388.06
Rosneft and Itera in talks for Armenian Plant
3 minute read
YEREVAN, MAY 7, ARMENPRESS: The Russian oil majorRosneftandgas producer Itera are intalks with the Armenian authorities tomake investments in the Armenia's largest petrochemical plant, Nairit, which specializes inthe production ofchloroprene rubber, as reported by Armenpress, quoting the Russian Vedomosti.
Asource inItera confirmed that thecompany was considering "different variants ofparticipating inthe project," adding that afinal decision may be made bythe end ofMay. The representatives of the RosneftandItera do not comment on this.
In2011, the Armenian government rejected anItera proposal forthe plant anddrafted its own plan ofinvestment inNairit's production. “The Ministry of Energy and Natural Resources of the Republic of Armenia has developed its investments program for the Nairit’s reconstruction and development”, - stated the Press Secretary of the Ministry of Energy and Natural Resources of Armenia Lusine Harutyunyan, adding that the program was presented toRosneft.
Rosneft refused tocomment onthe government plan and reminds that the President of the company Igor Sechin and the Deputy President of Itera Gagik Martirosyan visited Armenia in the beginning of April. “If Rosneft specialists consider the program attractive, the sides will begin the negotiations on the participation of the company in the project”, - stated the representative of the Ministry of Energy and Natural Resources of the Republic of Armenia.
If Rosneft and Itera agree to participate in the modernization of Nairit, Armenia will get the credit of 400 million USD from the Eurasian Development Bank for the refinancing of the debts of the plant and its modernization.
Nairit, which is owned bythe British Rhinoville Property Limited andthe Armenian government, which own 90 percent and10 percent ofthe company, respectively, faces bankruptcy with adebt of120 million USD to130 million USD.
Production atthe plant stalled inApril 2010 when gas prices skyrocketed from54 USD to180 USD per 1,000 cubic meters, which made Nairit's operations unprofitable.
Inthe 1980s, theplant produced 10 percent to12 percent ofchloroprene rubber inthe world.
