Fairfax, investors to build USD 4bn oil refinery in Ethiopia

Fairfax Africa Fund (Fairfax) plans to build a refinery in Ethiopia at a total cost of USD 4bn. Fairfax initially planned to embark on this project with Asian investors, whose core business is oil trading and infrastructure development, but may be joined by American investors who have expressed an interest in the project.

Investors evaluated a number of locations before settling on Awash town, on the Ethio-Djibouti corridor, which is 221km east of Addis Ababa, the capital city. The refinery will initially have the capacity to process six million metric tonnes of crude oil which is equal to approximately 120,000 barrels per day. Ethiopia currently uses three million metric tonnes of crude oil annually.

The refinery’s capacity will eventually be expanded to twelve million metric tonnes per year, which will also serve the wider East African market.

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