Loan worth 1.2 billion Azerbaijani manats will be allocated to the State Oil Company of Azerbaijan (SOCAR) under the state guarantee, SOCAR President Rovnag Abdullayev told reporters July 14.
The loan will be allocated for reconstruction of the Baku Oil Refinery named after Heydar Aliyev, according to Abdullayev.
"As is known, there is a certain delay in the process of construction of a new refinery within the project for creating new oil and gas processing and petrochemical complex (OGPC)," said the company's president.
"Therefore, it was decided to prolong the functioning of the Baku Oil Refinery named after Heydar Aliyev till 2030 by carrying out reconstruction work there," he added.
For this purpose, the government will allocate loan worth 1.2 billion Azerbaijani manats either from the funds of the country's Central Bank, or from the state budget under state guarantee, said Abdullayev.
The company president added that the reconstruction work at the refinery includes the liquidation of Azneftyag refinery as well.
This work will start from 2016 and by 2017-2018, the production capacity at Baku Oil Refinery named after Heydar Aliyev will be increased, he said. "Moreover, Euro 5 gasoline production will start, a bitumen facility and six other large units will be constructed there."
SOCAR announced about liquidation of Azneftyag oil refinery and its merger with Baku Oil Refinery named after Heydar Aliyev from January 2015.
This decision was made as part of the work on improving and optimizing the company's structure.
Edited by SI