KBR Joint Venture Awarded Important Project Management Contract for Baku Oil Refinery Modernization

abarrelfullabarrelfull wrote on 08 Jan 2019 09:11

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March 8, 2016 - KBR, Inc. (NYSE: KBR) today announced its SOCAR-KBR joint venture was awarded a significant project management consultancy (PMC) Contract for the Heydar Aliyev Baku oil refinery modernization project in Azerbaijan.

This award marks the first major award to the joint venture, SOCAR-KBR Limited Liability Company (SOCAR-KBR LLC), since its inception in mid-2015. SOCAR-KBR LLC was created to provide design, engineering, technical, consultancy, procurement, construction supervision and project management services for all brownfield and greenfield projects across the upstream, midstream and downstream oil and gas sectors, in the Azerbaijan–Georgia–Turkey (AGT) region. This company was formed to help Azerbaijan's ambition for creating a world-class Azerbaijan based engineering company.

SOCAR-KBR LLC will build upon KBR's long-term project experience in Azerbaijan to perform project management services from its established offices in Baku for the Heydar Aliyev Baku oil refinery modernization project.

Addressing the contract signing ceremony, Rovnag Abdullayev, SOCAR's President, said, "The Heydar Aliyev refinery reconstruction project is currently one of the most important investments for SOCAR globally, and I am very happy that this project is in the capable hands of one of SOCAR's own entities—namely the SOCAR-KBR joint venture."

The overall refinery capacity will be increased from 6 to 7.5 million tons per year (MYPY).The catalytic cracking unit capacity will be increased from 2 to 2.5 MTPY, and Euro 5 standards will be established for all refined products. The modernization of the Heydar Aliyev Baku oil refinery will begin immediately and will be completed by late 2018, with an estimated capital cost of $1 billion USD for the total project.

"KBR is proud to support our long term partner SOCAR on this project. It is very significant that SOCAR-KBR LLC, as an Azerbaijani Company, takes on the PMC role for this key project for Azerbaijan," said Jan Egil Braendeland, President, KBR EEA and SOCAR-KBR LLC Board Member. "KBR has worked on various projects in Azerbaijan since 1994, achieving more than 17 million man-hours. At peak times, KBR employed nearly 400 Azerbaijani workers—expending more than 4 million man-hours in country. We are very proud of our track record to the Azeri economy," continued Braendeland.

The value of the PMC contract is undisclosed and will be booked into the backlog of unfilled orders for KBR's Engineering & Construction business segment in Q1 of 2016.

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