Shaw Group Secures Contract for Grassroot Adana Refinery in Turkey

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Researched by Industrial Info Resources (Sugar Land, Texas)--Technology, engineering and maintenance company The Shaw Group Incorporated (NYSE:SHAW) (Baton Rouge, Louisiana) has secured a project management consultancy (PMC) contract from Dogu Akdeniz Petrokimya ve Rafineri Sanayi ve Ticaret AS (DAPRAS), a special-purpose company set up by Turkish energy company Çalik Enerji AS (Ankara, Turkey). The contract involves DAPRAS' grassroot refinery presently under construction at Yumurtalik in the southern Turkish province of Adana. The province is in the Ceyhan region on the eastern Mediterranean coast. Shaw's scope of work includes the pre-front-end engineering design (pre-FEED) development work for 14 process units, offsites, marine facilities and utilities. The refinery is scheduled to be operational in 2014.

The refinery will have a crude oil processing capacity of 212,000 barrels per day and will incorporate state-of-the-art technologies to operate at high conversion ratios. The facility will be a zero-residue refinery and will enable the rapid development of petrochemical and other downstream units in the region. Çalik Enerji plans to build one of the most advanced, flexible and efficient refineries in the Mediterranean region.

The crude oil will come from several sources, including the Caspian Sea region, Iraq and Russia. Crude will be transported to the refinery by the 550-kilometer Samsun-Adana/Ceyhan Crude Oil Pipeline. Refined products will be targeted at the domestic and Mediterranean markets. Çalik Enerji began the pipeline project in 2007 to help reduce oil tanker traffic in the Turkish Straits and provide a bypass route to crude from Russia and Kazakhstan. The project will reduce the social and environmental risks of oil tanker traffic in the straits, and allow the Ceyhan region to become an important crude oil hub.

Lou Pucher, the president of Shaw's Energy & Chemicals Group, expressed pleasure about obtaining the contract and said that it would be one of the most prestigious of the 50 such partnerships that The Shaw Group has worked on in Turkey. "Forty years ago, we provided our proprietary technology and engineering for the first ethylene plant in Yarimca, and since that time, we have completed more than 50 projects for the petrochemical, power and refining industries in Turkey," said Pucher in a company press release.

The commercial value of the contract has not been disclosed and will be included in Shaw's order book for the fourth quarter of fiscal year 2010. Saim Dinç, the general manager of Çalik Energy, said that the refinery would employ about 7,000 workers during the construction phase and about 1,500 people when refinery operations commence.

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