SOCAR announces timeline for completion of new processing complex in Azerbaijan
Baku, Azerbaijan, May 14
By Aygun Badalova -Trend:
The completion of new Oil and Gas Processing and Petrochemical Complex (OGPC) in Azerbaijan is scheduled for 2020, the head of the State Oil Company of Azerbaijan (SOCAR) Rovnag Abdullayev said in interview to The Business Year magazine.
"Currently OGPC is SOCAR's largest downstream project in Azerbaijan, and is of national significance. Its development stage started in 2013 and will continue throughout 2014," Abdullayev said.
The complex, according to SOCAR's head, will consist of an oil refinery with a capacity of around 9 million tons and a gas refinery with a capacity of 12 billion cubic meters, as well as a petrochemical plant.
OGPC will be located in 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant (TPP).
The cost of construction of the OGPC is $17.1 billion (including interest on loans received during the construction period).
Some 30 percent of the project's cost is planned to be financed with the authorized capital (nearly $5 billion), while 70 percent of the projects - through the borrowed capital (about $12 billion).
The profitability of the complex will be 13 percent and the payback period of investments will cover from seven to eight years.
SOCAR plans to start the construction of a gas processing plant under OGPC project in 2015.