Guinea has approved a US$2 billion plan by British firm Herman Trading to build a 150,000 barrel per day refinery in the West African state, its prime minister said.
The plant will be built in Guinea’s western region of Boffa and will start producing at a reduced rate of between 6,000 and 10,000 bpd from next year before reaching full capacity after five years.
“This is a job-creating project and proves that Guinea has become an investment destination,” Prime Minister Mohammed Said Fofana said late on Friday on state television, Reuters reports.
He said the project by Herman Trading was backed by British, Indian and Guinean investors and added that the total cost of the project would be $2 billion. First production is expected by May 2012.
An official at Herman Trading was not immediately available to comment.
Guinea is the world’s largest bauxite exporter and holds rich minerals reserves, but imports all of its refined fuel and has no domestic oil production.