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Egypt,Italy : TECHNIP inks two agreements worth US$2.9 billion with EGYPT to upgrade refineries
Publish Date : 29-Jul-2015
TECHNIP has inked two agreements, worth US$2.9bn, for upgrading two refineries in Egypt, the MIDOR refinery near Alexandria, and the Assiut refinery.
Signing of the MIDOR agreement was done with Italian export credit and assurance agency SACE and refinery owner Middle East Oil Refinery (Midor). The new US$1.4bn upgrade of the refinery will improve production quality along with expanding its capacity from 100,000 bbl/d to 160,000 bbl/d. SACE will be supporting the project with an export credit facility.
For the Assiut refinery, Technip has signed the US$1.5bn agreement with the Egyptian General Petroleum Corporation (EGPC) and Assiut Oil Refining Company (ASORC). Following this upgrade, the refinery will be able to “refine the bottom of the barrel†and will maximise diesel production to meet growing local demands. Technip will be later assuming charge of engineering, procurement and construction (EPC) work on both projects. Commencement of initial work is expected soon.
Signing of both deals were done during a visit of members of the Egyptian government to Italy. The signing ceremony was attended by representatives from the companies involved, the Egyptian prime minister Ibrahim Mahlab, Italian prime minister Matteo Renzi, Egyptian minister of petroleum and mineral resources Sherif Ismail and Italian deputy minister of economic development Carlo Calenda.
