SK E&C signs a $7.2 million deal with Uzbekneftegaz

`An image of an oil refinery in Bukhara, Uzbekistan. SK E&C is to undertake a front-end engineering design job for the oil refinery, which is located 437 kilometers (271 miles) southwest of the capital city Tashkent. [SK E&C]

SK Engineering & Construction (SK E&C) signed a $7.2 million deal with a state oil and gas company in Uzbekistan to modernize an oil refinery by boosting its sustainability and efficiency.

The construction company announced on Tuesday that it secured the business from Uzbekneftegaz (UNG), the state-owned company that runs the country's oil and gas businesses. The job involves conducting front-end engineering design for the oil refinery in Bukhara, located 437 kilometers (271 miles) southwest of the capital city Tashkent.

Last year, the two companies agreed to work together on the $600 million Bukhara project, and this is the first order to come as a result of that agreement.

The latest deal is part of the Engineering Service Agreement signed between the two parties on Monday.

SK E&C “plans to strengthen strategic partnership with UNG with a long-term perspective,” said SK E&C President and CEO Ahn Jae-hyun. The company “will focus on a business model that harmonizes the economic and social values that are based on eco-friendly technologies and investment for new technologies.”

By Jin Min-ji