Maire Tecnimont inks agreement with Carbon Holdings for EPCC contract for Tahrir Petrochem Complex

27-Mar-14

Maire Tecnimont S.p.A., through some of its subsidiaries, in association with Archirodon Group, has signed an agreement with Carbon Holdings for the realization of Utilities and Offsite Facilities as part of the Tahrir Petrochemical Complex located in Ain Sokhna, Egypt. Carbon Holdings - founded by Mr. Basil El-Baz, Chairman and CEO - is a privately owned Egyptian company which develops and operates downstream oil and gas projects in its home Country. The agreement, awarded on a direct negotiation basis, envisages Engineering, Procurement, Construction and Commissioning (EPCC) activities executed by a consortium composed by Maire Tecnimont Group and Archirodon Group for an expected value between US$1.7 bln and US$1.95 bln, out of which 50% pertaining to the Maire Tecnimont Group. Following financial close, expected by the end of the current year, the Group will book its stake of the project. It is expected that Drake & Scull International will become a member of the Consortium. SACE, the Italian export credit company, is currently evaluating its support to the project financing. The Project's scope of work consists in the EPCC activities for all the Complex Utilities & Offsite facilities encompassing Utilities Island, Sea Water Desalination System, Waste Water Treatment, Sea Works, Tank Farm, Jetty Works, Power Plant, Pipelines and Auxiliary Packages and Systems. Maire Tecnimont's scope of work will consist in the Engineering and Procurement (EP) activities for Utilities Island, Sea Water Desalination System, Waste Water Treatment, Power Plant and Auxiliary Packages and System, as well as in the Commissioning for all the facilities. Netherlands-based Archirodon Group’s scope of work will cover the Engineering, Procurement and Construction (EPC) supply of Sea Works, Tanks, Jetty Works and Pipelines as well as the Construction activities for all the remaining facilities. Drake & Scull International will participate in the Project to perform part of the local scope. The Tahrir Petrochemical Complex, located at the entry of the Suez Channel, is one of the most strategic projects supporting the industrial development of Egypt, strengthening the domestic petrochemicals sector and further consolidating foreign direct investments in the Country.