Oil: $1 billion refinery planned for Egypt

Reuters(South Africa) reports that Egyptian, Saudi Arabian and Kuwaiti investors plan to build a refinery in Egypt worth more than $1 billion. The new refinery would have the capacity to process 130,000 barrels per day of oil.

According to an anonymous industry insider, Investment and Securities Group (ISG), a Cairo-based private investment banking firm is the main developer and would take a small stake.

However, the main shareholders would be state owned Egyptian General Petroleum Corporation (EGPC), and un-named investors from Kuwait and Saudi Arabia. An EGPC official confirmed EGPC's 16 percent stake in the refinery project but gave no further details.

It is also reported that a contract to take the output had been agreed upon with Royal Dutch Shell Plc. although Shell in Cairo declined to comment.