Sanoat Energetika Guruhi (SEG), Uzbekistan’s largest private oil and gas company, has acquired the formerly state-owned Fergana Oil Refinery (Fergana).
The acquisition follows a competitive tender process as part of Uzbekistan’s state asset privatisation programme. The addition of Fergana complements SEG’s evolution into a vertically integrated oil & gas company, covering upstream and downstream production, from exploration to full cycle processing of high-quality end products.
Shokir Fayzullaev, chief executive officer of SEG, said: “We intend to modernise the Fergana Oil Refinery and double its capacity to two million tonnes of chemical products annually. By September 2023, the plant will produce Euro-5 gasoline and various modern types of oils and other refined products.
“Over the last 20 years, the need to modernise and invest in Fergana has been ignored, with the last modernisation over 30 years ago. Now, as part of the SEG portfolio of companies, we have contracted best-in-class international companies Afton Chemical, Lubrizol (USA), Infineum (England), and Evonik (Germany), amongst others, for a full technical re-equipping of the plant.”
During the period of trust management, investments of $58 million were made to renew the enterprise, including:
- Licensing and engineering agreements with Axens SA (FR).
- Replacement of the Hydrodesulfurization unit, with further new unit development commencing.
- Commencement of Euro-4 and Euro-5 quality diesel fuel production via a modern GDS unit.
- Equipment installed from international suppliers Afton Chemical Corp. (US), Lubrizol Corp. (US), Infineum International Ltd. (UK), Evonik Industries AG (GER)
- IFRS audits introduced.
Future development of the Fergana Oil Refinery will build the plant into a petrochemical complex.
SEG’s priority goal is to support Uzbekistan’s growing economy, and to increase oil production to 1.6 million tonnes by 2030. SEG’s new petrochemical capacity to deep process hydrocarbons will also contribute to Uzbekistan’s industrial development goals.
Another business objective is the export of refined chemical products to the international market. SEG has built a strong customer network interested in Fergana’s advanced chemicals, including the wider CIS region, Europe and the Middle East.
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