Memorandum on Shipbuilding Plant Construction Signed in Azerbaijan

Oil&Gas Materials 19 May 2008 15:46 (UTC +04:00)
Memorandum on Shipbuilding Plant Construction Signed in   Azerbaijan

Azerbaijan, Baku, 19 May / Trend corr. U.Ismayilova / A memorandum on construction of a shipbuilding plant was signed by the State Oil Company of Azerbaijan (SOCAR), Azerbaijani Investment Company (AIC) and Korean company STX in Baku on 19 May, Rovnag Abdullayev, President of SOCAR, stated.

"The plant will be built in Garadag region of Azerbaijan," Abdullayev said.

SOCAR's share holding in the project is 65%, AIC - 10% and STX - 25%.

According to Abdullayev, the ships of all types used in the Caspian Sea will be built at the plant.

Under the current feasibility study, the plant construction will cost $400mln (without construction expenditure). The plant is expected to be put into operation in 2011.

The ship building plant will be an addition to the project on construction of the new oil terminal and port in Garadag region in Azerbaijan. The Kazakhstan oil will be transported via this terminal for further transit through the Baku-Tbilisi-Ceyhan pipeline to Europe. The Kazakhstan tankers could be repaired in Azerbaijan in this plant, like other ships of the Caspian region. It is expected that the similar plant will not be constructed in the region. The orders to build ships will be accepted from both the local as well as the foreign customers.

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