Baku Oil Refinery's reconstruction will be funded by State Oil Fund

Baku. 1 June. REPORT.AZ/ The State Oil Fund of Azerbaijan (SOFAZ) will provide necessary funds for upgrading and reconstruction of Heydar Aliyev Oil Refinery Plant.

Report informs, SOCAR's Vice-President on Strategic Development Tofig Gahramanov told: “Funding for upgrading of Heydar Aliyev Oil Refinery Plant will be fully covered by the state. During last one month these issues have already been solved on state level. The necessary funds will be provided by SOFAZ in US dollars”.

He noted that this amount will be provided as an increase of SOCAR stock capital.

According to him, attraction of loans under state guaranty for works in "Azərikimya" Production Union has been authorized.

"Half a year ago the companies UOP and Fluor carried out feasibility works. The approximate cost then was estimated as $1.3 bln. $300 mln part of these funds was envisaged for Azerkimya PU, about $1 bln for Oil Refinery Plant. Then we started to deal with this comprehensively. Precise figure is determined after completion of tenders. An estimated final sum for upgrading and reconstruction works in Heydar Aliyev Oil Refinery Plant and "Azərikimya" PU has been determined as $1.8 bln”, SOCAR official told. 

According to T. Gahramanov, for "Azərikimya" may be required approximately $ 320-340 mln. He said that funds for works in Oil Refinery estimated at $ 1.5 bln: "The reason for the increase in cost of modernization works is all factory farming is not in a good condition."

According to him, amount of funds spent for both projects was $ 400 mln so far.

SOCAR's Vice-President also noted that works in the refinery will be stopped in August for major overhaul.