The State Oil Company of Azerbaijan (SOCAR) is planning to invest nearly $350m in a shipyard near the country’s capital Baku this year.

The oil and gas company, which has a 65% stake in the project, said the shipyard is scheduled to be completed in 2013, according to

The shipyard will be capable of building Panamax tankers with a carrying capacity of 500,000 barrels of crude oil and also repair up to 80 types of vessels a year.

SOCAR said partner companies in the shipyard project include Singapore rig builder Keppel Corporation (with a 10% stake) and Azerbaijan Investment Company (with a 25% stake).

Keppel will be responsible for the yard’s management and operation and will have the option to acquire an additional 10% stake in the next three years.