SK E&C clinches oil refinery modernization deal in Uzbekistan

SK Engineering & Construction will modernize an oil refinery in Uzbekistan to enhance the quality of gasoline, diesel and lube oil products there, the firm said Monday.

SK E&C clinched a $600 million deal with Uzbekistan’s state-run oil and gas corporation UNG to modernize Bukhara Oil Refinery, located 437 kilometers southwest of the capital city of Tashkent. It is the company’s first project in Uzbekistan.

SK E&C and UNG have been in discussions since 2016 for the project to modernize the Bukhara oil refinery so UNG can meet the country’s strict environmental standards. UNG has highly recognized the Korean builder’s outstanding technology and experience, according to SK E&C. 

The company said it will take part in the entire process of the project by sharing technical skills, and create a new business model that produces social value. 

Since last year, SK E&C has actively shared its techniques by operating project management education programs for some 30 state-run companies. 

“SK E&C will strengthen its cooperative ties with UNG through long-term and strategic collaboration,” said SK E&C President Ahn Jae-hyun, adding that the company will continue to focus on discovering business opportunities based on its techniques and experience. 

By Kim Da-sol (ddd@heraldcorp.com)