Saipem-Petrojet consortium awarded $150mln contract for Egypt's first polybutadiene plant

Contract was awarded by Egyptian Ethylene & Derivatives Co

  
Image used for illustrative purpose. Worker walk at INA's oil refinery in Rijeka January 15, 2014. Hungarian oil group MOL said talks it resumed with the Croatian government on Thursday about their partnership in energy firm INA were based on a "rational attitude" and MOL was ready to continue talks about INA in an accelerated way. Picture taken January 15, 2014. REUTERS/Antonio Bronic

Image used for illustrative purpose. Worker walk at INA's oil refinery in Rijeka January 15, 2014. Hungarian oil group MOL said talks it resumed with the Croatian government on Thursday about their partnership in energy firm INA were based on a "rational attitude" and MOL was ready to continue talks about INA in an accelerated way. Picture taken January 15, 2014. REUTERS/Antonio Bronic

REUTERS/Antonio Bronic

A consortium of Italian oil field services company Saipem and Egypt-based Petrojet has been awarded a $150 million contract by Egyptian Ethylene & Derivatives Co. (Ethydco) for the country's first polybutadiene-producing facility with annual production capacity of 36,000 metric tonnes, it was announced last week.

Polybutadiene is a synthetic rubber with a high resistance to wear and is used in the manufacture of tires, which consumes about 70 percent of all global production.

The consortium would be jointly responsible for "detailed engineering design, procurement and supply of equipment and materials, construction, pre-commissioning, commissioning up to successful start-up and performance testing," Saipem said in a press statement.

The scope of work of the new plant comprises one production train of Low Cis Butadiene Rubber and related facilities, the statement said.

"After successful completion of the fast-track Zohr project, this award confirms Saipem as a partner of choice to support the sustainable development of Egypt," the statement quoted Maurizio Coratella, Chief Operating Officer of the Saipem Onshore E&C Division as saying.

Mid-month, the company had issued a press statement announcing the withdrawal of its 2020 guidance noting that "the intensification of the uncertainty caused by the development of the pandemic might cause a sharp demand contraction and consequently a delay of some projects."

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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