Officials from SOCAR and Maire Tecnimont during EPC contracts signing ceremony. Credit: State Oil Company of the Azerbaijan Republic.

Heydar Aliyev Oil Refinery, a subsidiary of State Oil Company of Azerbaijan Republic (SOCAR), has awarded two engineering, procurement and construction (EPC) contracts to Maire Tecnimont for new generation refining units.

The two EPC contracts are jointly valued at approximately $160m.

The contracts have been awarded to Maire Tecnimont’s subsidiaries Tecnimont and KT – Kinetics Technology as part of the modernisation and reconstruction of Heydar Aliyev Oil Refinery in Baku, Azerbaijan.

The first contract involves the installation of an FCC gasoline hydrotreating unit, while the second contract will see the installation of an LPG mercaptan oxidation unit and an amine treatment and LPG pretreatment unit at the refinery.

Maire Tecnimont said in a statement: “This is a major milestone for Maire Tecnimont Group’s core business, since it allows to further consolidate the group’s industrial footprint in the strategic Azerbaijani market and in the crucial natural resources transformation sector.”

SOCAR said that the three new units are crucial to the quality upgrade of gasoline to the EURO-5 standard at the refinery.

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Tecnimont and KT-Kinetics Technology are already executing an EPC contract, which was awarded in 2018, at the refinery.

The first EPC contract is planned to be completed within 33 months, while the second contract work is scheduled for completion in 26 months from the date of signing the contract.

SOCAR president Rovnag Abdullayev said: “SOCAR’s Heydar Aliyev refinery, being the only oil refining complex in the South Caucasus region, plays an important economic role. It’s the only regional fuel supplier as well as a feedstock provider to SOCAR’s petrochemical units.”

Abdullayev said that the modernisation of the refinery will significantly improve the diesel and gasoline quality it produces, upgrading them to comply with EURO-5 standards.

“On the other hand, it will supply the petrochemical industry of Azerbaijan with sustainable and cost-efficient feedstock. While modernisation is an inevitable business standpoint, it will also reduce the environmental footprint and increase the quality of life in our cities,” Abdullayev added.

In 2016, SOCAR selected Amec Foster Wheeler to modernise the Heydar Aliyev Refinery.