ARC reissues Azzawiyaupgrade

13 January 2006
International contractors have been given until 20 November to submit prequalification documents for the estimated $250 million-300 million engineering, procurement and construction (EPC) contract to upgrade the country's second biggest refinery - the 120,000-barrel-a-day (b/d) Azzawiya refinery, west of Tripoli. Azzawiya Oil Refining Company (ARC) is seeking to shortlist eight international EPC contractors for the project, which aims to boost the refinery's production capacity by 24 per cent.

The project involves the installation of a new continuous catalytic reformer (CCR) unit, naphtha and gas/oil hydrotreaters and an isomerisation unit, as well as increasing the capacity of topping units through the addition of a preflash tower. The naphtha hydrotreater, CCR and light naphtha isomerisation unit will all utilise Institut Francais du Petrole (IFP) technology, as will the deep gas oil hydrotreater, which includes an amine treating section and a sour water stripping section. The sulphur recovery plant will utilise technology from Germany's Lurgi. Project consultant Foster Wheeler Italiana signed a project consultancy agreement with ARC on 26 October.

Paris-based Technip was awarded a letter of intent in February 2002, but later declined to submit revised prices, and the contract was awarded to LG Engineering & Construction of South Korea. When the Korean firm terminated its contract in May 2003, ARC was forced to reissue the contract. Negotiations with Germany's Uhde broke down earlier this year (MEED 11:2:05).

ARC says it is also considering plans for a second phase expansion covering a new residual catalytic cracker unit, methyl tertiary butyl ether (MTBE) facilities and a sulphur treatment plant.

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