Bahrain Petroleum Company (Bapco) has awarded a $4.2bn contract to Tecnicas Reunidas and its joint venture partners Technip and Samsung for the Bapco Modernization Program (BMP).
Located on Bahrain’s eastern coast, the project is being taken up to expand the capacity of the Sitra oil refinery from 267,000 to 360,000 barrels per day, improve energy efficiency, monetise the bottom of the barrel, enhance products slate and meet environmental compliance.
The project, which will be executed on engineering, procurement, construction and commissioning (EPCC) lump sum turnkey basis, is expected to be completed in 2022.
The project includes residue hydrocracking unit, hydrocracker unit, crude distillation unit, hydro desulfurization unit, vacuum distillation unit, hydrogen production unit, saturated gas plant, hydrogen recovery unit, sulphur recovery unit, sour water stripper unit, tail gas treatment unit, amine recovery unit, bulk acid gas removal unit, sulphur handling facilities and sulphur solidification unit.
Tecnicas Reunidas, whose share in the contract value is $1.35bn, will take up detail engineering of some complex units, including the crude unit, vacuum unit, hydrocracker, saturated gas plants 1 and 2, and of other auxiliary facilities.
Tecnicas Reunidas will also participate in the procurement and construction activities for the project.
Bapco, wholly owned by the Government of Bahrain, is involved in the oil industry, including refining, distribution of petroleum products and natural gas, sales and exports of crude oil and refined products.
It owns a 264,000 barrel-a-day refinery, storage facilities, marketing terminal and marine terminal for its petroleum products.
Tecnicas Reunidas is an international engineering and construction company for oil and gas production, refining and petrochemicals and power generation projects and has designed and built over 1,000 industrial plants worldwide in more than 50 countries.
It has executed more than 25 projects in the Middle East, with an aggregate value of €20bn in the last 10 years. It has operations in countries such as Saudi Arabia, Kuwait, Oman, the UAE and Bahrain.