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Uzbek oil and gas company to carry out major modernization at Fergana oil refinery

Uzbekistan Materials 28 September 2022 16:21 (UTC +04:00)
Uzbek oil and gas company to carry out major modernization at Fergana oil refinery
Natavan Rzayeva
Natavan Rzayeva
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BAKU, Azerbaijan, September 28. Uzbekistan’s Sanoat Energetika Guruhi (SEG) has initiated a major upgrade to the Fergana oil refinery, Trend reports via the company.

The project, expected to cost over $400 million, is intended to fully modernize the 63-year-old facility. Once completed, the refinery will be the only plant in Uzbekistan able to produce Euro 5 gasoline and Group II+/III lubricants as defined by the American Petroleum Institute.

SEG took over trust management of the refinery in February 2020 and acquired the state’s stake in the facility in June this year. The current upgrade will be the largest and most comprehensive in the history of the enterprise. Between 1997 and 2000, a spot reconstruction of the fuel unit occurred, but a complete renovation has not been carried out in over 60 years.

Project completion is expected in late 2023. Originally built in 1959, the enterprise was sourced with raw materials from Western Siberia fields and was part of the all-Soviet system of processing raw materials. Production prior to the transfer to SEG’s management averaged just 1 million tons per year.

To date, with the involvement of Uzbekistan’s Enter Engineering, the EPC contractor, excavation has already been completed and construction is underway on several new installations including a steam boiler house with a chemical water treatment plant, a hydrocracking unit, as well as new buildings for the central control room and laboratory, and various storage tanks.

As part of the project launch, SEG has attracted over $160 million in investment. Licensing and engineering agreements have been concluded with Axens (France) and Wood (UK and Italy).

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