Técnicas Reunidas and SOCAR Heydar Aliyev Oil Refinery sign reconstruction agreement

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19 December 2017

Modernisation works at Heydar Aliyev Oil Refinery envisage the production of higher-quality fuels. Modernisation of the Refinery will continue until 2021.

In this regard, SOCAR-KBR, a contractor of project management consultancy (PMC), has selected Spanish Técnicas Reunidas (TR) as a winner of a tender on an Engineering, Procurement, and Construction (EPC) contract for reconstruction of units and general production facilities,”.

On December 19, Heydar Aliyev Oil Refinery signed an EPC contract with Técnicas Reunidas for reconstruction of units at the Refinery as part of its modernisation project.

The signing ceremony was attended by SOCAR’s President Rovnag Abdullayev, Vice President for Strategic Development Tofig Gahramanov, Vice President for Refining David Mammadov, Vice President for Economic Issues Suleyman Gasimov, Director of Heydar Aliyev Oil Refinery Elman Ismayilov, Vice Chairman of the Board and CEO at Técnicas Reunidas Juan Lladó Arburúa, TR Director General for Corporate Development Enrique Ruben Alsina Massana, TR Head of Proposals Department Carlos Molinero Monge, and other officials.

The contract was signed by the Director of the Heydar Aliyev Oil Refinery Elman Ismayilov and the Director General of Técnicas Reunidas Enrique Alsina Massana.

Following the completion of front-end engineering and design (FEED) work, PMC contractor SOCAR-KBR held a tender for selection of an EPC contractor for realisation of Engineering, Procurement, and Construction/Management (EPC/EPCM) works. 10 international companies participated in the tender, while technical and commercial proposal submitted by TR, won with the highest combined score. It should be noted that reconstruction works at the Refinery will be conducted in two directions: Construction of new facilities and reconstruction of existing main facilities and units.

The contract with TR envisages reconstruction of existing facilities and general economy of the plant.

Speaking at the event, SOCAR President Mr. Abdullayev congratulated Técnicas Reunidas on becoming winner of tender: “SOCAR implements a number of large investment projects in the field of production and processing. Diversifying our business portfolio, we contribute to the diversification of the national economy. SOCAR's reconstruction and modernisation project at Heydar Aliyev Oil Refinery has a special place in this context. After construction of a new bitumen facility within the phase-1 of the revamp we are now on the verge of launching new and more efficient facilities for production of high quality engine fuels, diesel and gasoline products meeting the Euro-5 standards. I believe that cooperation with Técnicas Reunidas will contribute to success implementation of this project”.

Speaking at the signing ceremony, Vice Chairman of the Board and CEO at TR Juan Lladó Arburúa said: ''I would like to express my gratitude to SOCAR management and the project team for their trust in Técnicas Reunidas. I believe that the reconstruction works at Heydar Aliyev Oil Refinery will be carried out in a timely manner, following the high quality and safety rules.”

Rapid expansion of transport in Azerbaijan has led to a growing demand for high quality fuels. The revamp project at Heydar Aliyev Oil Refinery aims at meeting the rising demand on the local market, while integrating with SOCAR’s other downstream projects, in order to strengthen the export potential and improve the ecological situation in the country.

Reconstruction works envisage three-phase implementation process and construction of 14 new facilities:

Phase I - construction and commissioning of a new Bitumen rig and associated plant facilities, as well as a new gas-filling station in 2018;

Phase II - construction of new facilities for producing diesel fuel meeting the Euro-5 quality standard and implementation of relevant reconstruction works by the end of 2020;

Phase III - construction and reconstruction of new A-92/95/98 petrol production facilities by 2021 meeting the Euro-5 quality standards.

Annual processing capacity of the plant will ultimately increase from 6M tons to 7.5M tons, quality indicators of produced gasoline and diesel fuel will meet the Euro-5 standards, and A-92/95/98 gasoline will be produced at the plant. Implementation of the project envisages optimisation of operation costs of Heydar Aliyev Refinery and complete shutdown of infrastructure, belonging to former Azerneftyagh Refinery.

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