Baku, Azerbaijan, May 14
By Emil Ismayilov - Trend:
The State Oil Company of Azerbaijan plans to complete the construction of a new oil and gas processing and production of petrochemical products (OGPC) complex in Azerbaijan in 2020, the head of the SOCAR, Rovnag Abdullayev said in interview to The Business Year magazine.
OGPC will be located 60 kilometers from Baku and will consist of three processing plants and a thermal power plant.
The implementation of the first phase of the project started in 2013 and will continue throughout 2014, he said.
"OGPC is the largest project of SOCAR in Azerbaijan and is of national importance," Abdullayev said.
The annual capacity of the refinery, which will be a part of the complex, will be about nine million tonnes, and gas processing plant - 12 billion cubic meters, according to the SOCAR head.
The cost of OGPC construction project, by taking into account the payment of interest on loans makes up $ 14.4 billion.
Some $ 6.1 billion out of the total amount allocated for the project cost will be accounted for by the refinery, some $ 3.6 billion - to the gas processing plant and power generation, $ 2.6 billion - petrochemical complex, and the remaining $ 2.1 billion - payments on loans.
The implementation of the project is provided 30-40 percent at the expense of equity and the remainder will be accounted for borrowed capital. The payback period is 4.5 years.
The first phase of the project implementation is scheduled for two years. Overall project implementation period is eight years.
Edited by C.N.