Project Synopsis

Oilmoz is duly registered and incorporated limited liability private company under the Mozambican commercial Laws that were formed with the mandate to develop and promote a Crude Oil Refinery in Mozambique. The Government of Mozambique, through the Ministry of Energy, has granted Oilmoz with the requisite rights, licenses, permits and consents to undertake the development of a crude oil refinery and petrochemical processing plant in south of Mozambique.

The Refinery will be a Greenfields project and its construction is expected to commence after Financial Close and be completed within 4 to 5 years. The total cost of the Project, which includes the Refinery, together with the entire support infrastructure, is presently estimated at US$12 billion. Oilmoz plans to develop the EURO V 350.000 BPD Crude Oil Refinery, a Petrochemical Plant and, a Industrial Hub.

It’s envisaged that the project will be financed via a BOOT concession or any other funding method to be approved and, the funding, construction and operating partners will begin to be sourced once the feasibility study has been successfully completed. Potential interested parties for both the sponsor and development phases of the Project thus have the opportunity to register their interest at this juncture.

In order to guarantee the best quality of support available and to implement such a mammoth task in the development of Mozambique, the promoters has establish a world class of strategic partners in this endeavour.

A detailed feasibility study covering among other key issues, financial, operational, legal and environmental aspects of the project is now about to re-start "Feb to Mar/2017".

The successful completion of the detailed feasibility study will facilitate the mobilization of financial, technical, operational, construction and other necessary resources required to develop the Project. The Project will constitute the largest investment in Mozambique since independence from Portugal.

The establishment of the Oilmoz Project will help secure the supply of oil and other refined petrochemical products not only to Mozambique but also to a number of countries within the Southern Africa region.

Other envisaged benefits include significant employment creation in the downstream industries to be located in and around the Maputo Province, which is estimated to reach a peak of 15.000 job opportunities during the construction phase and some 2.500 permanent job positions after commissioning. However, it’s expected to have on the ancillary projects and supportive surround industry some 3.000 indirect job opportunities.

The increasingly important Maputo Corridor running from Maputo to South Africa’s largest industrial base in the Gauteng Province will provide a link for the supply of refined petrochemical products into South Africa and the rest of the SADC region.

Up to 85% of the Refinery’s planned output will be available for export to countries within the Southern Africa region and overseas. Most of these countries are wholly dependent on imported refined fuels and petrochemical products to supply their requirements in this regard. Although Angola is a net exporter of crude oil, the country relies almost entirely on imported oil and other refined petrochemical products.

The Refinery will face various risks through its life. These include political, technological, demand and economic risks.

South Africa, a major target market for the planned Refinery, has put forward a number of initiatives aimed at addressing current and projected supply shortfall in refined petrochemical products. Some of the measures include the building of additional refinery capacity through Mafutha and Mthombo Projects. Even if all or some of these initiatives were to materialise, South Africa and the rest of the SADC region would still potentially require the refinery capacity created by the Oilmoz refinery.

The Petrochemical Plant will provide Mozambique and the SADC Region Countries with numerous types of petrochemicals and petrochemical end products. Some have consumer uses and others are mainly for industrial use.

The fact that this industrial hub is to be built in the immediate vicinity of the port that will house the Industrial Hub, it will give them a unique competitive advantage on the exports of the final products that they will be exported.

A very important fact that should be highlighted is that all these industries are to be built within a contained and restricted area of the Industrial Hub, with the view of mitigating the risk of wide spread pollution.

Oilmoz has a Memorandum of Understanding (MOU) with a world leader in technology that minimises environmental impact from these types of production activities. This European company will do a full on-site environmental assessment from FEED (Front End Engineering Design) to full commissioning of all production units. This monitoring shall be on going after commissioning.

There is a comprehensive in-situ training programme of Mozambican Staff that will enable a localised engagement in all environmental deterrent aspects of the project.

 Life in Industrial Towns:

1. The Industrial Revolution witnessed a huge growth in the size of European cities with growth of 60% experienced in just 40 years in some areas. With this growth the demand of housing and associated infrastructure was such that the quality of such housing was one of very low level. These major limitations, expected for that era, and the consequences thereof, were felt for many generations to come.
2. A new industrial revolution, nothing short of the one experienced in the 1800’s, is intended to be effected in Mozambique with the building of the crude oil refinery within a context of an Industrial complex where local content policy will prevail, at no expense of internationally accepted quality.
3. This time, the promoters will apply the latest internationally accepted standards of building, materials and technologies, avoiding the errors and shortfalls of past industrial revolutions.
4. To support the refinery together with its ancillary projects, it is envisaged and required that an Industrial Hub next to a deep sea Port to be built with the full status of Export Processing Zone with special tax incentives.
5. This Industrial Hub will provide the entire required infrastructure to house industries such as the crude oil refinery, petrochemical plant, power generation unit, and water treatment plant, Tank farm for crude and finished refined products, amongst many others.
6. This industrial Hub is expected to support the development of a new city with the most modern amenities and with the capacity to provide living conditions to tens of thousands of people with the quality that is expected from the best designed cities anywhere.
7. Internationally renowned consultants will prepare a full strategic spatial development planning for the area of implementation of the project. Strategic plans will be developed through a multi-sector strategic planning framework that will address opportunities and constraints to development in agriculture, industry, forestry, mining, tourism, conservation, physical and social infrastructure sectors and identify key linkages across these sectors.

 The Strutcture: