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Lukoil Neftochim Burgas refinery and petrochemical complex modernisation project, Bulgaria

23rd September 2011

By: Lindiwe Molekoa

  

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Name and Location
Lukoil Neftochim Burgas refinery and petrochemical complex modernisation project, Burgas, Bulgaria.

Project Description
The project involves the modernisation of the refining complex at the existing Lukoil Neftochim Burgas refinery, which is located on Bulgaria's Black Sea coast. The facility is the biggest in the Balkans and has a capacity to refine 8.8-million tons of crude oil a year.

The plan is to construct a modern facility for deep processing of vacuum residue, with capacity of 2.5-million tons a year. The new facilities will increase the depth of processing from 76% to 90% and will ensure fuel oil production with sulphur content below 1% to meet European requirements.

The facility, with an installed capacity of 170 000 bbl/d, produces various fuel products, such as aviation fuel, ecological diesel fuel and other related products.

Value
The project will require an investment of between $1.5-billion and $2-billion.

Duration
The project is scheduled to be completed in May 2013.

Client
Burgasnefteproekt, a subsidiary of Russia’s Lukoil.

Key Contracts and Suppliers
Technip (front-end engineering design (Feed), as well as lump-sum services contract).

Latest Developments
In January 2011, France’s Technip was awarded a lump-sum services contract valued at €70-million for the first phase of a heavy residue hydrocracking complex to be built at the refinery, in Burgas. The contract followed the successful implementation of the Feed by the company.

The scope of the contract covers the detailed engineering and procurement services for a 2.5-million-ton-a-year residue hydrocracker, as well as amine, sour water stripper and hydrogen production units.

Technip’s operating centre in Rome, Italy, is responsible for the execution of the project.

Meanwhile, the basic design and Feed for the project have been finalised. The detailed engineering of the complex is currently under way. The contracts have been issued, with the manufacture of long-lead equipment in progress and first equipment delivery scheduled to take place in September 2012.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Lukoil Bulgaria, tel +359 2 917 4100, fax +359 2 962 2228 or email office@lukoil.bg.
Technip public relations, Christophe Bélorgeot, tel +33 1 47 78 3992 or
email press@technip.com; or investor relations, Kimberly Stewart,
tel +33 1 47 78 6674 or email kstewart@technip.com.
 

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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