Borouge agrees $1.39bn payment for turnkey contract

09 February 2009
Spain’s TR and Abu Dhabi Polymers Company (Borouge) have signed a final agreement for a $1.39bn payment on a lump sum turnkey contract they agreed in 2007.

In a statement issued on 8 February, Borouge chief executive officer Abdulaziz Abdulla Alhajri said that the conversion from an initially agreed open book estimate has now been concluded.

When originally tendered in 2006, the contract was valued at $1-1.2bn (MEED 9:10:08).

The engineering, procurement, and construction contract covers utilities and offsites. Work includes the construction of infrastructure, instrumentation and the installation of a communications system, and is part of the wider Borouge 2 expansion.

“Upon the completion of Borouge 2 in 2010, Borouge’s production capacity will triple to over 2 million tons of Polyolefins,” Alhajri said in the statement.

“This will enable Borouge to supply its customers with high performance and value added products for an increasingly wide range of applications in all its target markets.”

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