Azernews.Az

By Sara Israfilbayova

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 that 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 December19, 2017,” he said.

Aliyev noted that the second tender for selecting EPC contractor for construction of new units is close to completion, adding that it is planned to sign the contract in the first quarter of 2018.

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.

At present, the Heydar Aliyev Baku Oil Refinery, is being modernized and the process will be completed by 2021. The production capacity of the refinery will be increased from 6 million to 7.5 million tons per year as a result.

SOCAR announced the liquidation of the Azneftyag refinery and its merger with the Baku Oil Refinery named after Heydar Aliyev, in 2015. This decision was made in the framework of works to improve and optimize the structure of SOCAR.

The refinery meets Azerbaijan’s entire demand for petroleum products and exports 45 percent of the products. The petroleum products processed at the plant include automotive gasoline, aviation kerosene, diesel fuel, black oil, petroleum coke, and others.

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