Nov. 23 (Bloomberg) -- The dismantling of a 44-year-old German refinery for shipment to India has been delayed by about a year after financial markets tightened and the buyer, Cals Refineries Ltd., couldn’t raise necessary funds.
Bayernoil Raffinerie GmbH’s 90,000 barrel-a-day facility in Ingolstadt should be taken apart fully by the third quarter of 2010, Managing Director Michael Raue said in a phone interview today. Talks with the Indian company have recently advanced, he said, without elaborating.
The German refiner, a joint venture of four European oil companies, sold the Ingolstadt facility to cut output as consumption of oil products wanes in its home market. Cals has said demand for refining capacity make buying an existing plant and shipping it to India more practical than building a new one.
“Their funding was mowed down by the financial crisis,” said Raue. “It cost about a year.”
Some parts of the plant have already been disassembled, and scanning with lasers to create a three-dimensional map of the refinery has been conducted, the managing director said. He declined to comment on when the facility could be reassembled at the Cals site in Haldia, India.
Vishal Rastogi, an investor relations spokesman for Cals, didn’t immediately respond to an e-mail seeking comment and a call to his office went unanswered.
Bayernoil is concentrating on two other sites as it expects German oil consumption to sink as efficiency measures mean consumers opt for fuels such as diesel over gasoline. The joint venture has three refineries within about 5 kilometers (3 miles) from the center of Ingolstadt, a town in Bavaria where luxury carmaker Audi AG is based.
Bayernoil uses crude from Africa, Venezuela, Norway and Saudi Arabia. OMV AG of Austria owns 45 percent of Bayernoil, according to the company’s Web site. Agip Ltd. owns 20 percent, Ruhr Oel GmbH 25 percent and BP Plc 10 percent.
Lohrmann International GmbH said last year that it oversaw the sale to Cals and is charged with dismantling and shipping the Ingolstadt refinery.
To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg
That was fast got a mail from the reporter , from answers it seems CALS is on its way...
Hi,
thank you for your e-mail. I am glad it had such resonance with you, but I
am afraid that as a Journalist I am not allowed a personal opinion.
Since we could not get in touch with Cals, I can`t say precisely how much Lohrmann has been paid in the process or by whom. Just becase our call and e-mail weren`t answered by no means implies Cals ``are not ready to face media`` - I work very frequently with investor relations and press departments and sometimes they don`t call back. As regards the question of capital and loans, I think you will have to interpret the fact that the talks on the getting the refinery dismantled and shipped are advanced for yourself.
wow thats some news. Atleast one thing is for sure. This company is not actually bogus as I had started to think. So this means I can expect some good return on investment in the long terms.
Icici technical analysys showin that cals will be reaching 0.01-0.06 rs.
Price Bars | Candlesticks | Line | Mountain
You may find additional events by using the Historical Technical Event® Lookup.
View Event Date Event Opportunity Type Close at Event Target Price Range
Nov 23, 2009 Descending Continuation Triangle Long-Term Bearish 0.53 0.01 - 0.06
u r correct. prediction about cals refinery cannot be done on technical basis. it is purely news based stock. once the news will be in the market it will go up, till then it would trade just like this..
normally if a company does not reply on a particular query that indicates a precursor to some big announcement....either positive or negative....w.r.t to the news article published it seems the news will be positive...
Looks like things are +ve , we can not predict its stock market.
But yes now they are under pressure from GOV to act soon with the extension , bayernoil becoming restless , investors getting tired....Its high time they have to act. More extension everyone will loose interest.
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