FRENCH COMPANIES LEAD THE WAY IN FSU REFINING PROJECTS
French companies are setting the pace for foreign involvement in the former Soviet Union (FSU) refining sector.
France's Technip and Uzbekistan's Uzbekneftegas signed an agreement Oct. 28 appointing Technip general contractor for construction of a 100,000 b/d refinery at Bukhara, Uzbekistan.
The agreement took form in the context of a financial cooperation agreement signed the same day between Bank of Uzbekistan and the French banking group Credit Commercial de France (CCF) that cited the project among other banking and financial arrangements. CCF is responsible for securing financing for the refinery.
On a visit to Paris shortly thereafter, Uzbekistan President Islam Karimov deposited a large amount of gold with CCF as a guarantee for investors and signed with the French government, an agreement covering mutual protection and encouragement of investments. Both are strong signs the refinery project will get off the ground.
In addition, a joint venture of Total and Marc Rich Associates, Geneva, was formed to participate in modernization and production improvement of refineries in the FSU.
The Total-Marc Rich combine has undertaken two series of projects. It has completed wastewater treatment projects at the 160,000 b/d Volgograd refinery, the Ukhta refinery in the Komi republic, and the Baku refinery in Azerbaijan.
It also is undertaking general revamps to improve utilization rates, reliability and energy conservation as well as bring environmental performance up to western refineries' standards at the Volgograd refinery and the 480,000 b/d Chansk refinery in Ukraine. All the measures are designed to make the most of existing capacities.
Total said efforts to significantly improve product quality at the refineries are "still a long way off." The joint venture will continue to monitor refinery operations after the projects are complete.
In addition, French consulting firm Beicip-Franlab expects to complete in January 1994 its update of a comprehensive survey of FSU refining it completed last year (OGJ, Dec. 1, 1992, p. 23).
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