Syria, Kuwait to Jointly Build $3 Billion Oil Refinery

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Syrian Oil Minister Sufiyan Al-AW announced this month that in order to double Syria's deep refining capability and to be able to process crude oil from neighboring Iraq, Syria is planning to build a $3 billion refinery with Noor Financial Investment Company of Kuwait. Noor Financial will establish a company to exclusively work on the project in Dayr az Zawr Province in eastern Syria. This was the second new refinery construction project announced by Syria within one week.

Al-AW said that with the two new refineries, Syria would be able to import and export crude oil from Iraq. Iraq's oil exports by way of Syria were stopped in March 2003 after the U.S. entered Iraq. Noor Financial and Syria have decided to sell the stocks of the newly founded company to grassroot investors and Syrian expats.

According to Al-AW, state-owned oil companies from Venezuela, Iran and Syria and a private Malaysian oil company jointly announced plans this month to build an oil refinery near Homs in central Syria. This $2.6 billion refinery will be completed in four years and will treat crude oil from Venezuela, Iran and Syria.

The two new refineries will each provide Syria with daily refining capability of 140,000 barrels, Al-AW said. They will be located at Homs and the port city of Banyas.

Presently, Syria's deep-refining capability is 220,000 barrels a day. Al-AW said the Syrian government has already allocated $1 billion to upgrade the refining facilities at Banyas.

It has also been reported that Syria's government has already implemented the decision to cut down on its diesel subsidy. The annual fuel subsidy handed out by the government amounts to $6.8 billion. It accounts for 65% of the government's annual budget.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.