Feed Packages Received for Expansion of Petrojam

Six of 14 Front End Engineering Design (FEED) packages for the expansion of the Petrojam refinery, have already been received, and are now being reviewed for acceptance, Minister of Energy, Clive Mullings, has disclosed.
Three more are expected by December, with the remaining five FEED packages expected by April 2009, along with the final cost, the Minister informed.
He was responding to questions raised by Opposition Spokesman on Energy, Phillip Paulwell, regarding the timetable for the expansion of the refinery, in the House of Representatives on November 25.
“The milestone being set here for the completion of the Front End Engineering Design is April 2009,” the Minister noted.
He also informed that prequalification for the Detailed Engineering Procurement and Construction Managing Contractor (EPCM), is being done and it is expected that tenders will be invited by January 2009, and recommendation for contract award, made by June.
“The engagement of the Detailed Engineering Procurement and Construction Managing Contractor by this year, depends on the financial close. The start of construction is estimated to be mid-2010 and we expect to start the commissioning by the fourth quarter of 2012,” Mr. Mullings said.
He further informed that the environmental impact assessment is being undertaken, while market studies commenced in October. A specialist legal advisor is being engaged. “The financial advisor is to issue the project information memorandum by January 2009 and by July/August, the financial close,” Mr. Mullings told the House.
The initial FEED activities of a project are performed to determine its feasibility and to develop the initial project cost estimates. It is a broad-encompassing term that includes all engineering design activities for a project.
On arrangements for the procurement of crude oil from Venezuela, in relation to the expansion project, the Minister explained that the design for the upgraded refinery would permit the use of Leona 22 Crude, which is currently being processed by the Petrojam refinery, and accounts for approximately 66 per cent of the crude slate.
“The upgraded refinery will process 100 per cent of Leona 22, which will be procured on essentially the same basis as currently obtains, which is a one year revolving term contract. While the refinery is designed to use Leona 22, other crude oil of similar characteristics can also be processed,” he said.