SOCAR decides on contractor for project management of new petrochemical complex

Business Materials 18 March 2015 17:12 (UTC +04:00)

Baku, Azerbaijan, Mar.18

By Maksim Tsurkov - Trend:

The State Oil Company of Azerbaijan Republic (SOCAR), as a result of the bidding process, awarded the US- based company Fluor Limited a contract to provide project management contractor services for its new oil-gas processing and petrochemical complex (OGPC) in Azerbaijan, Finanzen.net portal said March 18.

Fluor will book the contract for an undisclosed value in the first quarter of 2015, the message said.

"As the project management contractor, Fluor will support SOCAR's selection and management of future contractors that will perform detailed engineering, procurement, construction, commissioning and start-up of the gas processing plant as well as front-end engineering design, detailed engineering, procurement, construction, commissioning and start-up of the petrochemical plants including associated offsite facilities," the message said.

"Fluor is proud to be selected by SOCAR as the project management contractor on this unique, world-scale project," said Taco de Haan, president of Fluor's Energy & Chemicals business for Europe, Africa and Middle East.

"Fluor has demonstrated expertise in managing downstream megaprojects that will allow us to deliver the project on schedule while meeting safety, quality and cost objectives."

The project will be performed from Fluor's UK office in Farnborough where the company serves a wide range of industries including energy, chemicals, government, industrial, infrastructure, mining and power market sectors.

Fluor Corporation is a global engineering and construction firm that designs and builds some of the world's most complex projects. The company creates and delivers innovative solutions for its clients in engineering, procurement, fabrication, construction, maintenance, and project management on a global basis.

The company is headquartered in Irving, Texas. With 40,000 employees worldwide, the company's revenue for 2014 was $21.5 billion.

The total cost of the first phase of the OGPC project is estimated at $7 billion (including interest on loans - $8.45 billion). It is planned to implement some 30 percent of the project with the equity, and the remaining part of the work will be carried out using borrowed capital. The payback period of the project will last four to five years.

The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant (TPP).

The OGPC construction project implementation will improve the product quality, enhance the export potential of the country and help protect the environment of the capital.

The annual capacity of the refinery as part of OGPC will be 8.5-9 million metric tons; the gas processing plant will be 12 billion cubic meters, petrochemical production will exceed 1 million metric tons (the power of the plant for the production of polyethylene will be 800,000 metric tons, rigs for polypropylene production - 300,000 metric tons).

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