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SOCAR inks another deal on oil refinery modernization

Business Materials 11 February 2016 14:45 (UTC +04:00)

Baku, Azerbaijan, Feb. 11

By Maksim Tsurkov - Trend:

Azerbaijan's state oil company SOCAR and Italian KT-Kinetics Technology SpA signed a contract on licensing the construction of a sulphur production facility as part of modernization of the Heydar Aliyev Baku Oil Refinery, SOCAR said in a statement posted on its website Feb. 11.

While delivering speech at the contract signing ceremony, Rovnag Abdullayev, SOCAR's president, said that the Heydar Aliyev refinery reconstruction project is currently one of the most important for SOCAR, the statement said.

"As a result of the project implementation, the existing technological units are planned to be modernized and new units are planned to be constructed," he said. "The processing capacity of the refinery is planned to be increased from six million tons to 7.5 million tons per year."

"The catalytic cracking unit capacity is planned to be increased from two million tons to 2.5 million tons per year," he said. "The production of oil products meeting the Euro 5 standards will be established."

SOCAR has chosen KT-Kinetics Technology S.p.A as a licensor of the construction of the sulphur production facility, the statement said.

The contract was signed by Elman Ismayilov, the director of the Heydar Aliyev refinery, and Michele Colozzi, the business development manager at Italian KT-Kinetics Technology S.p.A.

Earlier, SOCAR signed contracts with Austrian Pörner Group, French company Axens and US UOP as part of the modernization of the Heydar Aliyev Baku Oil Refinery.

The process of modernization of the Heydar Aliyev Baku Oil Refinery will be completed by late 2018.

After the completion of the reconstruction, the processing capacity of the refinery will increase from 6 million to 7.5 million tons of oil per year. The modernization is estimated at $1 billion.

SOCAR announced the liquidation of Azneftyag oil refinery and its merger with the Heydar Aliyev Baku Oil Refinery in January 2015.

This decision was taken as part of the work to improve and optimize SOCAR's structure.

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