Baku, Azerbaijan, Dec. 21
By Maksim Tsurkov – Trend:
The cost of the EPC (Engineering, Procurement, and Construction) contract for reconstruction of units at the Heydar Aliyev Baku Oil Refinery within its modernization project, signed between Azerbaijan’s state oil company SOCAR and Spanish engineering company Tecnicas Reunidas, is about $800 million, the Spanish company said in a message Dec. 21.
The contract awarded to Tecnicas Reunidas includes implementation of work to modernize main technological units of diesel and gasoline blocks, modification and expansion of related economic facilities, as well as coordination of activity under the contract with the refinery and other contractors.
“This is a cost-reimbursement contract,” the message noted. “All the work under the contract should be implemented within 38 months.”
The cost of modernization of the refinery is estimated at about $1.5-1.7 billion. The exact cost will be known once all EPC contracts are awarded.
After modernization, the production capacity of the refinery will increase from 6 million to 7.5 million tons per year, and its operational period will be prolonged to 2040.