LUKOIL has awarded a contract to McDermott International for works in Russia. Credit: Josh Brittain.

McDermott International has secured a contract from LUKOIL-NizhegorodNefteorgSintez for the engineering, procurement and construction (EPC) of the 2.1 million tonnes a year delayed coker unit in the Deep Conversion Complex, Russia.

The complex will be built at the 17 million tonnes a year Kstovo refinery in central Russia’s Nizhny Novgorod region. It will also include a diesel hydrotreater, gas fractionation unit, sulphur and hydrogen production units, as well as associated systems.

According to McDermott, the contract is valued between $250m and $500m.

The contract follows an award secured by Chevron Lummus Global (CLG), McDermott’s joint venture with Chevron, in 2016 for delayed coking technology.

“This is the company’s first downstream EPC project in the Russian Federation.”

McDermott won a detailed engineering, procurement and long lead supply award contract for the project last year.

McDermott Europe, Africa, Russia and Caspian senior vice-president Tareq Kawash said: “Our ability to provide integrated, end-to-end solutions, from our industry-leading refining technology to a highly efficient project delivery model, has been a deciding factor in securing this win.

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“This is also significant for McDermott because it is the company’s first downstream EPC project in the Russian Federation.”

Scheduled for startup in 2021, the delayed coking complex will improve the light product yield of the refinery by more than 10% and cut fuel oil production by 2.7 million tonnes per annum.

Vertically integrated oil and gas company Lukoil accounts for more than 2% of the global oil production and around 1% of the proven hydrocarbon reserves.