Six price refinery upgrade

25 June 2004
Six local companies submitted bids by 12 June for the 45,000-barrel-a-day (b/d) expansion of capacity at Bandar Abbas refinery. On another refinery project - the Tehran and Tabriz upgrade for the Caspian Republics Oil Swap (CROS) scheme - most of the bidders have decided not to participate unless it is retendered as a straight engineering, procurement and construction (EPC) contract (MEED 28:5:04).

The estimated $70 million Bandar Abbas EPC package will involve the expansion of two trains at the refinery to capacity of 160,000 b/d from 116,000 b/d. The client is National Iranian Oil Refining & Distribution Company (NIORDC).

The bidders are: Iran International Engineering Company (IRITEC), Petrochemical Industries Design & Engineering Company (PIDEC), Sakhtar-e-Farda, Sazeh Consult, Namvaran Consulting Engineersand Tehran Jonoob.

The work, for which Italy's Snamprogetticarried out the front-end engineering and design (FEED), will pave the way for a much bigger expansion at the refinery. However, if a condensates refinery planned at Assaluyeh goes ahead, NIORDC may decide to shelve the additional Bandar Abbas upgrade.

The bid deadline for the Tehran and Tabriz refineries has been extended to August, but bidders say they are reluctant to submit offers without a reliable partner to carry out the oil swap part of the contract.

The five prequalifiers for the project are: the UK's Petrofac; Engineers India (EIL); South Korea's Samsung Engineering International; Namvaran, with Spain's Tecnicas Reunidas; South Korea's Daelim Industrial Company, with the local Oil Industry Investment; and South Korea's Daewoo Engineering & Construction, with the local Naftgostar.

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