A number of Chinese companies and China Exim Bank show interest in the project for creating the Oil and Gas Processing and Petrochemical Complex (OGPC) in Azerbaijan, the head of the State Oil Company of Azerbaijan (SOCAR), Rovnag Abdullayev, said.
He noted that the work on constructing the OGPC hasn’t been suspended. "The work on the project continues and negotiations are underway. Earlier, we held talks with potential investors led by Japanese Mitsui company and created a working group. But we considered their proposals ineffective and suspended working with them. We recommended Japanese companies to revise their proposals. If they put forward more precise proposals, we will review them. Otherwise, we will work with the companies which put forward the best proposals,” Trend cited Abdullayev as saying.
The cost of construction of the OGPC is $17.1 billion. 30% of the project's cost is planned to be financed with the authorized capital (nearly $5 billion), while 70% with the borrowed capital (about $12 billion).
The total cost of the first phase of the OGPC project is estimated at $7 billion, including interest on loans - $8.45 billion. The payback period of the project will last four to five years.
The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant.
