Georgia draws up agreements for construction of first oil refinery
BAKU, Azerbaijan, Feb. 18
By Tamilla Mammadova – Trend:
The Georgia's Phasis Oil company has begun to draw up licensing agreements with Royal Dutch Shell and Axen companies on the construction of the first oil refinery, which will be bulit in Kulevi, Khobi Municipality of Georgia, director of the company Gia Shavdia said, Trend reports with reference to Georgian media.
Furthermore, Phasis Oil LLC developed cooperation with Deloitte & Touche consulting company, which will also work on the project.
Phasis Oil CEO added that Spanish Cepsa company (Compañía Española de Petróleos) will manage the enterprise.
"By the end of March, we will sign a memorandum with the Spanish company. At this stage, we are working on its draft," said Shavdia.
According to CEO, after the construction of the first oil refinery in Georgia, the cost of fuel in the country will be reduced by 15-20 percent.
As he noted, the important thing is that the fuel will have the highest quality and the plant will not be tied to the market of any particular country. The plant will produce Euro 5 and Euro 6 standard oil.
The construction of oil refinery in Kulevi is scheduled to be launched in 2021. As reported, 1,500 persons will be employed during the construction, and 70 percent of employees will be local residents.
After the refinery shall be operating at its full capacity, proceeds to the state budget of Georgia will amount to around 50-60 million lari ($17.3-20.8 million) annually.
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