Africa Finance Corporation (AFC) has signed a joint development agreement with Brahms subsidiary Brahms Oil Refineries to develop a small refining project in the west African country of Guinea.
As per the terms of the deal, AFC will act as co-developer for constructing and financing the petroleum storage and associated refinery project in Kamsar.
The modular crude oil refinery at Kamsar is about 300km north-west of Conakry and will include 76,000m³ crude oil storage terminal, an 114,200m³ refined products storage terminal, ancillary support transportation infrastructure and 12,000 barrels oil per day modular refinery.
Brahms Oil Refineries CEO Daouda Fall said: “To partner with AFC is a great milestone and brings us one step closer to our goal of reaching financial close in early 2020 and kickstarting construction. We will greatly benefit from AFC’s experience in setting up and financing infrastructure projects.”
Project expected to help Guinea in achieving economic goals
AFC stated that the project will help Guinea to achieve its economic and developmental goals, which were hindered due to lack of any refining capacity.
Once operational, the facility is expected to have capacity to produce equivalent to one third of the country’s need for refined products.
AFC stated that it is considering many projects in the country to create an integrated ecosystem in Guinea.
It has also considered supporting a 33MW solar project port and other mining projects, which are expected to complement its previous investment in Alufer’s Bel Air bauxite mine.
The Kamsar refinery plant will process crude oil to produce diesel, gasoil, kerosene, gasoline and fuel oil.
Brahms Oil Refineries will build, own and operate the refinery through its local subsidiary Guinean Refining Company.
In 2017, Brahms Oil Refineries selected SNC-Lavalin to undertake a front-end engineering design (FEED) conversion to EPC contract for the crude oil refinery in Kamsar, Guinea.
