Dubai: Bangladesh's largest industrial conglomerate Beximco Group has announced a tie-up with Marasel Company Ltd, owned by Prince Salman Bin Sultan Bin Abdul Aziz Al Saud of Saudia Arabia, to participate in a bid to finance BMRE (Balancing, Modernisation, Renovation and Expansion) project of Eastern Refinery Ltd, the sole oil refinery of Bangladesh.

The joint bid will be submitted today. The Bagladesh government aims to increase the refinery's capacity from 1.5 million tonnes per annum (MTPA) to 4.5 (MTPA) on Build Own Operate Transfer (Boot) or Public Private Partnership (PPP) basis.

The value of the BMRE project is estimated at around $1 billion (Dh3.67 billion).

"We have already mobilised necessary resources for this purpose as we deem oil and energy sector has a huge potential for us to grow," says Slaman F Rahman, vice-chairman of the Group.

The expansion of the refinery will play a vital role in meeting the rising demand due to growth in economy.

Talking to Gulf News from Saudi Arabia, Rahman said, his company would like the relationship to expand into more upstrean oil and gas exploration in Bangladesh.

"The present Bangladesh government is opening up the country's energy and power sector to foreign investment and we see a lot of investment opportunities in these sectors. The Middle Eastern countries have expertise in these sectors. Therefore, we expect them to invest in Bangladesh."

Salman Rahman and his elder brother Sohel Rahman runs Beximco, one of Bangladesh's largest diversified conglomerate with annual turnover exceeding $500 million (Dh1.83 billion).

Rahman, a close associate of Bangladesh Prime Minister Shaikh Hasina, said, he is planning to expand business in the Gulf.

"We are planning to open two offices, one in Dubai and the other in Saudi Arabia to explore more partnerships and opportunities," he said.

The Expression of Interest is being submitted by Beximco and Marasel in response to a notice by Bangladesh Petroleum Corporation/Eastern Refinery Limited (ERL) inviting national and international companies to finance the BMRE project of Eastern Refinery for augmenting its capacity.

ERL, being the only petroleum refinery of Bangladesh, meets only around 30 per cent of present petroleum products consumption, while the remainder is being imported as finished products.

Feasibility study

The BMRE of ERL has become necessary to ensure desired energy security, produce eco-friendly fuels, complying with Euro-III specification and offset petroleum products deficit.

A feasibility study for BMRE has been carried out recently by international consulting firm with IDB financing.

The proposed BMRE project will be installed in the existing ERL area. Utilisation of existing infrastructures and sharing of common facilities, storage etc., will result in reducing investment cost, the Group says.

The project is estimated to be implemented in around three years' time.

Beximco has businesses ranging from textiles to pharmaceutical to media and recently acquired the country's biggest private airline and reclaimed the single largest stake in the oldest private bank, IFIC.

It has also invested in the company that owns Dhaka's Westin Hotel with plans to build a few more five-star hotels.