Baku, Azerbaijan, June 4
By Maksim Tsurkov - Trend:
The State Oil Company of Azerbaijan (SOCAR) has received concrete proposals from several foreign investors on the possible participation in the project for creation of a new oil and gas processing and petrochemical complex (OGPC), SOCAR's vice president for strategic development Tofig Gahramanov said June 4.
He made the remarks during the 22nd international Caspian Oil and Gas Exhibition and Conference in Baku.
He said foreign investors actively show interest in this project.
'We have received several concrete proposals and started negotiations with the prospective partners," said Gahramanov.
If the negotiations are completed successfully, the subsequent stages of the project can be implemented jointly with partners, he added.
"Currently, we continue working on this issue."
The total cost of the first phase of the OGPC project is estimated at $7 billion (including interest on loans - $8.45 billion). The payback period of the project will last 4-5 years.
Furthermore, 30 percent of the project will be implemented with the state funds (the funds will be allocated in parts throughout 5 years), while 70 percent of the project will be implemented with the borrowed funds.
The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant.
The project's implementation will allow to improve the product quality, enhance the export potential of the country and help protect the environment of the capital.
The annual capacity of the refinery within OGPC will be 8.5-9 million metric tons; the gas processing plant - 12 billion cubic meters, petrochemical production - over 1 million metric tons (the capacity of the plant for production of polyethylene will be 800,000 metric tons, polypropylene production unit - 300,000 metric tons).
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