SOCAR to determine OGPC project investors till mid. 2016 (UPDATE)
details added (first version posted at 19:00)
Baku, Azerbaijan, Oct. 30
By Maksim Tsurkov - Trend:
SOCAR (State Oil Company of Azerbaijan) will determine the investors of the project of establishing a new gas processing and petrochemical complex (OGPC) in the first half of 2016, Rovnag Abdullayev, SOCAR president, told reporters Oct. 30.
He said that at present, the work on the initial design of the complex is underway.
"FEED stage (basic modeling, drafting and assessment of the costs) is being finalized," he said. "We are negotiating with Japanese companies, the government and Eximbanks. We want to realize this project in cooperation with Japanese companies. Those which will make the best offers will be chosen."
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 will be four to five years. The project will be implemented by 30 percent at the expense of public funds (the amount will be partially allocated over five years), 70 percent - at the expense of borrowed funds.
OGPC will be located 60 kilometers from Baku and consist of three processing enterprises and thermal power plants.
The project implementation will serve to improve the product quality, enhance the country's export potential and help to protect the environment of the capital.
The annual capacity of the refinery as part of OGPC will reach 8.5-9 million tons, gas processing plant - 12 billion cubic meters. The petrochemical production will exceed one million tons (the capacity of the polyethylene production unit will reach 800,000 tons, the polypropylene production unit - 300,000 tons).
Edited by CN
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