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China National May Bid for Tatneft New Refinery, Interfax Says

China National Petroleum Corp. may bid to build a refinery, in a tender managed by OAO Tatneft (TATN), Interfax reported, citing Rafinat Yarullin, a general director at OAO Tatneftekhiminvest-holding.

Tatneft and Foster Wheeler Ltd., a U.S. oil and gas services company, will develop the terms for the general contractor and designer tender, which may be announced in January, the news service reported today. Construction will start next year.

Tatneft, the largest oil producer in Russia's Tatarstan region, announced in July 26 plans to build a refinery for at least $1.8 billion, after it failed to agree on the ownership of the OAO Nizhnekamsk Oil Refinery it's been building since 1999. The oil company will cooperate in the new refinery project with Tatarstan-owned OAO Svyazinvestneftekhim, which holds 33.6 percent of Tatneft.

The refining complex will be able to refine 7 million tons of crude a year (140,000 barrels a day), Tatneft said July 26. It will be able to process 3.5 million tons of crude to make high-grade fuel and will also have a petrochemical unit with a capacity of 900,000 tons a year. The project will be completed in 2010, the company said.

(Interfax 12-6)

For the web site, see http://www.interfax.ru

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Tim Coulter at tcoulter@bloomberg.net

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