Qalaa Holdings Looks to Increase Shares in ERC

Qalaa Holdings is in negotiations to increase its shareholdings in the Egyptian Refining Company (ERC), Qalaa managing director, Hisham El Khazindar, told Al Borsa.

Qalaa Holdings currently owns 16.2% of the company’s shares, and hopes that it can acquire a larger stake by increasing its level of capital investment.

The move is part of a wider investment drive as the company looks to expand its holdings in companies operating in a number of sectors such as ERC, Taqa Arabia and Tawazon.

The ERC is a joint venture between the state-owned Egyptian General Petroleum Corporation (EGPC) and the Arab Refining Company (ARC) – a company owned by a consortium of private investors including Qalaa Holdings. EGPC holds a 30.8% stake in the ERC while the ARC owns the rest.

The ERC is currently finishing the construction of $4.2 billion refinery capable of producing 4.7 million tons of petroleum products each year.  This will include 2.3 million tons of European-standard diesel, and 600,000 tons of mazut-based jet fuel.

ERC Managing Director Mohamed Saad said in March 2018 that the refinery would start test operations in September 2018 with a view to beging operating at full capacity by the end of 2018 or early 2019.

Egypt Oil & Gas Contribution Time: 05-Sep-2018 13:39 (GMT)
Egypt Oil & Gas Last Update Time: 05-Sep-2018 13:39 (GMT)