Two contracts signed as part of reconstruction of AzeriKimya's Ethylene-Polyethylene plant - UPDATED

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Baku. 5 November. REPORT.AZ/ 'AzeriKimya' Production Union of the State Oil Company of Azerbaijan Republic (SOCAR) has signed contracts with "Technip Italy S.p.A." and "SOCAR-KBR" JSC on reconstruction of Ethylene-polyethylene plant project.

Report informs, both two contracts were signed by Chairman of Supervisory Board od 'Azerikimya' PU, Mukhtar Babayev, CEO of "Technip Italy S.p.A." Marco Villa and 'SOCAR-KBR' President, Engineering & Construction for the Europe, Eurasia & Africa (EEA) region Jan Egil Braendeland.

The agreement between 'Azerikimya' PU and "Technip Italy S.p.A." is an EPC (Engineering, Procurements, Construction) contract for design of new facilities, equipment and infrastructure, procurement, construction, maintenance, commissioning, testing and preparation for operation. The agreement between 'Azerikimya' PU and "SOCAR-KBR" JSC is a Contractor-PMC contract for project management. 

At the signing ceremony, SOCAR President Rovnag Abdullayev spoke about further reconstruction and modernization works. He said that as part of the measures to be taken existing devices will be modernized, new facilities will be built, and production capacity of "Azerkimya" will be increased. Polypropylene and polyethylene facilities construction of which started in Sumgayit will be provided with raw materials.

SOCAR President also added that demand for these products will be met, an export potential will be increased, strengthening of stable and safe operation of the process and increase in quality of raw materials and finished products will be provided.

Then M. Babayev spoke about new projects in "Azerkimya" PU.

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J. E. Braendeland said as part of the "SOCAR-KBR" contract integrated  "The Joint Project Team" will be created from  Azerikimya" PU experts.

M. Villa said reconstruction projects will continue gradually until 2018-2019.

Taking into account the complexity of the projects, "SOCAR-KBR" which has experience in oil-gas sector in Azerbaijan including exploration, production, works on the processing and transport, engineering, logistics, procurement, construction supervision, project management, contract supervision, inspection services, training, verification of knowledge and expertise of local staff, control over the implementation of the project on schedule, control of contractors and experience in management areas was involved in work as a subcontractor.

Notably, in March 2016, contract for detailed engineering and supply support services was signed with "Technip Italy S.p.a" as part of reconstruction of Ethylene-polyethylene plant.