SOCAR, E. ON sign new contract

Oil&Gas Materials 18 July 2011 16:59 (UTC +04:00)

Azerbaijan, Baku, July 18 / Trend E.Ismayilov /

The State Oil Company of the Azerbaijan Republic (SOCAR) and the German E. ON continues the procedure to develop a contract on the project of reconstruction and modernization of the gas distribution system in Baku and the surrounding area, a source in SOCAR told Trend.

"The contract is not signed yet, but preparations are underway," the source said.

Particularly, he said, preparations are underway for the next visit of the German company's representatives to Azerbaijan.

The source did not name the possible term of signing the contract.

The gas system of Baku and Absheron peninsula is the largest in the country and covers about 650,000 subscribers. 90 percent of the existing infrastructure should be upgraded for its reconstruction and modernization.

The total project cost may be 800-900 million euros.