IBA issues $800K to SOCAR to modernize oil refinery, Azerikimya
By Aynur Karimova
The International Bank of Azerbaijan (IBA) has allocated 1.29 billion manats ($801.1 million) to the state energy company SOCAR, reads a report by the Cabinet of Ministers on the results of 2015.
The funds were allocated for modernization and reconstruction of the Baku oil refinery named after Heydar Aliyev and Azerikimya Production Union of SOCAR.
The report reads that two new facilities engaged in cleaning sulfur compounds and hydrogen enrichment were constructed and put into operation in 2015 to increase the production of raw materials for the production of consumer products, and improve the quality of the Azerikimya PU.
SOCAR, which includes production associations Azerneft, made up of companies involved in the production of onshore and offshore oil and gas, Azerikimya, chemical industry enterprises, and Azeriqaz gas distribution, is involved in exploring oil and gas fields; producing, processing, and transporting oil, gas, and gas condensate; marketing petroleum and petrochemical products in the domestic and international markets; and supplying natural gas to the industries and public in Azerbaijan.
Azerikimya PU is a part of SOCAR, which includes the plants of ethylene-polyethylene, surfactants, Organic Synthesis, mechanical repairs, the "Kimyaelmitedgigatlayihe" Institute, the repair and construction department, transport and special equipment department and a storage facility.
Azerbaijan is keen on developing domestic oil processing facilities. In this regard, the government has announced the construction of the Oil and Gas Processing Complex and modernization of Baku oil refinery.
SOCAR implements the project on upgrading the Baku oil refinery named after Heydar Aliyev to meet the demand in the local market. Thanks to the implementation of this project, the country's demand in the gasoline of Euro-5 standard will be fully met.
The modernization process will be completed by 2020. After the completion of the reconstruction, the processing capacity of the refinery will increase from 6 million to 7.5 million tons of oil per year. The modernization is estimated at $1 billion.
SOCAR announced the liquidation of Azneftyag oil refinery and its merger with the Heydar Aliyev Baku Oil Refinery in January 2015.
This decision was taken as part of the work to improve and optimize SOCAR’s structure.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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