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| An actual view of an oil refinery plant operated by Uzbekistan's state-run UNG is seen in this undated file photo. Courtesy of SK E&C |
By Kim Yoo-chul
SK Engineering and Construction reached an agreement with a state oil gas company in Uzbekistan under which the South Korean company will handle the outlining of the planned modernization of an oil refinery there, SK said, Tuesday.
The estimated monetary value of the deal is about $7.2 million. Under the contract, SK E&C plans to upgrade an oil refinery plant operated by Uzbekneftegaz (UNG) helping it produce more value-added light petroleum. "Once the relevant processes are completed, the plant's flagship gasoline and diesel products will meet strengthened Euro V requirements," SK E&C said in a statement.
The oil refinery plant is located in the Bukhara region, about 440 kilometers southwest of the Uzbekistan capital of Tashkent, and is enabled to produce 50,000 barrels of crude oil daily, said the release. The agreement came a quarter after the SK unit signed a memorandum of understanding with UNG for the project.
Because of the spread of COVID-19, the official signing ceremony was held online. Established in 1992, the state-run UNG has 120,000 employees and is the largest company in Uzbekistan. Currently, it operates two oil refiners and the Uzbekistan government is supporting moves by the UNG for facility expansion by expanding the use of eco-friendly production processes.
"SK E&C will soon begin conducting a front-end engineering design (FEED) process. We will check which SK-owned technology will be applicable to the plant and review others considered the most crucial to move forward with the modernization process," SK said.
