SOCAR names cost of new refinery in Turkey

The financial component of a project of SOCAR's new oil refinery in Turkey is estimated at $6 billion, SOCAR president Rovnag Abdullayev told media today.

"The cost of the refinery construction project is $ 4.5 billion," Abdullayev said. "About $ 2.4 billion of the total volume of the funds to be drawn within the new refinery construction, will fall to the funds of export banks of the countries which will buy the equipment for the refinery construction."

He said that the volume of commercial lending will hit $1 billion. About $1.5 billion are planned to be ensured at the expense of shareholders' funds.

"It is planned to ensure the financing process of a new complex on oil and gas processing and production of petrochemical products in Azerbaijan using the same system," Abdullayev said.

This project is planned to be realized at the expense of shareholders' funds, the State Oil Fund of Azerbaijan (SOFAZ) and export banks' loans.

"This is one of the largest being implemented projects in Azerbaijan," he said. "It will contribute to the economic development of the country."

According to the feasibility study of the project, total investments will hit about $ 15 billion. The payback period is seven years.


/Trend/