Azerbaijan, Baku, April 11 / Trend, A. Badalova /
All sources of funding will be considered in Azerbaijan for the construction of a new oil gas processing and petrochemical complex (OGPC).
Deputy Head of the State Oil Company of Azerbaijan's (SOCAR) Department on OGPC project Fuad Ahmedov said today at the Forum on the construction of a new oil gas processing and petrochemical complex, which is underway in Baku on April 10-12.
He said potential sources of the project funding are the funds of the authorized capital of SOCAR, State Oil Fund of Azerbaijan, export credit agencies, commercial banks and others.
"All sources will be considered, based on which the decision will be made," Ahmedov said.
He said the complex is large-scale, and the total project cost hits $15 billion, $12.4 billion of which will be provided by direct investments, while $2.6 billion - interest income received during the construction.
Payback period of the project is 7 years. The internal rate of return is 13 percent, which, according to Ahmedov, is a good indicator.
He said most of the funding will account for 2016-2017 - the period of most intense construction.
"State support to this project (legal and tax base, attracting a large amount of debt, state guarantees, resource base, some of the products will be purchased in off take mode) is very important and plays a great role," Ahmedov said.
With regard to the complex, Ahmedov said that the main (in percentage) facility in the complex will be oil refinery. Oil products will be mainly used to meet the growing domestic needs, and will be exported. In particular, diesel, jet fuel and gasoline will be exported. The main sale markets will be Mediterranean countries, Turkey, Georgia.
Ahmedov said 90 percent of petrochemical products will be exported.
The major part of petrochemical plant's products will be sold on the Turkish market.
According to Ahmedov, Turkey is a very attractive market in terms of high rate of development and great demand for petrochemical products.
Other sale markets of petrochemical products will be the CIS and Mediterranean countries.