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SOCAR moves on Oil & Gas Processing and Petrochemical Complex (OGPC) project

KBR wins Azeri OGPC Gas Processing Plant PMC

The State Oil Company of Azerbaijan (SOCAR) selected the Houston-based engineering company KBR to provide project management consultancy (PMC) for the front end engineering and design (FEED) of the gas processing plant (GPP) within its Oil & Gas Processing and Petrochemical Complex (OGPC) project in Azerbaijan.

In April 2012, SOCAR presented in Baku this $17 billion capital expenditure downstream project.

Socar_Azerbaijan_OGPC_mapTo be located on 1,500 hectares 60 kilometers from Baku in the Garadagh district of Baku, the so called OGPC project should include a refinery and a gas processing plant and a petrochemical complex.

In March 2013, SOCAR is sending the signal to move on with this project.

This decision comes in parallel to major decisions made by SOCAR to develop multi-billion oil and gas projects on the upstream side.

In May 2012, BP and SOCAR decided to commence the FEED for the $25 billion capital expenditure Shah Deniz phase 2 project.

In January 2013, Statoil and SOCAR opened negotiations to share interests in the giant Umid gas field together with the Babek and Mashal satellite fields in the Azeri Caspian Sea.

In March 2013, SOCAR and ConocoPhillips started hearing program in 14 Azeri regions to get the permit of 2D seismic exploration onshore campaign

Socar_Baku_OGPC_ProjectThe selection of the routes in competition for the export pipelines to Europe should come on second half 2013.

With the upstream and midstreampieces well engaged, SOCAR had to align the downstream part to complete its energy giant puzzle.

Since Azerbaijan is one of the few countries in the world with significant reserves of oil as well as natural gas, the development of downstream projects requires balanced capital expenditure between gas processing facilities and crude oil refining.

Then this balanced sourcing between natural gas and crude oil gives the opportunity to SOCAR to optimize the petrochemical chain in benefiting from the both sources of supply as feedstock. 

Fluor selects technology licensors for SOCAR OGPC

Actually estimated to require $17 billion capital expenditure, the  Oil & Gas Processing and Petrochemical Complex (OGPC) in Baku should include a:

 – Gas processing plant (GPP) to treat the raw natural gas coming from ACG, Shah Deniz phase 2 or Umid and separate it into  ethane, propane, butane, methane

 – Ethane cracker to produce olefins and polyolefins

 – Crude oil refinery

In this context, SOCAR is starting to award the key contracts for this OGPC project.

SOCAR selected KBR to provide theproject management consultancy (PMC) services for the FEED phase of the gas processing plant.

KBR has a long standing experience of working in Azerbaijan and cooperating with SOCAR.

The PMC services will be provided by KBR local office in Baku, Azerbaijan.

The FEED work will be supported from KBR London Office in UK.

The project feasibility study was made by Technip, Foster Wheeler, and UOP.

From their conceptual study, the SOCAR defined the capacity of its OGPC project based on:

 – 10 to 12 billion cm/y for the gas processing plant

KBR_Azerbaijan_Gas Processing_Plant_OGPC_Project – 2 million t/y for the ethylene cracker

 – 670 000 t/y polyethylene (PE) unit

 – 550 000 t/y polypropylene (PP) unit

 – 200,000 b/d (10 million t/y) refinery including 20 processing units

With this OGCP project, SOCAR is intending to supply the local market with the refined products to cover the increase of the domestic consumption in transportation fuels, while the natural gas and the petrochemical products should be exported.

KBR is expecting the FEED work of the gas processing plant to be completed at the end of 2013, so that SOCAR should be able to start commercial operations with the OGPC project in 2020.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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