Company announces services contract for Russian oil refinery unit

4th September 2015

  

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Engineering contractor Maire Tecnimont SpA announced in June that its main subsidiary, Tecnimont, in cooperation with Russian partners, had been awarded an engineering, procurement and construction management services contract by Russian oil producer JSC Gazprom Neft for the execution of the Combined Oil Refinery Unit (CORU) project, to be implemented inside the existing Moscow refinery, in the Russian Federation.

Gazprom Neft is the third-largest oil company in Russia in terms of refining volume and the fourth-largest in terms of production. Gazprom Neft Group consists of more than 70 production, refining and sales subsidiaries globally and is majority-owned by Gazprom.

The overall contract value to Tecnimont is about €480-million and will be settled on a multicurrency basis of euros and Russian rubles, the latter totalling about 30% of the total amount. The engineering and procurement portion of the contract will be driven under a lump-sum scheme, while the construction management side of the contract will be carried out under a reimbursable scheme.

The scope of the project encompasses the implementation of a new hydroskimming section with a set of process refining units, part of which are licensed by a major refining technology provider. The project will be located in the existing Moscow refinery perimeter and will be mainly aimed at producing petrol and diesel distillates under Euro 5 grade specifications.

Tecnimont’s scope also includes ancillary and new utilities units. A significant portion of materials and subcontracting activities will be supplied by local partners within the Russian Federation. Tecnimont will capitalise on its long-standing presence in the Russian Federation to procure a major portion of bulk materials in Russia.

Completion is expected within 36 months (ready for start-up) from the letter of intent, which has been signed and represents the commencement date of the contract.

The project is a capital milestone for Maire Tecnimont Group’s Oil and Gas business as it represents a major award in downstream refining, after the recent achievements in crude oil and gas treatment, both in terms of completed and awarded projects in the Middle East. This important step confirms the long-lasting and outstanding experience of the group in the Russian Federation, where Tecnimont’s brand has been well known since the 1930s.

“This contract represents an outstanding opportunity for Maire Tecnimont Group to start a long-term collaboration with Gazprom Neft, one of the leading players in the refining market globally, leveraging Tecnimont's very well established presence in the Russian Federation’s promising downstream business environment. We are, therefore, truly honoured to expand our refining references to such a prestigious world-class client with this flagship project in Moscow,” says Maire Tecnimont CEO Pierroberto Folgiero.

Maire Tecnimont
Maire Tecnimont is listed on the Milan stock exchange. It heads an industrial group (Maire Tecnimont Group) that leads the international engineering and construction, technology and licensing, and energy business development and ventures markets, with specific competences in plants, particularly in the hydrocarbons segment (oil and gas, petrochemicals and fertilisers), as well as in power generation and infrastructure. The Maire Tecnimont Group operates in about 30 different countries, numbering around 45 operative companies and a workforce of about 4 200 employees, of whom over half work abroad.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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