Azernews.Az

BAKU – Azerbaijan has signed an agreement with Singapore’s Keppel on establishing a joint venture to build a shipyard in Baku, the Azerbaijani state energy firm SOCAR said Monday.

Under the contract, inked in Singapore on Friday by SOCAR and the Azerbaijan Investment Company (AIC), SOCAR holds a 65 percent in the Baku Shipyard, while AIC holds 25 percent, and Keppel Offshore & Marine - the remaining 10 percent. Keppel also reserves the right to buy another 10 pct over the next three years.

A Memorandum of Understanding on the shipyard construction was signed by the parties in late 2009. In March 2010, the groundbreaking ceremony of the plant was held in Baku and attended by President Ilham Aliyev.

Dutch Royal Haskoning and TTC companies are currently designing the project.

The shipyard is to be commissioned in June 2013. It will have the capacity to build four 15,000-ton tankers and four supply and tow vessels as well as repair 80-100 ships per year.

According to initial estimates, the project is valued at $300-350 million. The facility is to create up to 2,000 jobs.

The enterprise is expected to have no matches in the entire region, and it may take orders for building ships not only from domestic customers but also from other countries.

Keppel Offshore & Marine is one of the largest offshore and marine groups in the world. The Group, a wholly-owned subsidiary of Keppel Corporation, was established in 2002.