The $470m first phase of the project, a jointly-developed shipbuilding yard from Keppel Offshore & Marine (Keppel O&M), State Oil Company of Azerbaijan Repbulic (SOCAR) and Azerbaijan Investment Company (AIC), is expected to achieve an average annual steel output of 25,000 tons with capacity for up to 100 repairs and conversions per year.
Baku Shipyard has already attracted contracts worth $50m, with discussions underway for further work.
Keppel O&M has a 10% share in the new yard, with SOCAR and AIC owning the 65% and 25% respectively. Management and operation of the yard will be handled by Keppel O&M.
The new yard adds to Keppel's existing presence in Azerbaijan, Caspian Shipyard Company, which it has been operating since 1997 in a joint venture with SOCAR.
Tong Chong Heong, ceo of Keppel O&M commented, "the inauguration of Baku Shipyard signals the opening of a new and additional chapter in the long-standing partnership between SOCAR and Keppel O&M. Our participation in the yard demonstrates our commitment to be a long-term solutions provider for Azerbaijan."
"We are very happy that our partnership with Keppel O&M has once again borne fruit with the successful opening of Baku Shipyard. With the strong growth potential in Azerbaijan's oil and gas sector, we believe that Baku Shipyard is well placed to support this growth and contribute to the country's economic development," added Rovnag Abdullayev, president of SOCAR.
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