AMOC to establish Mazut refining project worth $ 500M

CAIRO – 1 September 2017: Alexandria Mineral Oils Company (AMOC) intends to establish a huge project for Mazut refining of a total investment value of $ 500 million, the company chairman Amr Mostafa said.

Egypt's Ministry of Petroleum has put a plan to get rid of the Mazut by 2021 by refining and transferring it to other products of high value.

Mostafa told Egypt Today on Friday that by 2021 the era of Mazut will be eliminated and Egypt will reach the Zero Mazut era, explaining that the main reason behind that is the preference of the locally-produced natural gas over Mazut.

The company's output of Mazut reaches around one million tons yearly and is being consumed in the local market, Mostafa noted, highlighting that the project is still in its preliminary phases of study.

Amoc was established in 1997 and is listed on the Egyptian Exchange (EGX). It produces around 30,000 tons of gas cylinders, 450,000 tons of diesel oil and 84,000 tons of naphtha yearly.

The EGX-listed firm

exported 65,000 tons of fuel oil

in fiscal year 2016/17, with a value of $ 17.5 million (LE 315 million).

AMOC’s total production of oils reached 118,000 tons in the last fiscal year, up from 114,000 tons in FY2015/16, the company said in its annual report.

With regards to butane gas, AMOC produced 31,000 tons in FY2016/17, compared to 28,000 tons in the previous fiscal year.

The company's profits

surged 153 percent year-on-year to LE 1.1 billion, after deducting taxes, in financial year 2016/2017 from LE 435 million.