Malaysian conglomerate YTL Corporation, through its utilities subsidiary, YTL Power International Berhad (YTLPI), is investing in a 5.0 billion USD oil shale power project in Jordan through the acquisition of a 30 per cent equity stake in Eesti Energia's Jordanian project.
Eesti Energia of estonia, a world leader in the oil shale sector, and its Jordanian partner, Near East Investment (NEI), together with YTLPI, will develop an oil plant with an output of approximately 38,000 barrels per day, YTL said in a statement issued here Tuesday.
Construction will commence following further analysis of the resource and environmental studies. The plant will utilise Eesti Energia's leading proprietary oil recovery technology, which has more than 30 years of industrial production in Estonia.
As the new strategic partner, YTLPI will contribute its experience in developing and operating large energy production and trading assets in emerging markets. YTLPI operates electricity generating plants in Malaysia, Singapore and Indonesia as well as a water and sewarage company in Britain.
According to the new shareholding structure, Eesti Energia will own 65 per cent, YTLPI 30 per cent and NEI 5.0 per cent of the oil shale projects in Jordan. Eesti Energia, is the national energy company of Estonia, which is internationally known as Enefit.
"We are delighted to have the opportunity to invest alongside Enefit, with its leading expertise in oil shale-fired power generation and technology for oil recovery," said YTLPI executive director Yeoh Seok Hong, who declined to say how much the company is paying for its stake.
Enefit's chief executive officer, Sandor Liive, said YTL's presence would make a great contribution to the realisation of these projects which would put Jordan for the first time on the way to energy independence.
In May 2010, Jordan Oil Shale Energy Company, a subsidiary of Eesti Energia, signed a concession agreement with Jordanian government for the mining of oil shale from Attarat um Ghudrun oil shale deposit in Jordan.
This was the first surface mining oil shale concession to be awarded by the Jordanian government.
