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Fluor started selection of licensed technologies for SOCAR OGPC

10 July 2012 14:54 (UTC +04:00)

Baku. Elnur Huseynguluyev - APA-Economics. State Oil Company of Azerbaijan (SOCAR) keeps on consultations for selection of licenses for construction of new oil & gas processing complex (SOCAR OGPC), planned for construction in Baku in 2013.

The Company reports that SOCAR Vice president for strategic planning Tofig Gahramanov has held first coordination meeting with the consultant for choice of licensing systems and equipment Fluor Company. The meeting involved participation of reps of Economic Development Ministry, State Oil Fund (SOFAZ), SOCAR Department on issues of OGPC construction, joint venture of SOCAR- foster Wheeler Engineering Services, etc. Fluor has reported of planned work on license selection, necessary procedures, assessment methodology.

SOCAR needed a consultant as OGPC will include 40 technological devices, 27 of which are being licensed. Among potential supplies of licensed equipment Axens, CB&I, Chevron, Dow, DuPont, Ineos, KBR, Linde, LyondellBasell, Shell, Technip, UOP and others are considered.

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.

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.