OREANDA-NEWS. On October 03, 2007 OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) announced a strategic partnership with Czech-based CHETENG s.r.o., aimed at joint implementation of LSTK projects in the chemical and petrochemicals sectors, reported the press-centre of OMZ.

The relationship was announced at the 49th International Machine-Building Exhibition, currently (Oct. 1-5) under way in Brno, Czech Republic.

Among the projects embraced by the partnership:

- A gas processing complex in the Republic of Sakha (Yakutia) (production of 400,000 tons of synthetic fuel liquids (SFL), 450,000 tons of methanol, 200 tons of ammonia per year);

- An oil refining plant in Kingisepp city (Leningrad region) (500,000 tons of oil per year);

- The Verkhoturskiy oil and gas processing plant project, to refine 3 million tons of oil, and 3 billion m3 natural gas, etc.

The two companies currently have several strategic partnership protocols signed. Implementation of the projects is planned within the next 3-5 years. At the moment, initial project preparation works are under way for the construction of the Yakutia gas processing complex and oil refining plant in Kingisepp.

By diversifying its business, OMZ has managed to quickly enter the market for production of petrochemicals industry equipment.

The petrochemicals division of OMZ was separated out in 2006. As of today, OMZ Oil and Gas Projects (Izhorskiye Zavody), which is part of OMZ, controls over 50% of the heavy reactor equipment (500 tons and higher) segment of the market, and about 30%-40% in the mid-range reactor equipment (200 to 500 tons) segment.

Long-term plans for the development of OMZ’s oil and gas business, which envisage consolidation of engineering assets and assets of producers, as well as strategic partnership with a number of companies in Russia and abroad, will OMZ to position itself as a serious player in the equipment production sector for oil and gas processing, and for chemical enterprises, with full capacity for engineering, complex equipment provision, and EPC contracting.

CHETENG s.r.o. is a specialized designing and engineering institute, known in its current form since 1992. The entity works under the business name Chepos Engineering Ltd., continuing the traditions of the Chepos company, established as a state-owned enterprise in 1967. The company has successfully completed over 300 projects, among which are the design and construction of a number of large oil refining and chemical plants.