Contract to build shipyard in Azerbaijan signed in Singapore

The State Oil Company of the Azerbaijan Republic (SOCAR), Azerbaijan Investment Company (AIC) and Singapore's Keppel Offshore and Marine have signed a contract signed in Singapore to establish a joint venture under construction of a new shipbuilding and repair plant in Baku, SOCAR reported.

SOCAR President Rovnag Abdullayev, AIC Head Afgan Isayev and Keppel CEO Tong Chong Heong have undersigned the agreement to establish LLC Baku shipyard.

Under the contract, equity division in the enterprise will be distributed as follows: SOCAR - 65%, AIC - 25% and Keppel - 10%. Keppel will also be entitled to increase its stake by another 10% for the next three years.

The foundation of the new plant was laid on 19 March 2010 with the participation of Azerbaijani President Ilham Aliyev.

Currently, the British company Royal Haskoning and the Dutch TT carry out design work. The preparatory work for construction was launched in parallel.

Pre-tender procedures have also been held and a list of companies that will participate in the tender prepared. Launch of the plant is scheduled for June 2013.

The shipyard's capacity is 25,000 tons of steel per year. The plant will annually manufacture four oil tankers with deadweight of 15,000 tons, and four marine maintenance and towing vessels. The main objective of the project is the construction of vessels required to meet the needs of the Caspian sea.


/Trend/