Technip to modernize, expand two Egypt refineries
7/27/2015 12:00:00 AM
Technip on Monday announced two separate deals to modernize and expand refineries in Egypt.
In the first deal, Technip announced the finalization of a joint agreement with Egyptian General Petroleum Corp. (EGPC) and Assiut Oil Refining Co.(ASORC) for the modernization project of the Assiut refinery in Upper Egypt.
The project is designed to refine the “bottom of the barrel” via a long-standing cooperation between the Italian and Egyptian governments and companies, especially in the oil and gas sector.
The investment has an estimated total value of $1.5 billion. The deal aims at maximizing diesel production and will introduce the most modern refinery technologies in Upper Egypt to satisfy growing local demand for petroleum products.
According to the agreement, Technip will start activities for the project, as well as providing support to ensure project financing.
In due course, Technip will take responsibility for the EPC phase of the Assiut project.
Likewise, Technip and SACE also announced the finalization of a joint agreement with Midor (Middle East Oil Refinery) for a project to modernize and expand the MIDOR refinery near Alexandria, Egypt.
That investment has an estimated total value of $1.4 billion and aims at improving the production quality of the plant, considered the most advanced of the African continent, by increasing its refining capacity from 100,000 to 160,000 bpd of crude oil.
According to the agreement, SACE has committed to launch the evaluation process in order to ensure an export credit facility to support the project. In parallel, Technip will start activities on the project.
In due course, Technip says it will take responsibility for the EPC phase of the MIDOR project.
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