Future Plans

Future Plans


With regard to the fourth expansion project of the company, and after the company finished evaluating the technical and financing offers submitted by the participating coalitions to implement the fourth expansion project, the company is currently continuing the negotiation stage with the coalition with the best offer, which is a coalition consisting of an Italian, Chinese and Japanese company (Tecnimont-Sinopec Coalition (GPEC) -Itochu) and proceeding with the negotiation process is contingent on the exemptions from taxes and government fees required by the coalition to sign the contract.

Noting that the company is still following up with the concerned government agencies to obtain exemptions from taxes and government fees required by the coalition in order to be able to conclude on project execution contract.

It should be noted that according to the latest market studies conducted by the British company Wood Mackenzie - which previously prepared the market study - it showed an improvement in the prices of oil derivatives. As a result, it was assigned with updating the pricing forecast in the market study, and accordingly the financial model was updated Which led to a significant improvement in the rate of return on investment (IRR) for the project.

As for the environmental and social matters of the project, the New Paths Company (ECO Consult) was addressed to submit a detailed technical and financial offer to work as an environmental and social consultant for the fourth expansion project during the audit phase (Due Diligence) in cooperation with one of the international companies accredited by the financing agencies (ECA) which is specialized in the fields of BAT (Best Available Technique) in order to reduce greenhouse gases and sequester carbon for refineries, noting that the Ministry of Environment has approved the terms of reference for the study of environmental auditing of The company’s facilities and the environmental and social impact assessment of the fourth expansion project in accordance with the environmental classification and licensing system and its amendments No. 69 for year 2022.

With regard to the appointment of a Lead Arranger to manage the ECAs and follow up on the financing matters of the project, the financial advisor for the project, Standard Chartered Bank - whose contract was extended to the end of April 2023 - provided the company with a list of recommended banks and companies MLA (Mandated Lead Arrangers) in addition to providing the company with the required field of work, the terms of reference will be prepared to attract one of these banks and companies.

The company also obtained at the beginning of March 2022 all the necessary licenses from the Energy and Minerals Regulatory Commission, in order to continue its various activities, where the company obtained a license to practice refining and storage activity, a license to practice different liquefied gas activities, central distribution for liquefied gas, and a license to practice the Lube-Oil activity, in addition to a permit to build the fourth expansion project for the refinery.

The company has also activated the Jordan Lube-Oil Manufacturing company as of April 1 2022, and it has annexed the lube-oil factory and the entire activity of Lube-oil to this company, and the company has waived the licenses granted to it to practice the Lube-Oil activity for this company as of July 27, 2022 after the approval of the Energy and Minerals Regulatory commission on it.

The company has also activated the work of the Jordan Liquefied petroleum Gas Manufacturing and Filling Company as of January 1, 2023, and it has annexed the entire liquefied gas activity (with the exception of the gas production activity) to this company and annexed the three liquefied gas filling stations (Amman, Irbid, Al-Zarqa) and a workshop for the repair and rehabilitation of the gas cylinders for this company as operating facilities, and the company has waived the licenses granted to it to practice various gas activities and the central distribution activity of liquefied natural gas to this company on November 2, 2022 after the approval of the Energy and Minerals Regulatory Commission on it.

In terms of the financial relationship with the government, the company is still communicating with the government to agree on the remaining matters related to the financial relationship between them, and to resolve the remaining obstacles, especially the payment of the amounts owed by the government, after the company concluded during the month of June 2022 with the National Electric Power Company a financial settlement agreement to pay off the debt of The National Electric Power Company and the interest for the delayed payments and the interest for the installments within a year over equal installments starting from July 2022, as negotiations are still ongoing with the government to determine the value of the gas activity commission for the years 2019-2020, which reflects the rate of return on investment of 12% annually and it was also agreed with the Ministry of Finance to pay an amount of JD 105 million during the first quarter of the year 2023.

The Jordan Petroleum Products Marketing Company continues the path of development and expansion by opening and managing new stations. In the last quarter of 2022, the Al-Karak/Al-Qasr station was fully modernized, and the construction of the Royal Guard/Royal Court station, Al-Qatraneh/Ruba Al-Amir station, and Zaid Al-Fawair/Ain Al-Basha station were completed. Beit Eids station and Beno station / Sweileh, and it is expected that these stations will enter into service during the first quarter of the year 2023.

 It is planned for the beginning of the year 2023 to open Al-Bayt University station / Mafraq, the Zain Murad al-Zeer station / Ajloun, Al-Sakhr AlZaity station, Aswar Badr station, and the Aqaba warehouses, in addition to continuing to modernize the old stations, including fifteen stations of the Royal Jordanian Air Force.

The implementation of Abdullah Ghosheh Street Station, Jordan Street Station, Al-Shidiyah Station, Al-Sheraa Station / Aqaba, Al-Shishani Station / Sweileh, Al-Hashimiyya warehouses, Al-Hosn Mall, and modernization and reconstruction of the site station will also begin.

 In the last quarter of 2022, the company automated the maintenance requests for all stations supplied by the Jordan Petroleum Products Marketing Company.

It is planned and expected during the first quarter of the year 2023 that the company will obtain international quality certificates in managing the quality of services and products, occupational health and safety systems and environmental management systems with the highest internationally approved standards, and to continue to intensify the training of all employees on the latest occupational health and safety management systems and provide them with all necessary equipment And the application of the latest systems in protecting facilities against theft and risks.

And that the television monitoring system will be applied to the tanks of the transport and home distribution fleet through the central control room, in addition to automating the tanks gages and their inventory, and the EFWATEERCOM electronic payment system service will be activated for companies.

The activation of smart applications will be completed to organize technical support for customers at their stations, in addition to the completion of inventory automation and electronic sales systems in all managed and equipped stations, and supplied from Jordan Petroleum Products Marketing Company (a subsidiary).

Jordan Lube-Oil Manufacturing company continues its plan to modernize its production lines to raise production efficiency in the lube oil factory where a new production line has been purchased to fill one-liter bottles and it is expected to complete its installation and to start its operation during the second quarter of the year 2023 and it is planned to purchase new lines for filling five-liter and twenty-five-liter bottles.

The work of installing radar systems for base oil tanks and mixing tanks in the lube-oil factory has also been completed and the project is in trial operation phase. Also currently a study is being conducted on the possibility of benefiting from electrical energy generated from solar energy in the process of heating base oil and additives in the lube-oil factory. Work is currently underway on upgrading the computerized systems to link work procedures between the various activities of the factory to become electronic.

As part of the cost reduction plan for the lube oil activity, work is currently underway to install a system to dissolve the viscosity index improver, and it is expected that its installation and operation will be completed during the first quarter of the year 2023, in addition to the installation of new tanks to expand the import of lube-oil additives in liquid form in flexible tanks with a volume of twenty cubic meters.

Work is also underway to modernize the infrastructure of the lube oil factory and rehabilitate its floor. It is planned to purchase cranes and modern handling equipment for lube-oil, as well as purchase additional freight cars to improve the service of distributing goods to customers.

The plan also includes continuing to modernize the lube-oil laboratory by purchasing new and modern testing devices in order to raise the level of reliability and qualify it to examine used lube-oil to raise the level of after-sales service, and expand the scope of accreditation obtained by the laboratory (ISO 17025) from the accreditation unit of the Standards and Metrology Institution and the international ILAC organization, the plan also includes the production of new types of lube-oil with higher performance levels, such as gasoline engine oil with a performance level (API SP) and diesel engine oil with a performance level (CK4 and CJ4), where additives have been purchased for their production, and their production is expected to start during the second quarter of 2023.

As for export, it is within the plan of the Jordan Lube-Oil Manufacturing company to expand exports to include Sudan and Yemen and to expand exports to Chad to include all regions of Chad in addition to its neighboring regions such as Cameroon and to continue exporting to Palestine and Iraq.