The contract for construction of new units as part of modernization of Baku Oil Refinery named after Heydar Aliyev is planned to be signed in the first quarter of 2018, advisor to vice-president on strategic development at Azerbaijan’s state oil company SOCAR Teymur Aliyev told Trend.
“Two tenders were launched simultaneously for selecting EPC (engineering, procurement and construction) contractors as part of modernization of Baku Refinery. The first tender to select ЕРСm (engineering, procurement and construction management) contractor for units subject to reconstruction was completed and a contract was signed with Spanish Tecnicas Reunidas on Dec.19, 2017,” he said.
Aliyev noted that the second tender for selecting EPC contractor for construction of new units is close to completion. “It is planned to sign the contract in the first quarter of 2018,” he added. The cost of the contract with Spanish engineering company Tecnicas Reunidas, is about $800 million.
The contract 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.
The Baku Oil Refinery’s modernization will be completed in 2021. The refinery’s processing capacity will be increased from 6 to 7.5 million tons of oil per year. SOCAR announced the liquidation of Azneftyag oil refinery and its merger with the Heydar Aliyev Baku Oil Refinery in 2015. This decision was made as part of the work to improve and optimize SOCAR’s structure.