89% of construction work in Carbamide Plant completes

Baku. 1 June. REPORT.AZ/ 89% of construction works of Carbamide Plant of the State Oil Company of Azerbaijan Republic (SOCAR) in Sumgait has been completed.

Report informs, Director of the Carbamide Plant Khayal Jafarov told at today's International Oil&Gas Conference in Baku.

According to him, in general 95% of work within the project finished. Director told that the plant will employ 300-350 staff during operation.

Talking about financing, Kh.Jafarov said that EUR 251 mln was allocated by Korean Exim Bank (KEXIM), another EUR 249 mln by UniCredit, Societe Generale, Deutsche Bank as a credit line under the KEXIM guarantee: “In first phase, the project was financed from state budget”.

Director of the plant told that enterprise will annually produce 650-660 tons of carbamide. According to him, 150,000 tons or 25% of the production is envisaged for domestic market. Kh. Jafarov told that this volume may be increased to 250 thousand tons depending on domestic demand: “The remaining part of the products will be directed to export”.

Notably, mechanical works in Carbamide Plant will be completed by December 2017, in second quarter of 2018 the plant will be handed over to SOCAR.

The plant is being built within framework of “State Program on reliable provision of Azerbaijan population with food products” (2008-2015) and “State Program on industrial development of the Azerbaijan Republic” (2015-2020), endorsed by appropriate order of the President of Azerbaijan. Agreement for projecting, procurement and construction aimed at building carbamide production enterprise was signed between SOCAR and Samsung Engineering Co.Ltd (South Korea) on March 13, 2013. According to contract, after completion of construction works, Samsung Engineering will carry out all necessary tests and will provide the enterprise to SOCAR completely ready for use. Haldor Topsoe (Denmark) and Stamicarbon B.V (Netherlands) are licensors of the plant for production of ammoniac and carbamide. Finnish company Neste Jacobs Oy will provide consulting and independent inspection services on project management.