Baku, Azerbaijan, April 23
By Maksim Tsurkov – Trend:
Cost of the project on modernization and reconstruction of the Baku oil refinery named after Heydar Aliyev is presently estimated at about $2.2 billion, the advisor to vice-president on strategic development at Azerbaijan’s state oil company SOCAR, Teymur Aliyev, told reporters on the sidelines of the 3rd SOCAR International Caspian and Central Asia Downstream Forum on Trading, Logistics, Refining and Petrochemicals in Baku April 23.
He stressed that the project is fully funded by Azerbaijan's state oil fund SOFAZ.
"This is not the final cost of the project. A deal on reconstruction of the existing plants was signed with a non-fixed price due to the fact that the plants are outdated. As the plants are old, with a long period of operation, none of the contractors risk signing an agreement with a fixed price. We also try to save and reduce costs. Thus, the project cost can still change in both directions, "Aliyev said.
Previously, SOCAR signed an Engineering, Procurement, and Construction (EPC) deal with the Spanish Tecnicas Reunidas to upgrade the existing facilities at the Baku oil refinery within the framework of its modernization project.
The Baku Oil Refinery’s modernization will be completed by 2022. The refinery’s processing capacity will be increased from 6 to 8 million tons of oil per year. The operational period will increase up to 2040.
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