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Maire Tecnimont wins $800m EPC contract for Socar’s refinery revamp in Azerbaijan

EBR Staff Writer Published 02 February 2018

Maire Tecnimont subsidiaries Tecnimont and KT-Kinetics Technology have been awarded an approximately $800m engineering procurement and construction (EPC) contract for new facilities as part of the modernization and reconstruction of the State Oil Company of Azerbaijan Republic’s (Socar) Heydar Aliyev Baku oil refinery.

Azerbaijan’s state oil company Socar intends to upgrade the Heydar Aliyev Oil Refinery to increase the production volume to 7.5 metric tons per annum (MMTPA). It intends to produce high-quality Euro 5 standard compliant diesel, gasoline and other fuels.

The refinery’s EPC phase comprises two parts including construction of new units and reconstruction of the existing ones.

As part of the contract, Tecnimont/Kinetics Technology Alliance will be responsible for the installation of several new grass root process units, the relevant utilities and storage.

Other new process units to be installed include a Naphtha Splitter, a Diesel Hydrotreater Unit, an Isomerization Unit, a Hydrogen Production Unit, two PSA Units, a C4 Hydrogenation Unit, a MTBE Unit, and a Sour Water Stripper Unit with Sulphur Recovery Unit.

Maire Tecnimont CEO Pierroberto Folgiero said: “After our two strategic petrochemical projects in Azerbaijan, this contract enables Maire Tecnimont Group to consolidate the fruitful relation with SOCAR also in the refining business, supporting the strategy of integration with the petrochemical business.”

Técnicas Reunidas has been selected for the reconstruction of existing units at the refinery.  

The refinery upgrade, which is managed by SOCAR-KBR, is being carried out in phases and is planned to be completed in 2021.

The first phase of the project involves construction of a new bitumen plant, new LNG station and other related facilities while the second phase includes construction of Euro 5 diesel production units and reconstruction of the related facilities by the end of 2020.

In addition to enhancing the export potential and profitability of the refinery, the upgrade project would optimize the operational refinery’s expenses and improve the environment in the region, Socar said.


Image: Officials from Maire Tecnimont, Tecnimont, KT-Kinetics Technology and Socar. Photo: courtesy of  State Oil Company of the Azerbaijan Republic.