Within the visit of South Korea Prime Minister Han Seung-soo to Azerbaijan today, Memorandum on creation of Caspian Shipbuilding Factory was signed.
State Oil Company of Azerbaijan Republic (SOCAR) President Rovnag Abdullayev said the Memorandum has been signed between SOCAR, Korean STX and Azerbaijan Investment Company (AIC).
“According to the Memorandum SOCAR acquires 65% of the stake in the project, STX 25% and AIC 10%,” R.Abdullayev said.
STX that has initiated the project offers parity distribution of the project shares between all the shareholders – STX itself, Azerbaijan Investment Company (AIC), State Oil Company of Azerbaijan Republic (SOCAR), and Azerbaijan State Caspian Shipping Company (Kaspar).
Azerbaijan insisted that STX should acquire an equity stake of at least 35% of shares to make the latter to be more interested in the project operatorship and to raise more investments from abroad.
“The Factory will be situated nearby Heydar Aliyev Baku Deepwater Basics Factory obtained by SOCAR and both factories will be mutually complementary by orders and work. The new factory will produce all vessels necessary for shelf works. We need many ships. 27 vessel types are applied in Azerbaijan. Only SOCAR has 270 vessels to be renewed through production at new factory,” R.Abdullayev said.
Under the primary feasibility study, the Factory was estimated at $400 million. In accordance with world practice 30% of the project cost will be financed at the expense of shareholders and 70% will be raised. At the same time STX will undertake project management and construct the factory under turnkey.
“Real parameters will be determined after preparation of a final feasibility study,” R.Abdullayev said.
Caspian Sea closureness makes construction of the factory over here justified. The sides are still going to construct tankers with displacement of up to 30,000 tons for four Caspian states (excluding Iran position of which is unknown).
The Project presentation should have been conducted in Baku before the end of 2007. The Factory will be able to produce whole spectrum of ships – from yachts to large tankers.
The Memorandum on Ship-Building Factory was signed in Seoul on April 24, 2007. Under the Memo, AIC is ready to acquire 25% equity stake in the project.
The Factory will be oriented to repair ships including tankers to carry Kazakh and Turkmen oil. That will be a single factory in Azerbaijan but its capacity will depend on portfolio of orders.
State Oil Company of Azerbaijan Republic (SOCAR) President Rovnag Abdullayev said the Memorandum has been signed between SOCAR, Korean STX and Azerbaijan Investment Company (AIC).
“According to the Memorandum SOCAR acquires 65% of the stake in the project, STX 25% and AIC 10%,” R.Abdullayev said.
STX that has initiated the project offers parity distribution of the project shares between all the shareholders – STX itself, Azerbaijan Investment Company (AIC), State Oil Company of Azerbaijan Republic (SOCAR), and Azerbaijan State Caspian Shipping Company (Kaspar).
Azerbaijan insisted that STX should acquire an equity stake of at least 35% of shares to make the latter to be more interested in the project operatorship and to raise more investments from abroad.
“The Factory will be situated nearby Heydar Aliyev Baku Deepwater Basics Factory obtained by SOCAR and both factories will be mutually complementary by orders and work. The new factory will produce all vessels necessary for shelf works. We need many ships. 27 vessel types are applied in Azerbaijan. Only SOCAR has 270 vessels to be renewed through production at new factory,” R.Abdullayev said.
Under the primary feasibility study, the Factory was estimated at $400 million. In accordance with world practice 30% of the project cost will be financed at the expense of shareholders and 70% will be raised. At the same time STX will undertake project management and construct the factory under turnkey.
“Real parameters will be determined after preparation of a final feasibility study,” R.Abdullayev said.
Caspian Sea closureness makes construction of the factory over here justified. The sides are still going to construct tankers with displacement of up to 30,000 tons for four Caspian states (excluding Iran position of which is unknown).
The Project presentation should have been conducted in Baku before the end of 2007. The Factory will be able to produce whole spectrum of ships – from yachts to large tankers.
The Memorandum on Ship-Building Factory was signed in Seoul on April 24, 2007. Under the Memo, AIC is ready to acquire 25% equity stake in the project.
The Factory will be oriented to repair ships including tankers to carry Kazakh and Turkmen oil. That will be a single factory in Azerbaijan but its capacity will depend on portfolio of orders.