1 Nov '10
Government-owned VEB Bank has raised $770.5m from overseas sources to fund the $1.3bn Khabarovsk oil refinery upgrade, the Russian bank said.
Spain’s CESCE has reportedly insured 30% of the amount for 12.5 years; the rest comes from commercial sources.
What those sources are has yet to be specified.
The oil refinery is part of privately owned Alliance Oil Co. VEB bought into the upgrade project with the overall $1.3bn price tag last year.
According to the bank, the upgrade will enable Alliance to boost the depth of oil refining at the factory from today’s 63% to 92%; light petroleum product output from 56% to 72%. Overall production is reportedly expected to increase to 4.5 million tons of oil a year.
Alliance Oil Co. is a subsidiary of Sweden’s West Siberian Resources (WSR).