Uzbek oil refineries to attract almost $900M of investment

Oil&Gas Materials 6 May 2019 12:44 (UTC +04:00)

Baku, Azerbaijan, May 6

By Fakhri Vakilov – Trend:

Uzbekistan to attract investments in the amount of $875 million to modernize the Fergana refinery and the Altyaryk oil refining enterprises by 2022, Trend reports with reference to the presidential press service.

President of Uzbekistan Shavkat Mirziyoyev visited the Fergana Refinery on May 6.

Earlier, in February, the president instructed investors to transfer the plant in trust management. On April 10, he signed a decree on the modernization of the Fergana refinery with the attraction of foreign direct investment.

Modernization is carried out jointly with the Indonesian company RT Trans Asia Resources in three stages.

The complex covers 475 hectares, includes 52 technological objects. Over 70,000 people work here.

However, over the past ten years the company has proved to be unprofitable due to the wear and obsolescence of technology and the dependence of production on imports. The capacity of the plant dropped to 30 percent despite an annual capacity of 6.4 million tons.

This year, the plant is scheduled to attract direct investments in the amount of at least $300 million.

At the expense of these funds, work of 7 out of 11 installations will be restored within two months, 7100 jobs will be saved and 450 people will return to work

The report notes that the supply of raw materials to the plant is planned to double. Starting from 2020, the refinery will be producing Euro-4 and Euro-5 diesel fuel. The cost price will decrease and the product quality will increase, due to which the export potential of the region will expand.

The President ordered to provide the plant with raw materials and increase production volumes.


Follow author on Twitter:@vakilovfaxri