SOCAR attracts Fluor to consultations on purchase of licenses for its new oil and gas processing complex
Baku, Fineko/abc.az. The State Oil Company of Azerbaijan (SOCAR) has determined itself with consultant on the choice of licenses for the new oil & gas processing complex (SOCAR OGPC), construction of which in Baku is scheduled for the start in 2013.
At todays meeting of the Caspian-European Integration Business Club (CEIBC) SOCAR vice president for strategic planning Tofig Gahramanov says that Fluor was chosen the consultant on choice of licensing systems and equipment.
"A contract with it will be signed within 1 or 2 weeks. We need the consultant, as OGPC will include 40 process units, 27 of which are licensed," Gahramanov said.
In parallel, the Company is specifying the cost of OGPC, and currently the cost estimate of the complex increased by $1.6 billion up $14.2 billion in net capital expenditures, or up to $17 billion of total investment value (with taking into account costs on attracting and servicing of external funding) .
"These estimates are not still final," he added.
In mid-April the cost of OGPC was estimated at $15 billion: $12.4 billion in capital expenditures and $2.6 billion in costs on raising finances. The payback period is seven years. The internal rate of return is 13%. The main part of financing is expected to be made in 2016-17.
SOCAR wants to build the complex in Garadagh district of Baku. The project feasibility study was made by Technip, Foster Wheeler, and UOP. The first part of the complex will be commissioned between 2017 and 2018, and the launch of the entire complex is scheduled for late 2020.
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