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. Last Updated: 07/27/2016

Fluor to Help Tatneft Build New Refinery

Fluor Corporation, the biggest publicly traded U.S. engineering and construction company, will help oil producer Tatneft build the country's first refinery since the Soviet era, the government of the oil-rich republic of Tatarstan said on its web site Wednesday.

Fluor won a tender and signed an agreement to build the $5 billion refinery, the web site said. The project will allow Tatneft, the country's sixth-biggest oil producer, to refine 7 million tons per year of the company's low-quality, high-sulfur oil.

The refining complex in the city of Nizhnekamsk should be operational by 2009, Rustam Minnikhanov, the prime minister of Tatarstan, said in a statement posted on the web site.

"We have limited time," Minnikhanov said. "We need a concerted effort from all the parties involved."

President Vladimir Putin has called on companies to increase oil refining to add value to crude exports. The country's largest producers, including LUKoil, Rosneft and TNK-BP, are upgrading refineries to raise the quality of shipments to European standards as the country's crude-export taxes make sales of refined products more attractive.

The new refinery will produce and export 2.5 million tons of European-standard diesel per year, and sell domestically nearly all of the 1 million tons of gasoline it makes, Khamza Bagmanov, the head of the plant, said in November.