CityView Corporation Limited (CTVWF.OB) is an Australian-based natural resource company with a diverse portfolio of copper, gold, diamonds, coal, iron ore, rare earths and oil refinery interests. The company today announced a joint venture with Deanshanger Project Ltd. for the acquisition of a crude oil refinery with a daily capacity of 55,000 barrels.
The acquired Tagore Investments S.A. refinery will later be revamped to produce 100,000 barrels each day, and will be relocated to Nigeria. CityView CEO Mark Smyth said the company will commence shipment and construction of the new refinery this year, and will begin operations in early 2010.
â€œFollowing the installation of the first module, the JV has plans to increase production of the refinery to 100,000 bpd by 2011,â€ Smyth stated.
Deanshanger specializes in infrastructure development and project management, and will arrange the delivery of the project through a Public Private Partnership deal with DPL Energy Ltd., the necessary Nigerian government authorities, as well as private investors.
Per the agreement, CityView will own a one-third stake in the refinery; Deanshanger and its partners and investors will own two-thirds. In the press release, CityView noted that according to the 2008 BP Statistical Energy Survey, Nigeria had proved oil reserves of 36.22 billion barrels at the end of 2007, and that by 2010, the Nigerian Government plans to expand its proven reserves to 40 billion barrels.
Smyth said that CityView and Deanshangerâ€™s collaborative efforts will poise the companies to take advantage of federal initiatives.
â€œOur strategy to set up an oil refinery in Nigeria was initiated in August 2008, and we are pleased to move one step closer to finalizing this key asset acquisition. Deanshanger specializes in major infrastructure projects in Nigeria and has an excellent track record for successfully organizing large-scale projects there,â€ Smyth stated in the press release. â€œTogether, we have assembled a great team that is ready to capitalize on government initiatives to increase oil reserves.â€