SOCAR goes on negations with potential investors by OGPC

​SOCAR still hopes for the realization of the project of construction of a new oil and gas processing plant and an oil chemicals complex (OGPC) in the Garadag district of Baku, the Vice-President for strategic development T. Gakhramanov said.

This project is very important for us. But meanwhile active works on the realization of this project are frozen due to low oil prices. However, negotiations with potential investors go on.

Shell, a chemicals subdivision of Total and a number of companies from Saudi Arabia showed interest in the project in January 2015.

But in April-May 2015 these companies refused from their intentions. It was due to the price fall for polyethylene and polypropylene from $1.7 thousand/ton to $900, now the price is $1.1 thousand. The main factor for the realization of the project is the profitability rate. If it is 20% and higher, the companies are interested in it. If it falls below 15%, the interest is falling. The negotiations with Mitsui go on. HQC was also interested, T. Gakhramanov said.