Technip Italy S.p.A has announced the finalisation of a joint agreement with the Egyptian General Petroleum Corporation (EGPC) and Assiut Oil Refining Company (ASORC) for the modernisation project of the Assiut refinery, Egypt. The facility is designed to refine the bottom of the barrel in the frame of long standing cooperation between Italian and Egyptian Governments and other companies. The investment is expected to total US$1.5 billion and aims to maximise diesel production. The work will introduce the most modern refinery technologies in Upper Egypt and will hopefully satisfy the growing local demand for petroleum products.
According to the agreement, Technip will start activities for the project promptly, as well as provide support to ensure project financing. SACE is ready to evaluate a possible intervention to support the project. In due course, Technip will take responsibility for the project’s EPC phase.
Technip and SACE have also announced the finalisation of a joint agreement with Midor (Middle East Oil Refiery) for a project to modernise and expand the MIDOR refinery near Alexandria, Egypt. This is in the frame of a long standing cooperation between the Italian and Egyptian Governments and other companies. The investment is totalling US$1.4 billion and aims to improve the production quality of the plant which is considered to be the most advanced in Africa. The work will increase refining capacity by 60 000 bpd.
According to the agreement, SACE is committing to launch the evaluation process in order to ensure an export credit facility to support the project. Technip will in parallel start the activities on the project. In due course, Technip will take over responsibility for the EPC phase of the project.
Edited from press releases by Claira Lloyd
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