Details added (first version posted on 11:50)
Baku, Azerbaijan, May 25
By Azad Hasanli - Trend:
The State Oil Company of Azerbaijan (SOCAR) and German Uniper energy company will create a joint venture for a steam turbine generator unit production.
Head of SOCAR Rovnag Abdullayev and President of Uniper Klaus Schäfer signed the corresponding agreement in Baku May 25 to establish SOCAR-Uniper joint venture.
SOCAR will own 51 percent of the joint venture, while 49 percent will belong to Uniper.
In addition, the sides have signed a preliminary project agreement on the construction of a steam turbine generator unit at the Ethylene-Polyethylene plant.
Uniper is a German energy company with 14,000 employees based in Düsseldorf, North Rhine-Westphalia. It began operating on January 1, 2016.
During a briefing after the signing ceremony, SOCAR president said that the cost of the project on creation of the SOCAR-Uniper joint venture is estimated at 26 million euros.
He added that this project is aimed at increasing economic efficiency of the steam-generating complex at the Ethylene-Polyethylene plant, and it will ensure production of additional volumes of electricity.
Abdullayev added that 20 million euros for the project will be drawn from a Bavarian bank for a period of 15 years at an annual rate of one percent.
The initial capital of the joint venture will amount to four million euros, and the funds will be invested by Uniper. SOCAR will provide equipment worth two million euros.
"The unit will begin production of steam in 2018," head of SOCAR said. "The commissioning of the unit will reduce the prime cost of steam production to 0,019 manats per cubic meter, which is a very low figure for Azerbaijan."