Future Plans

Future Plans

Regarding the fourth expansion project, three offers were received from three joint ventures for the project phase of EPCF on November 27, 2021. The project management contractor (PMC) Technip Company-UK Branch is currently studying the technical offers packages, and sending inquiries to all joint ventures.

In order to complete the evaluation of the offers and discuss the offers with the joint ventures contractors, and to ensure their compliance with all the project requirements as listed in the bid specification, several meetings were held via video communication with all the contractors in the presence of the project management contractor. Face-to-face meetings and field visits to the refinery site will be arranged.

It is planned that the selection of the contractor will be completed no later than the third quarter of 2022, as the implementation of the project will begin upon completion of the work related to the financial closure, which is expected to be reached in the last quarter of 2022.

It was also agreed with AON to appoint them as an insurance consultant for the fourth expansion project to cover the aspects related to the insurance policies, programs and requirements of the project to meet the requirements of financiers and investors. AON will also conduct a study to determine things to be done to include the Business Interruption policy in the financial closing stage (in addition to the policies currently operating in line with investor demand). In addition, ECO and WKC have been assigned to act as an environmental expert (as they have prepared the assessment study). The two companies have worked on preparing a gap study to assess the environmental and social impact of the project and are currently updating the terms of reference in coordination with the Ministry of Environment to cover the operating refining units at the request of the Ministry of Environment and merging them with the environmental assessment documents of the project. In addition, the environmental audit procedures for the existing refinery units have been started to identify the necessary environmental corrections and include them in the terms of reference.

With regard to the procedures for the fourth expansion project financing, and after completing the preparation of the documents required by the investors, the financial advisor, Standard Chartered Bank, started contacting the company’s major shareholders (Social Security and the Islamic Development Bank) and investors wishing to contribute to financing the fourth expansion project (such as the Saudi Jordanian Investment Fund, etc.).

Noting that the necessary documents requested by investors have been completed and provided to them. Many investors have submitted letters of interest in financing, and the stage of verification studies (Due Diligence) will be launched at the investors' request.

The company obtained all the necessary licenses from the Energy & Minerals Regulatory Commission to continue carrying out its various activities. The company obtained a license for refining and storage activity, a license LPG business, a license for lube oil business, a license for central distribution for LPG, in addition to the permit to build the fourth expansion project.

On the level of the relationship with the government, the company is still negotiating with them to agree on the remaining matters related to the financial relationship between them and to resolve some of the obstacles, following the end of the financial relationship between the government and the company, as of May 1, 2018, after the issuance of Council of Ministers decision No. 7633 to postpone the implementation of The specification of petroleum products until the completion of the implementation of the stages of the fourth expansion project, provided that a specific implementation plan is adhered to.

In light of the recovery of crude oil and oil products prices, and as a result of the gradual return of life to normal, and countries got adapted to the coexistence with the Corona virus pandemic, the company’s results show a clear improvement, and the company was able to compensate for its losses in 2020 and achieved unprecedented profits this year.

The Jordan Petroleum Products Marketing Company continues its development and expansion path by opening and managing new stations. namely, Burj Al-Hayat station / Al-Quwaira, Khurais station / Irbid, Al-Jundi station / Zarqa, AlJaludi station / Radio Area, Sakhr Al-Sakhur station /Giza, Sokhna station, Al-Hourani station / Radio Area, Al-Enaizat Station / Abu Nseir; and Al-Halles Station/ Al-Quwirah, Jerash station / Kafr Khil, Wadi Musa station / Petra, Al-Ra’i station / Mafraq, Umm Al-Basateen station / Naour, Ismail Al-Khatib station / Ma’an, Karak station / Zai, Lozi station / Jubaiha, Marka station / Abu Tin, Al-Shaheer station, Al-Khatib 2 station, Al-Mutakamela station / Marka, Al-Aqsa station, Suha Abdullatif station, and Al-Shehab station / Al-Subaihi.

It should be noted that at the beginning of 2022, Al-Saqqa station / 100th Street, Al-Zeinat station / Wadi Al-Rimam, and Matikri station were opened and are managed by the marketing company.

Until the end of 2022, it is planned to open and manage the back road station / Aqaba, Al Al-Bayt University station, royal court station, royal guard station, Azraq base station, the Gardens Street station / Amman, the Qatraneh station / Ruba al-Amir, Al-Sudani station / Zarqa, Mustafa Yassin station / Al-Wahadna, Al-Faisaliah station / Al-Dibs, Benno station / Sweileh, Al-Shishani station / Sweileh, Beit Ides station, Abdullah Ghosheh Street station, Al-Shidiyah station and AlSakhir Al-Zaiti station, in addition to continuing to renovate the older stations. Until third quarter of 2021, Jordan Petroleum Products Marketing Company has also developed customer orders transfer system through the activation of smart applications through smart systems for fuel orders and the transfer and automatic submission of station orders, in addition to activating the electronic payment service for all services provided by the Company through eFAWATEERcom: re-loading of cards, paying for fuel requests, or pre-payments for home distribution orders and factories’ and companies’ orders.

The automation system for the gas stations and the electronic cards system have also been upgraded by adding the feature of activation of the card's password service, controlling the vehicle's expense and fuel consumption according to the mileage in kilometers indicated by the vehicle’s odometer, or through linking the vehicle to the Global Positioning System (GPS) tracker, as well as developing (RFID) system for filling and electronically controlling the price changes for all the owned stations, which are managed from the control room.

The company has conducted specialized training courses in up-to-date health and occupational safety management and mechanisms for dealing with hazardous materials in terms of road transport for all company tankers’ drivers.

During the year 2022, it is planned 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 intensify training for all employees on the latest occupational health and safety management systems, provide them with all necessary equipment, and apply the latest systems in the protection of facilities against theft and risks.

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 counters and their inventory and also automation of the orders of home distribution customers through the application of automated simulation systems with customers in terms of demand and delivery.

Smart applications will also be activated to organize technical support for customers at their stations, in addition to completing the inventory automation and electronic selling systems in all managed and supplied stations.

With regard to the lube oil activity, the Company has completed the project of amending the packaging designs used to package its products, as the packaging designs of size (20) liters and (25) liters are being amended in order to reduce imitation of JoPetrol oils products and come up with more attractive designs. Moreover, experimental packages have been produced, and the new designs are being registered at the Chamber of Commerce and Industry to maintain their ownership. Final approval has been obtained and their production will begin in 2nd quarter of 2022.

As part of the factory’s renovation plan, work is under way to purchase and install a new production line to fill (1) liter packages. The tender has been awarded and the production line is under manufacturing, installation and operation are expected to be completed in last quarter of 2022.

Under the cost reduction plan, work is under way to purchase and install a dissolving system for some of the additives. The tender has been awarded and the production line is under manufacturing. The production line installation and operation is expected to be finalized in last quarter of 2022. In addition, new tanks will be installed in order to expand in importing of bulk additives in flexible tanks with a size of (20) cubic meters. Also, solar power system will be installed. The tender has been awarded and installation and operation are expected to be completed in 2nd quarter of 2022.

The plan also includes improving the general appearance of the plant and its infrastructure, completing the modernization of production lines by rehabilitating some lines, purchasing new lines, improving the storage capacity of ready-made oils by installing additional overhead tanks, as well as modernizing a set of tank pumps.

The lube oils laboratory is being renovated through purchasing new and modern testing devices in order to improve the laboratory’s reliability, it will be qualified to test used lube oils in order to raise the level of after-sale service, noting that the laboratory obtains global accreditation through the accreditation unit. The plan also includes the production of new types of lube oils with higher performance levels, such as gasoline engine oil with performance level (API SP) and diesel engine oil with performance level (CJ).

As for exports, part of the factory’s plan is to expand its exports to include Sudan and Yemen and to cover all addition regions of Chad in addition to the neighboring regions, such as Libya and Cameroon. In addition to continuing exports to Iraq, Lebanon, Liberia, Palestine and Georgia. Moreover, delivery vehicles of finished goods to customers are being replaced by modern ones.

The plan also includes the automation of work procedures, whereby Radar systems will be installed for base oil tanks and mixing tanks in the oil factory, noting that the tender has been awarded and installation and operation are expected to be finalized in 3rd quarter of 2022. Also, computerized systems are currently being updated to automate work procedures between various activities of the factory.

It should be noted that the company is in the process of activating the Jordan Lube - Oil Manufacturing Company during the year 2022 to include the entire lube oil activity. This will be made after the company obtained the necessary license for this activity from the Energy & Minerals Regulatory Commission.