Baku, Azerbaijan, March 9
By Leman Zeynalova – Trend:
EPC (engineering, procurement and construction) contractors of Azerbaijan’s state oil company SOCAR for the reconstruction of existing units and construction of new units have started the detailed engineering design, Ibrahim Ahmadov, SOCAR Public Relations Officer told Trend.
He recalled that the EPCm contract for the reconstruction of existing units was signed with the Spanish Tecnicas Reunidas (TR) in December 2017, while the construction of new units was awarded to the Italian Maire Tecnimont in February 2018 on the EPC basis.
“They have both already started the detailed engineering design,” noted Ahmadov.
He pointed out that according to the current contracts signed with partners, the final expenditure may vary depending on the amount of work, since the amount of the units to be purchased and extent of the construction are not completely defined.
“The agreement signed with Tecnicas Reunidas is an EPCm contract and is estimated to cost around $800 million, excluding taxes and customs. The contract signed with Maire Tecnimont is an EPC agreement and it will cost around $850 million, plus tax and custom duties,” said Ahmadov.
However, the value assessment of both agreements is conditional and the overall financial expenditure will be known only at the end of the project, he added.
Modernization of the Heydar Aliyev Baku Oil Refinery will be completed in 2021. After modernization, the operational period of the refinery will be extended to 2040, while its refining capacity will rise from 6 to 8 million tons of oil per year.
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