Project Outline

This swap project which is being implemented by our client, the National Iranian Oil Engineering and Construction Company, is designed to facilitate the transfer of crude oil from littoral states of Caspian Sea to petroleum refining facilities in Tehran. The project which called for the installation of 16-inch and 32-inch crude-oil pipelines, will have a daily capacity of 115,000 barrels of crude oil upon completion of its first phase. The project’s capacity will increase to 370,000 and 500,000 barrels per day respectively when the second and third phases of the project come online.

The 340 km crude oil pipeline links the Caspian Sea to Iran’s 250,000 bpd Tehran refinery and the 100,000 bpd Tabriz refinery. Five international companies, including Russia’s Lukoil, Dublin-based Dragon Oil, Kazakhstan’s Munai-Impex, BP-controlled Sidanco and European trader Vitol, are already involved in shipping crude to Neka. The oil delivered is exchanged for an equal amount of Iranian crude loaded for export at Iran’s Kharg Island terminal in the Persian Gulf.

Scope of Work

The Project’s basic engineering was performed by the design & engineering division of National Iranian Oil Company (NIOC) and the installation of 4 pumping stations, a pressure breaker, and a terminal was awarded to Kayson within the framework of an EPC (Engineering, Procurement, Construction) contract. It was the first time in the history of the Iranian construction industry that the NIOC entrusted an EPC project to a private sector company.

Kayson’s scope of work involved local and foreign procurement, process, mechanical, electrical, and civil engineering, piping and architectural works, as well as start-up and delivery. Kayson was also responsible for putting in place safety, quality assurance and quality control procedures in accordance with contract requirements.