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Technip will eventually take charge of engineering, procurement and construction (EPC)
27/07/2015
Technip wins Egypt refinery upgrade contracts
Expansion and modernisation at Assiut and MIDOR
Helen Tunnicliffe
TECHNIP has finalised two agreements, worth US$2.9bn, to upgrade two refineries in Egypt, the MIDOR refinery near Alexandria, and the Assiut refinery.
The MIDOR agreement was signed with Italian export credit and assurance agency SACE and refinery owner Middle East Oil Refinery (Midor). The refinery is already considered the most advanced in Africa, but the new US$1.4bn upgrade will improve production quality and increase its capacity from 100,000 bbl/d to 160,000 bbl/d. SACE will support the project with an export credit facility.
Technip signed the US$1.5bn agreement for the Assiut refinery with the Egyptian General Petroleum Corporation (EGPC) and Assiut Oil Refining Company (ASORC). The upgrade to the refinery will see it able to “refine the bottom of the barrel” and will maximise diesel production to meet growing local demands.
Technip will eventually take charge of engineering, procurement and construction (EPC) work on both projects. Initial work is expected to start shortly.
The Italian and Egyptian governments and companies in the two countries have a long history of cooperation in the oil and gas sector. Both deals were signed during a visit to Italy by members of the Egyptian government. Those present at the signings included representatives from the companies involved, the Egyptian prime minister Ibrahim Mahlab, Italian prime minister Matteo Renzi, Egyptian minister of petroleum and mineral resources Sherif Ismail and Italian deputy minister of economic development Carlo Calenda.
