European Bank for Reconstruction and Development has agreed to help finance two major downstream projects in the former Soviet Union.
EBRD agreed to help finance a major revamp of Uzbekistan's Fergana refinery. Goal is to enable state-owned oil and gas firm Uzbekneftegas to process high-sulfur domestic crude and improve the plant's environmental and safety record. The total EBRD finance package will come in the form of a $90 million loan. Total project cost is put at $210.7 million.
Plans call for installation of a desulfurization unit and unspecified conversion facilities, while undertaking infrastructure, environmental, and safety operations improvements. EBRD reckons the project will help accelerate market reforms and privatization in Uzbekistan's petroleum industry.
Meantime, EBRD agreed to provide $9.4 million in financing for construction and operation of a 100,000 metric ton/year lube oil blending and packaging plant at Baku, Azerbaijan, to produce a range of lubricants for world markets. The plant will be managed by Atoil, a joint venture of Turkey's Altintas Chemical Industry & Trade Co. and Azeri state-owned Azerneftyag Baku Oil Refinery. Total project cost is $26.9 million.
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