Bids due for Arak refinery

02 September 2005
National Iranian Oil Engineering Company (NIOEC) has invited contractors to submit bids by 3 October for the engineering, procurement and construction (EPC) contract covering the Shahazand Arak refinery expansion project. Prospective foreign bidders, which will team up with local contractors, include Hyundai Engineering & Construction Companyof South Korea, Canada's SNC Lavalin, Engineers India (EIL)and Toyo Engineeringand Chiyoda Corporation,both ofJapan(MEED 27:5:05).

Estimated to be worth $1,600 million, the contract will involve increasing capacity to 250,000 barrels a day (b/d) from 150,000 b/d. The 26-month contract will also entail the supply and installation of an 80,000-b/d crude distillation unit and a new 28,100-b/d merox unit, as well as hydrotreater units.

Bidders are likely to be requested to team up with an offtaker for the product, with financing to be arranged on a buyback basis. Japan's JGC Corporationwith Tomen Corporation, also of Japan, has carried out the front-end engineering and design (FEED) package.

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