17:50 - 1.02.2018

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February 1, Fineko/abc.az. The Tecnimont/Kinetics Technology alliance and the Baku Oil Refinery n.a. Heydar Aliyev of the State Oil Company of Azerbaijan (SOCAR) signed a contract for construction of plants within the framework of the project of reconstruction & modernization of the Refinery.

SOCAR reports that the EPC (Engineering, Procurement & Construction) contract includes construction of 10 facilities on the territory of the Refinery.

The Alliance became the winner of the relevant tender procedure held in February 2017 with participation of five international companies.

The Baku Refinery upgrade will be carried out in two directions: construction of new plants, reconstruction of existing main facilities and Refinery’s off-plot facilities. Spain’s Tecnicas Reunidas became the EPC contractor of SOCAR on reconstruction of the existing plants and facilities of the Refinery in December 2017.

The reconstruction of the Refinery will be fulfilled in three phases. The first phase of work includes commissioning of a new bitumen plant and relevant off-plot facilities, and a new LPG filling station.

The second phase includes relevant reconstruction, construction and commissioning of new facilities for production of diesel fuel Euro-5 until the end of 2020.

The third stage includes necessary reconstruction, construction and commissioning by early 2021 the new plants for production of motor petrol AI-92/95/98 on Euro-5 standards.

After reconstruction the Refinery’s capacity on the primary refining of oil will increase from 6 million up to 7.5 million tons a year. It will be organized production of petrol in accord with the needs of the market, optimized Refinery’s operational costs and put out of operation the infrastructure of former refinery Azerneftyag.

After its upgrade the Refinery will produce 1.9 million tons of motor petrol a year instead of current 1.2 million tons (25% of total production of petroleum products at the plant), diesel fuel - 3 million tons per year (37%) instead of the current 1.9 million tons, kerosene – 1 million tons (13%) instead of current 700,000 tons and other petroleum products - 25%.

According to the latest estimates, cost of the project of upgrade and reconstruction of the oil refinery is about $1.5 bn.