Azerbaijan, Baku, June 1 /Trend/
Members of the Caspian-European Integration Business Club (CEIBC) held a meeting with Tofig Gahramanov, Vice-President of the State Oil Company of Azerbaijan (SOCAR), in Baku on May 31. Prospects of development of the project on construction of the new oil -gas processing and petrochemical facility as well as engagement of member companies of the Caspian-European Integration Business Club in it.
It is stated in the statement of CEIBC on Friday.
When giving a speech Tofig Gahramanov gave high evaluation to the present initiative of CEIBC since such meetings promote the establishment of business-government dialogue, exchange of opinions, discussion of proposals on prospects of development of new projects.
During the meeting Tofig Gahramanov noted that SOCAR had held a forum in Baku on April 10-12 dedicated to the construction of the new oil-gas processing and petrochemical facility. Participating in the forum were over 150 companies representing 30 countries and over 450 foreign delegates. Gahramanov also spoke about a 130-year history of oil refining in Azerbaijan.
He noted that importance was attached to upstream and midstream issues after Azerbaijan gained independence.
Considering the necessity for increasing quality and ecological indicators in oil processing and petrochemistry, President of Azerbaijan Ilham Aliyev assigned SOCAR to carry out corresponding work and submit a project on construction of the new oil-gas processing and petrochemical facility to the government.
According to him, the feasibility study of the project was developed together with foreign companies in September 2011. However, it was decided to update issues concerning production automation. As the result, the project was reconsidered and has been recently submitted to us.
"If the cost of the new facility varied within $12-13 bln ($15 bln together with bank interests) during the forum, now after addition of certain plants and other changes made in the project the cost reaches $14,2 bln ($16-17 bln together with bank interests," Gahramanov emphasized.
As far as the configuration is concerned, the capacity of the primary oil and gas processing will total 10 mln tons and 10 bcm. A petrochemical block and an energy block with the capacity of 250 Mw will be built.
In general, a total of 40 production units are planned to be assembled at the facility.
A tender for selection of the financial, legal and ecological consultants has been announced within the framework of the project.
About 60-70% of financial resources will fall to the share of credit allocations. 30-40% will be covered by the state. "In this issue we rely on support of the State Oil Fund of Azerbaijan", Gahramanov noted.
After commissioning of the new facility, the operation of existing ones will be gradually halted. Recreation zones and other non industrial facilities will be built on their places.
The construction of the new complex will start till 2014 and shall be completed in 2020. 15-16,000 constructors will be engaged in the project during the peak of construction works (2016-2017). The facility will be built 60km away from Baku at an area comprising about 1500 hectares near the Sangachal terminal (right on the border of Garadagh and Absheron districts).
Project investments will be reimbursed approximately within 7 years. Project profitability totals 13%. The products of the facility will be sold at markets of Azerbaijan, Georgia, Turkey, East European countries and Iran.
Telman Aliyev, President and CEO of CEIBC, spoke about the activity of the Club at the meeting. Nowadays, there are also plans on arranging several meetings with President and Prime Ministers of EU and CIS states. The meeting with Latvia's President Andris Berzins has been held quite recently.
SOCAR Vice President Tofig Gahramanov was handed CEIBC honorary membership certificate. New CEIBC member companies have also received certificates. Participating in the meeting were managers and representatives of several diplomatic agencies accredited in Azerbaijan.
Do you have any feedback? Contact our journalist at email@example.com