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.
NOTE: Técnicas Reunidas is an international contractor company. Established in 1960, Lummus Española acquired Técnicas Reunidas in 1972 and started to operate as Técnicas Reunidas, S.A.. TR is listed among leading engineering and construction companies in oil and gas sector. Areas of activity include engineering, construction, and design of industrial facilities, petrochemical industry, renewable energy, fertiliser and inorganic chemistry, environmental protection, metallurgy, etc. The company operates in Saudi Arabia, Kuwait, Oman, Greece, Mexico, Turkey, Russia, France, the Netherlands, and Vietnam. International projects account for 70% of the company's annual revenues. The company has already designed and built more than 1,000 industrial enterprises.
Headquartered in Houston, Texas, KBR is one of the world's leading companies in engineering, procurement, construction, and various services. KBR, which has become one of the leading providers of energy, hydrocarbon, electricity, industry, and civil infrastructure, minerals, state agencies and commercial sectors, has been operating since 1994 as the first international engineering contractor in Azerbaijan. Ever since, the company provides various services on “Azeri-Chirag-Gunashli” and “Shah Daniz” PSAs. An agreement on establishment of SOCAR-KBR engineering JV between KBR and SOCAR was signed on March 18, 2015, in Baku. The new JV is engaged in engineering (front-end engineering), project management and construction services in exploration and production, refining, storage and transportation, refining and sale of oil and oil products.
SOCAR Energy Holdings (SOCAR's Swiss subsidiary) is announcing its entry into the Austrian retail fuel market by taking over petrol station operator A1, as well as mineral oil trading company Pronto Oil. Reinvesting a part of its revenues in Switzerland in order to boost its’ downstream projects, SOCAR Energy Holdings are creating synergies and expanding previous projects.
The primary goal is to diversify the portfolio, discover new markets and generate higher revenues.
Several initiatives in this sense have been ongoing for some time, focusing mostly on partnering mid-sized family companies in Switzerland, as well as in neighboring countries. In some cases, these development initiatives took the form of dealer expansions, supply relationships, joint-ventures, card acceptance or other partnership deals. The acquisition of a well-known family business network A1 and Pronto Oil was the logical next step of this expansion strategy.
Playing a leading role in the petrol station market in the state of Styria, A1’s network comprises a total of 82 petrol stations with accompanying shops and has a presence across most of Austria. The company employs around 150 staff. SOCAR is also taking over mineral oil trader Pronto Oil Mineralölhandels GmbH, which is headquartered in Graz.
SOCAR Energy Austria was established to operate A1 network and Pronto Oil Mineralölhandels GmbH. SOCAR Energy Austria will continue to employ the members of staff of A1 network and Pronto Oil Mineralölhandels GmbH. Given the strong brand recognition of A1 in the Austrian market, SOCAR plans to continue operating the petrol stations under the A1 brand.
Edgar Bachmann, CEO of SOCAR Energy Holdings, is pleased with the move: “The acquisition of A1 will allow SOCAR to expand its business activities into Austria and continue to build on its position as a leading energy company.”
Gerhard Annawitt, former owner of A1-Tankstellenbetrieb and Pronto Oil, explains: “SOCAR is a perfect match both for A1 and Pronto Oil. By selling my company, I am passing a quality-conscious and innovative company into safe hands, where I know it will continue to be run in the same spirit.”
It should be noted that SOCAR entered the Swiss oil market five years ago with a new approach that included retail sales of high quality goods and personalised services meeting the needs of local customers. Today, SOCAR has built a reputation and enjoys brand recognition among more than 63% of consumers in Switzerland. SOCAR has expanded its dealer activities in Switzerland by establishing partnerships with 15 dealers with 5-10 dealers expected to join the SOCAR brand next year.
Austria is a strategic market for SOCAR, with neighbouring Switzerland sharing the same culture. The A1 network is known as a highly appreciated brand name in many parts of Austria.
Joint Venture will provide excellent training and educational services based on contemporary programmes to employees working on international energy projects
On 5th December, Petrofac and the State Oil Company of the Republic of Azerbaijan (SOCAR) signed a Shareholders Agreement at SOCAR Tower establishing a joint venture for the utilisation of commercial opportunities more efficiently in training and educational areas of country’s oil&gas;, petrochemical industries. Under the Agreement, SOCAR’s stake has been determined at 51% and Petrofac’s at 49%). The Shareholders Agreement was signed by SOCAR’s President Rovnag Abdullayev and Petrofac’s head of International Engineering and Production Training Services, Karim Osseiran.
The aim of both companies in creation of the joint venture is to use the resources in supporting the knowledge and skills of oil workers. New Joint Venture will provide tested, more advanced and modern training and educational services for the workers of Azerbaijan’s energy sector and those engaged in energy projects of other countries.
It should be noted that in recent years, SOCAR’s Training Educational and Certification Department organized trainings in accordance with standards of world renowned organisations, such as OPITO, IOSH etc. In addition to installation of high quality equipment necessary for carrying out trainings, the range of trainings offered by SOCAR in recent years is ever increasing.
Petrofac will contribute to the activities of the joint venture with its extensive experience of designing, building and operating unique training facilities, which combine immersive technical training techniques and digital technology. In order to improve the links between academic education and production, the company will also provide additional opportunities for the development of knowledge, skills and capabilities of staff operating in HSSE, engineering, construction, operations, maintenance and drilling spheres.
In organizing the trainings, the facilities of SOCAR’s Training Educational and Certification Department will be used. SOCAR is focused on driving nationalisation initiatives and its experience of establishing and operating energy-related facilities, including training centres, will be fully utilised within the Joint Venture. SOCAR will realise its competitive advantage by having the opportunity to provide training and certification services to personnel of foreign companies, thus utilising the commercial potential of training centers at its disposal. Petrofac in its turn will be able to establish a more sustainable and efficient business in Azerbaijan through the joint venture.
Karim Osseiran, Global Head of Training Services, Petrofac Engineering and Production Services, speaking at the signing ceremony said: “We are delighted SOCAR has chosen to partner with us. Through our joint venture we are combining our industry credentials, local knowledge and depth of capabilities. This will enable us to deliver a step-change in workforce training and competence assurance in support of SOCAR’s nationalisation agenda.”
Speaking at the ceremony, SOCAR’s Vice President Khalik Mammadov stated: This is the next step in transforming oil capital into human capital. We believe establishing a partnership with Petrofac, world known for the provision of training and development services, will be successful for SOCAR and of benefit to the oil and gas industry in Azerbaijan. SOCAR Petrofac will foster a sustainable approach to meeting the demand of the technical workforce in Azerbaijan and the wider region, through supporting local content and nationalisation goals.”
Petrofac is a leading international service provider to the oil and gas production and processing industry. Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac’s range of services meets its clients’ needs across the full life cycle of oil and gas assets.
With around 13,500 employees, Petrofac operates out of seven strategically located operational centres, in Aberdeen, Sharjah, Abu Dhabi, Woking, Chennai, Mumbai and Kuala Lumpur and has a further 24 offices worldwide. For more than 12 years (2004 - 2016) Petrofac supported the achievement of the nationalisation goals of BP in Azerbaijan. In this period, the Company continues its projects for designing, building and operating practical safety and technical training facilities throughout the Middle East, Russia and Malaysia.
SOCAR’s Training Educational and Certification Department obtained accreditation from Britain’s Oil Industry Marine Training Organisation (OPITO) on training centre on safety of human lives at sea regarding trainings for foundations of safety at sea and preparations during emergency situations (BOSIET); training on rescue of drowning helicopters (HUET) and repetitive training on actions during emergency situations at sea (FOET). As such, the Department became one of the few members of OPITO network as service provider in the Caspian Region. Training Educational and Certification Department in accordance with set Action Plan, organises trainings for staff working at oil&gas; platforms and rigs at sea. Training Educational and Certification Department also holds license from Great Britain’s HSE Institute (IOSH) on “Safe Operation”.