Current value of reconstruction project of Baku Oil Refinery announced

Baku. 23 April. REPORT.AZ/ The cost of the modernization and reconstruction project of the Heydar Aliyev Baku Oil Refinery (BNEZ) is about $ 2.2 billion.

Report informs, Advisor to Vice-President on strategic development at the State Oil Company of Azerbaijan Republic ( SOCAR) Teymur Aliyev said.

He noted that the project is financed by the Government fully via the State Oil Fund of Azerbaijan Republic (SOFAZ).

"Contracts for Reconstruction Devices (Package B) may change in prices. This is related to the facts that, contractor's refuse to sign a contract at a fixed price as installations are old, years of commissioning are different and many of them are in operation for many years. Therefore, it is difficult to give exact value of the project in numbers. We are trying to reduce costs by saving. Therefore, the projected value of the project ($ 2.2 billion) can fluctuate”, - T. Aliyev added.

Notably, on December 19, Heydar Aliyev Baku Oil Refinery of the State Oil Company of Azerbaijan Republic (SOCAR) and Tecnicas Reunidas (Spain) have officially signed an Engineering, Procurement, and Construction (EPC) contract for reconstruction of facilities.

The contract with the company TR provides for reconstruction of existing installations and general economy of the plant.

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

Construction of new facilities for getting diesel fuel that meets the Euro-5 quality standard at the second stage by late 2020 and implementation of relevant reconstruction works;

In final stage, construction and reconstruction of new A-92/95/98 petrol production facilities by 2021 that meet the Euro-5 quality standards.

As a result of work, annual processing capacity of the plant will increase from 6 mln. to 7.5 mln tons, quality indicators of produced gasoline and diesel fuel will meet the Euro-5 standards and the plant will also provide production of A-92/95/98 brands of gasoline. The project envisages the optimization of running costs of Heydar Aliyev Baku Oil Refinery and expulsion of the infrastructure of former "Azərneftyağ" oil refinery.