KBR, Inc. (Houston; www.kbr.com) today announced its Socar-KBR LLC joint venture (JV) was awarded a significant project management consultancy (PMC) contract for the Heydar Aliyev Baku oil refinery modernization project in Azerbaijan.
This award marks the first major award to the JV, Socar-KBR, since its inception in mid-2015. Socar-KBR was created to provide design, engineering, technical, consultancy, procurement, construction supervision and project management services for all brownfield and greenfield projects across the upstream, midstream and downstream oil and gas sectors, in the Azerbaijan–Georgia–Turkey (AGT) region. This company was formed to help Azerbaijan’s ambition for creating a world-class Azerbaijan based engineering company.
Socar-KBR LLC will build upon KBR’s long-term project experience in Azerbaijan to perform project management services from its established offices in Baku for the Heydar Aliyev Baku oil refinery modernization project.
The overall refinery capacity will be increased from 6 to 7.5 million ton/yr. The catalytic cracking unit capacity will be increased from 2 to 2.5 million ton/yr, and Euro 5 standards will be established for all refined products. The modernization of the Heydar Aliyev Baku oil refinery will begin immediately and will be completed by late 2018, with an estimated capital cost of $1 billion for the total project.
The value of the PMC contract is undisclosed and will be booked into the backlog of unfilled orders for KBR’s Engineering & Construction business segment in Q1 of 2016.