Mozambican Government might cancel Refinery projects.

Mozambican Government might cancel Refinery projects.

“There are rules laid down in law. We have been a littl(2010-08-20) The Mozambican Government might cancel the project to build an oil refinery in the district of Nacala-a-Velha in the northern Nampula province, according to the paper “O Pais”.

Minister Salvador Namburete lamented that no construction work has taken place since the signing of the agreement to build the refinery in October 2007. The minister assumed that this was due to the world financial crisis, which affected the banks that would fund the 5 billion US dollar project.

According to the minister, “what we know and hear from investors is that financing was secured by commercial banks. However, because of the financial crisis, they have had difficulties”.

Namburete said that the decision is imminent because the largest shareholder in the project, Ayr Logistics, has not shown signs of going ahead with the tolerant, because we have been following the international crisis. But the company that signed the accord with the government has not been meeting deadlines”.

The minister stated that the proposed Oilmoz oil refinery near Maputo is also under threat of cancellation. Oilmoz needs to raise 8 billion US dollars for constructing the refinery, which would produce 350,000 barrels of fuel a day.

The threat to cancel the proposed oil refineries coincides with the discovery by the American company Anadarko of oil in the Rovuma basin.