Keppel in jv for new shipyard in Azerbaijan

The new SOCAR-Keppel Shipyard will be developed over a period of two to three years with an investment of $386 million. The joint venture agreement will be signed with Keppel O&M taking a 10% share of the yard, and SOCAR and AIC the other 65% and 25% respectively. Keppel O&M will be responsible for the management and operation of the yard, and will have the option to acquire another 10% stake in the next three years.

The new yard is designed to undertake construction of a variety of vessels ranging from offshore support vessels to tankers, as well as ship repair and conversion.

SOCAR and Keppel came together 13 years ago to form the Caspian Shipyard Company in Baku and have delivered many landmark projects in the Caspian Sea. Strategically located along the East-West energy corridor of the Caspian Sea region, the new yard will be critical in helping to meet the growing needs of the local oil industry. It will contribute towards the unlocking of Azerbaijan’s vast offshore hydrocarbon potential as part of the republic’s oil strategy, and support the renewal of SOCAR’s vessel fleet.

Spanning a 1,630m waterfront, the yard, when completed, will be able to undertake 80 to 100 repairs and conversions per annum and is estimated to achieve an average annual steel throughput of 25,000 tonnes when operating at full capacity. When fully operational, the new yard will create employment opportunities for some 2,000 people.