SOCAR signs delivery deal for €500m urea plant with Samsung

13 March 2013 11:24  [Source: ICIS news]

LONDON (ICIS)--The State Oil Company of the Azerbaijan Republic (SOCAR) has signed a contract with South Korea’s Samsung Engineering for the design, procurement and construction of a €500m ($649.4m) urea plant, SOCAR said on Wednesday.

The plant, with a capacity of 700,000 tonnes/year, would be constructed by Samsung on land near to the main site of SOCAR petrochemical subsidiary Azerikimya in Sumgait, Azerbaijan, it added.

SOCAR also has plans to construct a twin or similar urea installation in Georgia on land located between the ports of Poti and Kulevi on the Black Sea coast, for which it has requested free industrial zone status.

The contract for the plant was signed by SOCAR CEO Rovnag Abdullayev and Samsung Engineering CEO Ki-Seok Park in the Azerbaijani capital of Baku, SOCAR said.

The plant would be commissioned in late 2014 or early 2015, providing 500 jobs, the company added.

The cost of the plant construction would be covered by state funds sourced from the State programme on reliable food supplies for the population of the Republic of Azerbaijan in 2008-2015, SOCAR said.

SOCAR specialists have paid study visits to urea plants in Egypt, Jordan and Iran in preparation for the Sumgait and Georgia urea installation projects, it added.

($1 = €0.77)

By: Will Conroy
+44 20 8652 3214

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