CITYVIEW TO ACQUIRE CRUDE OIL REFINERY
FOR INSTALLATION IN WEST AFRICA
Facility capable of refining 50,000 bpsd of crude oil
CityView Corporation Limited (“CityView”) advises that it is in the process of
completing the asset purchase agreement for the acquisition of a crude oil
refinery.
It has been decided that CityView will acquire the oil refinery in its own name,
rather than through Pensador Resources Inc.
The asset purchase agreement for the acquisition of the oil refinery will be for an
aggregate consideration of US$320 million most of which will be debt finance.
Financing of the refinery is being negotiated at present, the details of which will
be announced later.
A dedicated team of professionals experienced with crude oil refining, processing,
logistics and operations as well as civil and electrical engineering, project
development and financing, are currently working on the project.
Current Refinery Status:
The refinery is being refurbished in the USA giving CityView the opportunity to
acquire a refinery in first class condition. The refinery has been constructed so
that it can be transported to site in modular form for a more rapid assembly.
According to our consultants, some minor modifications will be required to allow
the refinery to treat alternative crude oil feedstock originating from West Africa.
ASX / MEDIA RELEASE CityView Corporation
Page 2 of 2
Location of Plant:
The location of the refinery will be on the west coast of Africa and the optimum
site will be advised in due course.
CityView plans to ship the plant to the construction site in December this year
and have it operational by the first quarter of 2010. These dates are dependent
on relevant final governmental approvals and the state of available infrastructure
(e.g. power, water, nearby port) required for operation of the plant.
Production Estimates:
Simulation modelling of the refinery flowsheet has been conducted by expert
consultants. The results of preliminary simulations to date estimate production at
50,000 bpsd when fed with the likely feed stock for the refinery. It is anticipated
that with fine-tuning of the model and the refinery itself, crude rate will exceed
50,000 bpsd. The approximate product breakdown is estimated as follows:
Product Rate
(BPSD)
LPG 1,550
Naphtha 3,784
Mogas 17,370
Kero + Diesel 13,964
Asphalt 4,560
Fuel Oil 8,772
Mark Smyth
Chief Executive Officer
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