SOCAR needs credits of Azerbaijan Central Bank

SOCAR plans to borrow a credit from the Central Bank of Azerbaijan (CBA) to fund construction of the Phase 1 of the oil and gas refining and petrochemical complex (OGPC) in Baku, Suleyman Gasymov, SOCAR Vice President for Economic Affairs, said at a press conference yesterday.

“We would like to get the credit against the security of the state from the CBA. SOCAR’s administration has already sent an official application to the CBA administration. The CBA  experts have been considering our proposal,” Gasymov said.

He said in order to fund the OGPC Phase 1, the company needs to borrow $2.1 billion (30% to be paid for the cost of the Phase 1 and the remaining 70% will be covered at the expense of borrowings).

“Until 2018 we need about $1 billion,” Gasymov said.

OGPC Phase 1 project envisages construction of the gas refining plant and the gas chemical plant.

Construction of the Phase 1 of the project is planned to begin at the end of 2015 and to be completed in quarter 4, 2015. The initial cost of the project is estimated at $7 billion. This will be $8.45 billion with payment of the credit interests.

* In 2009 CBA allotted SOCAR credit worth 750 million AZN for the period of 7 years to implement several projects aimed at increase in the gas export and production. 450 million AZN of this amount was spent by the company to fulfill its foreign commitments.—0—