Saudi financial services firm Swicorp announced Saturday that it has invested an undisclosed amount in Algerian oil jobber Petroser to help fund new lubricant and bitumen plants.
Petroser said in July that it was nearing completion on construction of a blending plant in Oran, Algeria. It pegged the cost of that facility at of 30 million (U.S. $47.4 million) and said it will have capacity to produce 40,000 metric tons of lubricants per year. BP is a partner in the project, but is contributing lubricant formulations and blending expertise; Petroser is footing the bill.
The bitumen blending plant is a separate project.
Officials with Riyadh-based Swicorp said they entered the partnership with Petroser because they see potential for significant growth in the petroleum product market in Algeria. Petroser distributes fuels, as well as lubricants and other oil products. Economic growth and investment in infrastructure in Algeria are stimulating increased demand, which suppliers are struggling to meet.
We look forward to working closely with the senior management team of Petroser to leverage what we believe is a unique opportunity in this sector, said Nabil Triki, managing director and head of private equity at Swicorp.
Petroser Chief Executive Officer Abdelmalek Sahraoui said Swicorps financial support will help it take advantage of the current market opportunity.