SOCAR invites Japanese companies to invest in OGPC project
Baku, Azerbaijan, Sept. 18
By Maksim Tsurkov - Trend:
SOCAR (State Oil Company of Azerbaijan) has offered a number of Japanese companies to take part in the establishment of a new Oil-Gas Processing and Petrochemical Complex (OGPC) in Azerbaijan, SOCAR's senior representative told Trend Sept. 18.
The representative said that the negotiations on this issue are being held with several Japanese companies.
"SOCAR has offered Japanese companies to take part in this project as shareholders and lenders who would take over the funding of SOCAR's share," the representative said. "We would like Japanese Eximbanks to finance up to 80 percent of project cost. In particular, we met with representatives of the Japan Bank for International Cooperation JBIC, who attach great importance to this project."
"The Japanese companies are interested in financing and thoroughly considering the project," the representative said.
"We have already signed a memorandum with Mitsui & Co.," the representative said. "Itochu, JACCS and Japanese companies operating in Turkey also show interest. This is an open project and any company will be able to participate in the construction, financing and management."
The total cost of the first phase of the OGPC project is estimated at $7 billion (including interest on loans - $8.45 billion). The payback period of the project will last four to five years.
Furthermore, 30 percent of the project will be implemented with the state funds (the funds will be allocated in parts throughout five years), while 70 percent of the project will be implemented with the borrowed funds.
The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant.
The project's implementation will improve the product quality, enhance the export potential of the country and help protect the environment of the capital.
The annual capacity of the refinery within OGPC will be 8.5-9 million metric tons; the gas processing plant - 12 billion cubic meters, petrochemical production - over 1 million metric tons (the capacity of the plant for production of polyethylene will be 800,000 metric tons, polypropylene production unit - 300,000 metric tons).
Japanese Itochu has a 4.3 percent stake in the Azeri-Chirag-Guneshli (ACG) block development project, as well as 3.4 percent stake in the Baku-Tbilisi-Ceyhan project.
Edited by CN
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