Brazil) to produce diesel fuel for Uruguay's domestic market and for exports to Argentina.

PDVSA will hold 60% of the shares, and ANCAP and ENARSA will hold 20% each. The project will allow ANCAP to reach self-sufficiency. The project could also include Chile's ENAP. La Teja refiner underwent an emergency turnaround in August 2007 because of a leakage in the topping unit. An unexpected fire in crude distillation burned the wiring system, and the switchboard shorted and affected the rest of the processing units, which had to be shut down. For more details, view related August 29, 2007, article - Unplanned Overhaul at La Teja Refinery in Uruguay.

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