Azerbaijan, Baku, March 13 / Trend E.Ismayilov /
The State Oil Company of Azerbaijan (SOCAR) signed a contract with the Korean Samsung Engineering Co Ltd in Baku on Wednesday for designing, procurement and construction of a carbamide plant in Sumgait.
The contract was signed by SOCAR head Rovnag Abdullayev and President and Chief Executive Officer of Samsung Engineering Co Ltd, Ki-Seok Park.
Samsung Engineering won the open tender for the construction of a carbamide plant.
The plant will be on the balance sheet at "Azerikimya" production association. It is part of SOCAR.
The new plant will be located in Azerikimya's industrial area in Sumgait. The annual design capacity of the plant will be about 600,000 carbamide per year (2,000 tons per day) and 1,200 tons of ammonia per day.
The plant is to be commissioned in late 2014 - early 2015. Around 3,000 seasonal workers are expected to be provided with jobs during the construction work. After the plant is commissioned, around 500 people will get jobs.
The funds for the plant construction will be allocated from the state budget, as it will be built within the State Programme on Reliable Food Supplies for the Population of the Republic of Azerbaijan in 2008-2015.
SOCAR has been doing research in this field for three years to implement this project. In this regard, SOCAR experts studied the experience of other countries that have already created carbamide production. In particular, SOCAR specialists visited such countries as Egypt, Iran, and Amman while preparing the project.
At present, these companies are more common in the countries with large reserves of natural gas, as this production is based on natural gas. In particular, they are widely used in the Middle East, North Africa and Central Asia.
According to the experience of other countries, the payback of carbamide producing enterprises is about 6-7 years.
SOCAR plans to begin constructing a similar plant in Georgia.