on the implementation of the investment project "Modernization of the Fergana Oil Refinery"

Name of the project

"Modernization of the Fergana Oil Refinery".

Basis for project implementation    

The project is being implemented on the basis of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated February 7, 2020 No. 67 and the Resolution of the President of the Republic of Uzbekistan dated December 28, 2020 No. PP-4937.

Implementation period  

2020-2023 y.
The total cost of the project    

US $ 389.3 million

Objective of the project    

Processing of 2 million tons of hydrocarbons per year:
  • 560 thousand tons of gasoline AI-92 EURO-5;
  • 64 thousand tons of liquefied petroleum gas;
  • 198 thousand tons of jet fuel Jet A-1 and TS-1;
  • 538 thousand tons of EURO-5 diesel fuel;
  • 175 thousand tons of base and commercial lubricating oils according to API classification group II + / III;
  • 290 thousand tons of construction and road bitumen;
  • 25 thousand tons of other types of oil products;
  • increasing the depth of processing of raw materials by at least 92%;
  • optimization of water and steam supply systems in order to reduce energy costs;
  • reconstruction of existing technological units to ensure stable production of high quality petroleum products;
  • production of pure hydrogen with a concentration of 99.9% to meet the needs of new and existing hydrocatalytic processes;
  • improvement of production and ecological state of the environment;
  • automation of control systems and accounting of raw materials, manufactured products and energy resources.
Information on the work done for the 1st half of 2021

The work started in the 2nd half of 2020 was completed at the beginning of this year, including, Axens (France) completed work on the development of design documentation for licensed Hydrocracking and Isomerization (PDP) units. Amec Foster Wheeler - WOOD (UK) has completed the design of the unlicensed installations and the basic FEED design. In addition, a report was presented on the results of a marketing study of base and commercial oils carried out by Argus Media (Great Britain). Also, the international audit company "KPMG" presented a report on the results of a technical audit of the state of the existing technological installations of the plant.
The feasibility study (TEO) of the project was developed in cooperation with FE LLC "UzLiTi Engineering", and the feasibility study of the project has successfully passed the examination at the Center for Comprehensive Expertise of Projects and Import Contracts under the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan. At present, the feasibility study has been coordinated with the relevant ministries and departments and submitted for approval to the Cabinet of Ministers of the Republic of Uzbekistan.

A phased implementation of work is underway to develop a working project, supply equipment and materials and perform pre-construction work, including:
  • Mobilization of personnel and equipment of the general contractor, construction of temporary buildings and structures;
  • Dismantling of equipment at the selected construction site for a new Isomerization unit;
  • Work has begun on engineering surveys at construction sites ;
  • Within the framework of contracts concluded with design institutes PJSC "Omskneftekhimproekt" and FE LLC "UzLiTi Engineering" work is underway to develop working documentation, providing for the construction of 5 new and reconstruction of 6 existing technological units, construction of 36 new tanks , automation of the processes of loading and unloading, processing and storage of raw materials and oil products, in addition, for the construction of a new central control panel and a modern unified central laboratory of the plant - the total progress achieved is more than 17%;
  • A contract was signed with KONAR JSC for the production and supply of 36 tanks;
  • A tender was held to select suppliers for the manufacture of 20 types of equipment with a long production time and 96 types of other technological equipment for new installations;
  • On a contractual basis, world famous Chinese, American and Italian companies were involved in the supply of a reactor, furnace and adsorbers for the projected hydrocracking and hydrogen production units;
  • Under the contract concluded with the Italian company MACCHI ASSEMBLING YARD MARGHERA, 4 high and medium pressure steam boilers are being manufactured;
  • Based on the results of tenders, a contractor was selected for the supply of equipment for automating the processes of loading and unloading, processing and storage of raw materials and petroleum products;
  • A contractor was hired for the alienation of land plots for the construction and development of design documentation for a new external gas pipeline with a length of 12 km to meet the needs of new and existing production facilities with natural gas.
  • In order to attract foreign direct investment and loans to finance the investment project, negotiations are underway with international commercial banks.
  • A new modern catalyst purchased from the French company Axens was loaded into a gas oil hydrodesulfurization unit and serial production of commercial diesel fuel of Euro-4 class was launched;
According to the roadmap to produce new types of oils of group-I according to the API classification, only five types of oils (motor, hydraulic and transmission) have been developed using additives purchased from the Chinese companies Bett Chemical and Xinxiang Richfull, which are being tested in industrial conditions at consumer facilities. To date, positive results have been obtained for two types of oils, for which certificates of conformity for serial production will be obtained.

Agreements have been reached with OOO Gazpromneft-Lubricants on the development at the plant of the production of modern motor and industrial oils packaged in various containers under well-known world brands. The representatives of the parties directly got acquainted with the production facilities of the Fergana Oil Refinery and the Omsk Oil Refinery. Currently, the process of establishing a joint venture is underway.

To date, more than 15.4 million US dollars have been spent within the framework of the project.

Action plan for the implementation of the project in the 2nd half of 2021

1. Approval of the feasibility study of the project by the decree of the Government of the Republic of Uzbekistan;
2. Attracting foreign direct investment, loans from international and local financial institutions for the implementation of the project;
3. Coordination and approval in the Cabinet of Ministers of the Republic of Uzbekistan of the draft Resolution on the re-approval of the existing production capacities of the plant and the removal of unused assets from the balance sheet in order to optimize operating costs;
4. Preparation of construction sites and commencement of general construction works;
5. Complete work on placing orders for the supply of equipment with a long production time;
6. Purchase of necessary additives for serial production of modern new types of Group I oils;
7. Accelerate the development of working documentation for new and reconstructed facilities;
8. Conducting logistic research for the delivery of equipment to the construction site;
9. Completion of construction of temporary buildings and structures;
10. Phased delivery of materials and equipment to the construction site for the construction of new steam boiler house and tanks.

In total, from the beginning of the year to spend up to 42 million US dollars.