Indian Oil (IOCL) has awarded Rs10.94bn ($165m) engineering, procurement and construction contract to Punj Lloyd for delivery of the package 2 at Haldia refinery in the Indian state of West Bengal.

Under the contract, Punj Lloyd will be responsible for the residual process design, detailed engineering including hazard and operability (HAZOP) study, engineering, procurement, construction.

It will also be responsible for commissioning of the sulphur block comprising the sulphur refinery unit, amine regeneration unit, the sour water stripper including the utilities and offsite facilities.

Punj Lloyd managing director and group CEO Chalasani said: "For IOCL itself, Punj Lloyd has constructed the Sulphur Block of the Mathura, Guwahati and Koyali refineries, taking this relationship with IOCL as far back as 1998. This is a challenging assignment as we need to work in a running refinery."

The IOCL’s Haldia project is designed to upgrade black oil, mainly high sulphur fuel oil to higher value products including diesel and LPG, thus significantly improving gross refinery margins.

The project will also produce improved quality diesel in compliance with the BS-IV specifications.

Earlier, Punj Lloyd supplied complex refinery units; the msq upgradation, hydrogen generation and hydrocracker unit for the Haldia refinery, which was commissioned in 1975.

The Haldia refinery is located on the bank of the river Hoogly at Haldia in East Midnapur district of West Bengal.