Saras Eyes Upgrade Projects for Refinery
by AFX News Limited
November 08, 2007
Saras SpA has several ideas about investments to upgrade its Sarroch refinery in Sardinia but it is not looking at a capacity
expansion, said managing director Dario Scaffardi, adding he does not expect any major cost overrun.
"We are not looking at capacity expansion, it's unlikely at the moment. What
we are looking at is having further conversion," Scaffardi said in a conference
call after the release of its third-quarter results Wednesday morning.
"Other possible options include a new power plant and co-generation unit.
There are a variety of ideas at the moment," he said, adding that no definitive
decision has yet been taken.
Scaffardi said the "very good returns" from brownfield investment has made
Saras more careful to possible upgrade projects at the refinery and that its
location in Sardinia makes investments there safe from major cost overruns.
"We don't see any major cost overruns. We're largely shielded due to the
fact we operate in Sardinia, and local engineering firms haven't really changed
in a significant way their pricing policy towards us," he said.
Scaffardi said Saras is still looking to acquisition opportunities in the
refining, marketing, and oil logistics sectors and confirmed the company will
adopt a disciplined approach to any operation.
On its gas exploration activities, he said offshore tests will start in the
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