SOCAR plans to use the investor-partner for joint construction of the new oil and gas refining and petrochemical complex (OGPC) in Baku’s Garadag region, Tofig Gakhramanov, SOCAR’s Vice President for Strategic Development, said at the Caspian Oil & Gas 2015 conference yesterday.
“Several companies have submitted their proposals on participation in the project as an investor-partner. For this purpose SOCAR has started talks with the potential partners,” he said.
Gakhramanov said that if the talks are successful, then implementation of the next stages of this project will be implemented jointly with the selected investor-partner.
Construction of OGPC will be done in two stages, at the first stage it is planned to build the gas refining plant and the petrochemical plant and the second stage – the oil refinery.
The construction of the first stage will cover the period between 2015 and 2021. The cost of the first stage of the OGPC construction is estimated at $7 billion. Cost of this stage with repayment of credit interest rates will total $8.45 billion.
Judging by all, SOCAR did not have finance to fully fund this expensive project and the government did not take a risk to allocate huge sum of money to support this project. Therefore, it was decided to use foreign partner in this project.—0—
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