SOCAR Plans to Start Construction of New Processing Plant
OREANDA-NEWS. April 10, 2012. State Oil Company of Azerbaijan (SOCAR) is holding a three-day forum in Baku on oil and gas processing and oil chemical complex (SOCAR OGPC Forum).
At the sidelines of the forum SOCAR President Rovnag Abdullayev said that tender procedure will be held this year to lay the fundament in the first quarter of 2013 and start complex construction.
" Project work is currently on the final stage. The project cost with 30% accuracy is estimated at USD 14 bn but will be specified with 10% accuracy. Funding sources are being specified, the funds of not only State Oil Fund of Azerbaijan but also the banks , including export-import banks’ funds will be drawn",- R. Abdullayev said.
Scheme of organizing of such financing has been approved by the company when constructing Star oil refinery in Turkey.
" Estimated cost of Star refinery project is USD 4,5 bn and financial cost- USD 6. Out of total volume of drawn funds USD 2,4 bn accounted for export-import banks, USD 1 bn- for commercial credits, USD 1,5- for funds of the project shareholders. Perhaps, the same proportion will be applied in the oil complex construction in Baku : over USD 5 bn will be drawn from export-import banks ",- R. Abdullayev noted.
SOCAR will become the main shareholder and the issue of other shareholders’ participation is under discussion.
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