State Oil Company of Azerbaijan (SOCAR) has reduced the cost of construction of the Garadag oil gas and petrochemical complex (OPGC) by more than 15%.
In his speech at the VII Caspian Oil & Gas Trade-Transport Conference in Baku Ramiz Aliyev, chief of SOCAR Strategic Development Department, said that OPGC cost will total $14.4 billion with payment of credit interest rates.
Earlier SOCAR estimated that investment worth $17 billion will be needed for construction of the complex.
The size of direct investments into the project will total $12.3 billion and the remaining will be payment of bank credit rates.
| OGPC expenses |
billion $ |
| Oil refinery |
6.1 |
| Gas refining plant and power bloc |
3.6 |
| Petrochemical complex |
2.6 |
| Credit repayment |
2.1 |
SOCAR representative has explained that the project has been corrected: the oil refinery capacity has been reduced from 10 to 8.5-9 million tons. Manufacture of light products at the oil refinery will not go down: 2.8 million tons of petrol, 3.5 million tons of diesel fuel and 1.3 million tons of aviation kerosene.
Aliyev said the term of recoupment of the project is 4.5 years.
