Kurdish conglomerate Qaiwan Group, with operations spanning oil refining and trading, power and energy, real estate and hospitality industries, has announced its intention to invite EPC bids in March this year, in relation to its Bazian Refinery Expansion Phase 3 (BREP3) project. This will follow the completion of BREP3’s Front End Engineering Design (FEED), currently in progress by Technip (France).
Qaiwan Group’s BREP3 project will increase Bazian refining capacity from 34,000 barrels per stream day (BPSD) to a total capacity of 84,000 BPSD, by adding 50,000 BPSD of distillation capacity and gasoline manufacturing facilities.
It is targeted to award the EPC contract in the third quarter of 2014. BREP3’s conceptual design was completed by Technip France in late 2012. Major milestones for the BREP3 contract will include the completion of distillation facilities and supporting utilities by the fourth quarter 2016, and the rest of the facilities by last quarter of 2017.
The BREP3 project includes new processing units; including a 50,000 BPSD Crude Distillation Unit, a 33,500 BPSD Naphtha Hydrotreating Unit, a 22,500 BPSD Continuous Catalytic Reformer, a 10,500 BPSD Isomerisation Unit, and a 13,500 BSPD Kerosene Hydrotreating Unit. Amine Regeneration, Sulphur Recovery unit and waste water treatment unit will also be included in the project, with supporting off-sites and utilities on a grass roots site adjacent to the existing refinery.
“We are pleased to announce the successful completion of the FEED stage of our Bazian Refinery Expansion Phase 3, and look forward to launching its Engineering, Procurement and Construction tender. The pace of progress at Bazian Refinery bears testimony to our commitment to deliver one of the largest oil refineries in Kurdistan, on time and to budget,” said Saad Hasan, CEO of Qaiwan Group.
“We continue to invest for the future, in line with our commitment to grow Kurdistan’s oil and gas industry. We pride ourselves on our breadth of experience, dedication to excellence and track record in the region.”
In addition to its BREP3 project, Qaiwan Group is in the design stage of a 110 kilometre pipeline, linking the refinery directly to oil fields, and capable of carrying 125,000 BPD of crude oil. The pipeline will enable the refinery to function at optimum efficiency, as its operations grow. Its basic design, being undertaken by Technip Germany, will be completed by the end of March this year.
Located 25 kilometres from Sulimaniya, the Bazian Refinery was originally established in 2009 with two identical 10,000 BPSD crude distillation units designed for crudes in the 32 to 36 API range. Through its subsidiary, Bezhan Pet Company for Oil Services Ltd (BPC), Qaiwan Group was commissioned in 2009 to complete, rehabilitate, construct, develop, finance and operate the 20,000 bpd refinery, which at that time had an actual capacity of 12,000 bpd when processing 47 API crude oil. The first phase of expansion was completed in September 2010. BPC was then able to increase the capacity, through a series of enhancements, to eventually reach 34,000 bpd in August 2012.
Today, the Bazian Refinery produces gasoline, kerosene and diesel for the consumer market, and naphtha and fuel oil for the industrial market.
