Future Plans

Future Plans

Regarding the fourth expansion project, the company, in coordination with all project consultants, completed providing the consortium - that has the best offer which consisted of Italian, Chinese and Japanese companies (Tecnimont-Sinopec (GPEC) - Itochu) - with the necessary information to fill out the necessary financing application forms for submission to Export Credit Agencies (ECAs). The Italian company (one of the members of the consortium) requested a significant increase in the price of the submitted offer, in violation of what had been agreed upon and the terms of the bid. After several meetings and communications with the Italian company to try to dissuade them since increasing the price after opening the bids constitutes a violation of the company’s regulations, and in light of the Italian company’s insistence on its position on price increase, they were informed that price increase is not acceptable, and thus this company withdrew from the consortium.

As for the other two members of the consortium, they have expressed their ongoing interest in continuing working to cover the gap resulting from the withdrawal of the Italian company. 33 Accordingly, Jordan Petroleum Refinery Company informed the two members of the consortium of its acceptance to negotiate with them and to set the necessary conditions to be taken them into consideration to continue. It is planned that a face-to-face meeting will be held during March 2024 with the two members of the consortium, in the presence of the company’s advisors, to agree on a mechanism for completing all technical and financial matters to ensure the continuation of the project through the construction stage.

As for Japanese financing, the Japanese Export Credit Agency (NEXI) has obtained approval from the Japanese Ministry of Economy, Trade and Industry to finance the company’s project, while financing through the Japan Bank for International Cooperation (JBIC) is still under evaluation by the Japanese Ministry of Finance.

The work of due diligence consultants (technical, environmental, market,..etc.) will continue immediately after the approval of the new structure of the joint venture and determining the ways to complete the project.

After the company obtained at the beginning of March 2022 all the necessary licenses from the Energy and Minerals Regulatory Commission to continue performing all its various activities, as it obtained a license to practice the activity of refining and storage, licenses to perform all various LPG activities, central distribution of LPG, and a license to perform various lube oil activities, in addition to a permit to build the company's fourth expansion project, the company activated the Jordan Lube Oil Manufacturing Company as of the first of April 2022. The company transferred the licenses granted to it to perform the various lube oil activities of this company on July 27, 2022 after the approval of the Energy and Minerals Regulatory Authority. The company is currently working on developing the activities of this company, diversifying its products, expanding its share in the local market, opening new foreign markets for its products, and reducing their costs to the minimum possible.

The company also activated the Jordan Liquefied Petroleum Gas Manufacturing and Filling Company as of the first of January 2023 and annexed all the various LPG activities (except the LPG production activity) to this company and included the three LPG filling stations (Amman, Irbid and Zarqa) and LPG Cylinders' repair and rehabilitation workshop to this company as operating facilities in it, and the company the licenses granted to it to perform various gas activities and the central distribution activity of liquefied Petroleum Gas to this company on November 2, 2022 after the approval of Energy and Minerals Regulatory Authority, the company is currently working on developing the activities of this company, minimizing its costs and expanding its share in the central distribution market for LPG.

With respect to the financial relationship with the Government, the company is still negotiating with the relevant ministries and Government agencies to agree on the remaining matters related to the financial relationship between the company and the Government and to resolve all remaining obstacles. Especially the payment of the amounts due from the Government after the company concluded during June 2022 with the National Electric Power Company a financial settlement agreement to pay its debt, the interest of late payment and the benefits of the installment process, within a year in equal installments, starting from July 2022. The full amount of the agreement was paid by the National Electric Power Company during the month of June 2023, and negotiations with the Government are still continuing to agree on the value of the commission for LPG activity which reflects a rate of return on investment of (12%) annually in implementation of the Council of Ministers’ Resolution No. (7633) adopted in its session held on April 30, 2018, to pay LPG subsidy amounts and financial relationship balances due from your Government. During the year 2023 the company made clearings between the accounts of the Ministry of Finance and the accounts of the Income and Sales Tax Department and balances due from ministries and government and security agencies in the amount of JD (71,417,857). Noting that the Resolution of the Council of Ministers’ No. (11231) adopted in its session held on April 2, 2023 during May 2023, included the approval of the Jordan Petroleum Refinery Company to borrow an amount equivalent to JD (105) million in US dollars on behalf of the government in exchange for issuing pledges by the Government to pay loan installments and interest due on them, as this amount was credited to the company's accounts.

After the renewal of the petroleum products marketing license for the Jordan Petroleum Products Marketing Company for additional (10) years starting from the beginning of May 2023, the Company continues its development and expansion path by opening and managing new stations namely Al-Karak station / Al-Qasr, Qatraneh station / Ruba al-Amir, Zaid Al-Fawair station/ Ein Al-Basha, Fendi Al-Faouri station, Yazan Megdadi station/ Bayt Idis, Athamneh Station/ Jerash, Al-laith Plaza station, Umm Uthainah station, Ibbin station/ Amer Al-Momani, Al-Qaisi/ At-Tafilah, Malka station/ Mohammad Al-Ali, Benno station/ Sweileh, Bain Al-Darbain station / Sakhrah, Haif station/Al-Nashmi, Yarqa station/ Al-Shenekat, Municipality Lup and Melih station, Al-Sakhir Al-Zaiti station, Al-Mansi station/ Beit Ras, Mahmoud Al-Faouri station/ Baqa'a, Al Al-Bayt University station/ Al-Mafraq, Emdad station/ Dayr as Si'nah, Elena station/ Imad Al-Jamal and The company's site station in Zarqa after rehabilitation during 2023. 34 After passing the international external audit, the company obtained international quality certificates in the management of quality of services and products, occupational health and safety systems and environmental management systems (ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018) and continued to train all employees intensively on the latest quality management systems and occupational health and safety.

The eFWATEERcom electronic payment system service for the company and its subsidiaries has also been activated, smart applications have been activated to provide technical support to customers at their stations, and an accounting system has been implemented that includes customers following up on their accounts through a software application on their mobile phones.

The latest systems have also been applied in protecting facilities against theft and risks in stations classified as high risk, and pre-warning systems for flooding and water detection have been applied in the stations' tanks.

Until the end of 2024, it is planned to open and manage the Abdullah Ghosheh station, Al-Shera’ station, Aswar Bader station, Wadi Araba Development Station, Jareed Al-Adwan station / Jordan Street, Mahmoud Al-Faouri station, Jett station / Ghor Nimrin, Basira station/ At-Tafilah, Jurf Eddarawish station, Al-Sarih station/ Al-Ajlouni, Hamm station/ Sayyaf Al-Youness, Al-Khazaleh station/ Al-Dajaniyya, Al-Shorafat station/ Al-Mafraq, Jawaher station/ Ajloun, and it is expected to complete the Aqaba Store, the Hashemiya Stores, and the Shishani station, and the construction will begin for the Shidiya station, Jordan Street station, Muwaffaq Al-Salti Al-Azraq base station, and the Potash station, in addition to continuing to rehabilitate the old stations including fifteen stations for Royal Jordanian Air Force as well as Public Security Stations.

Also, the television monitoring system will be applied to the domestic transport and distribution fleet tanks through the central control room, in addition to the automation of tank meters and inventory, and proceeding in inventory automation and electronic sales systems in all stations managed and supplied by the company, as well as increasing fast electric charging stations at the company's stations, installing systems to generate electric power using solar panels in selected stations, increasing the oil products transport fleet owned by the company and automating all the company's financial information and reflecting them on screens instantaneously.

The Jordan Lube Oil Manufacturing Company continues its plan to modify its production lines for increasing production, increasing efficiency, and diversification by adding new products that meet the needs of the local market, new lines for filling (209) drums will be added, in addition to upgrading existing operation lines.

The company is studying the possibility of using solar energy to heat base lube oils and improvers in the tanks of the lube oil factory to reduce costs to the minimum possible.

It is planned to purchase modern forklifts and handling equipment for lube oil, and purchase additional cargo vehicles to develop and improve the sales service to gain customer satisfaction.

It should be noted that the company was able to install a system to dissolve the viscosity improver and to operate it during the last quarter of 2023. This will reduce production costs. Moreover, it is planned that this system will be developed to cover the entire needs of the lube oil factory of viscosity plant improver.

It is planned to install two new tanks at the company's site in Zarqa to increase the storage capacity, and it is also planned to construct five tanks, with a storage capacity of approximately (5) thousand metric tons, at the company’s site in Aqaba. The aim is to increase storage capacities in order to reduce rented storage costs and to benefit from fluctuations in lube oil prices.

In order to expand the company's share in the local market, the company will renovate, develop and produce new types of lube oils according to needs of the market and global trends, as the company is currently heading to develop its products by improving performance levels of oils and producing new types such as gasoline engine oil with a performance level (API SP) and diesel engine oils with performance levels (CK4 and CJ4), where the related improvers have been purchased. It is expected to start production during the second quarter of 2024.

 Work is currently proceeding to renew the accreditation of the company's lube oils laboratory (ISO 17025) through the Accreditation Unit at the Jordan Standards and Metrology Organization and the International ILAC Organization. There is a follow up to obtain international accreditations for Jopetrol oils (such as Mercedes-Benz, API and others) to support the marketing campaigns and keeping both the (ISO 9001) certificate and the Jordanian Quality Mark.

As for exports, it is part of the plan of Jordan Lube Oil Manufacturing Company to continue exporting to Palestine, Iraq and Lebanon and expand exports to Chad to include all regions of Chad in addition to neighboring areas such as Cameroon.

As for the Jordan Liquefied Petroleum Gas Manufacturing and Filling Company, after it was activated and began to perform its work as of the first of January 2023, work is currently proceeding to develop and improve the performance of the activities of this company and reduce its costs to the minimum possible. Projects have been awarded to install solar energy systems at the LPG filling stations, and the implementation of these projects has been started during 2023. In order to increase storage capacities and reduce rented storage costs, and achieve additional revenue from leasing some storage company to others, the company awarded a tender to construct storage capacities for liquefied petroleum gas by approximately (10) thousand tons at the company’s site in Zarqa, and construction work for these tanks began in October 2023. The company is also in the process of constructing new storage capacities at its location in Aqaba. Also the company is also currently working on developing and practicing the activity of central distribution process for LPG directly through the company itself or through entering into strategic agreement with others to develop this activity