The plant will have an annual capacity of 400,000 tons of VHVI (very high viscosity index) base oil for use in blending top-tier lubricants.
It is expected to be one of the world’s largest VHVI base oil plants when it begins production, which is scheduled for the end of 2011.
Total investment cost of the project is estimated to be between E250 million and E300 million, of which Neste Oil’s share is 45%, same as the company’s ownership in the joint venture (JV). The Oil and Gas Holding Company (OGHC) and Bahrain Petroleum Company (Bapco) will both own 27.5% of the JV. OGHC, which is owned by the government of Bahrain, owns 100% of Bapco.
Feedstock for the new base oil facility will be provided by the hydrocracker unit commissioned in 2007 at Bapco’s Bahrain oil refinery. Neste Oil will be responsible for the sales and marketing of the output of the plant. Bapco will also provide operations, maintenance and management services.
