Azzawiya goes to rebid

28 March 2002

The contract to upgrade the 120,000-barrel-a-day (b/d) Azzawiya refinery has taken a new twist after the client, Azzawiya Refinery Company (ARC), unexpectedly invited two international contractors to submit revised prices on 18 March. Just one, South Korea's LG Engineering, responded to the invitation. The other, Paris-based Technip-Coflexip, declined having already received on 11 February a letter of intent valued at about $250 million for the contract (MEED 8:3:02).

The project calls for the installation of a new continuous catalytic reformer unit, napthta and gas/oil hydrotreaters, an isomerisation unit, sulphur and amine units, tankage, and a 5,000-cubic-metre-a-day desalination plant. France's IFPis the technology licensor. The completion of the upgrade is scheduled for late 2004.

Competition for the Azzawiya contract has been fierce. Contractors have been invited to submit revised proposals on several occasions since bids were first opened in February 2001. The project is part of a $3,500 million programme to revamp and upgrade the country's refinery infrastructure over the next five years (MEED 16:2:01).

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