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UFA, May 19. /TASS/. Russian mid-sized crude producer Bashneft will sign a 3 billion-ruble ($60 million) contract with US-based KMT International for engineering services and the delivery of equipment for oil sludge disposal, Bashneft Vice-President for Refining and Petrochemicals Vitaly Kozlov said on Tuesday.
The construction of an installation on the production site of the Bashneft-Ufaneftekhim subsidiary will help remove refining sludge dumps accumulated over decades.
"The contract will be signed during a month. Investment in the project is estimated at about 3 billion rubles," Kozlov said.
Bashneft is a vertically integrated oil company operating in more than 20 Russian regions and abroad.
In 2014, Bashneft ranked 6th among Russia’s oil companies by oil output (21.7 million tons) and 4th by primary refining (21.7 million tons).
Bashneft accounts for 3.4% of total oil extraction and 7.6% of overall refining in Russia. The company’s proven reserves totaled 2.145 billion barrels under the PRMS category as of December 31, 2014. The proven oil reserves reproduction rate equaled 179% and the provision with reserves stood at 16.9 years in 2014.
KMT International specializes in oil sludge cleaning. Its technologies have helped implement a large number of project solutions across the world.