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Azerbaijani State Oil Fund to start financing new projects

Oil&Gas Materials 21 September 2012 20:26 (UTC +04:00)

Azerbaijan, Baku, Sept. 21 / Trend E. Ismayilov /

The Azerbaijani State Oil Fund (SOFAZ) expects to start financing new projects from 2013, SOFAZ head Shahmar Movsumov told media on Tuesday.

He said that new projects will mainly fall to the oil and gas sector.

"The names of the projects will be announced after the budget is prepared," he said.
The State Oil Fund of Azerbaijan (SOFAZ) considers possibility of becoming one of the investors of construction of Trans-Anatolian gas pipeline (TANAP), SOFAZ head Shahmar Movsumov said earlier.

On June 26, Azerbaijan and Turkey signed an intergovernmental agreement on implementation of the Trans-Anatolian gas pipeline (TANAP) project.

In December 2011, Azerbaijan and Turkey signed a memorandum of understanding to establish the consortium that will build a gas pipeline to supply gas from the Shah Deniz gas field to Europe through Turkey. BOTAS has a 20 per cent stake in TANAP, while SOCAR holds 80 per cent in the project.

The initial capacity of the pipeline will be 16 billion cubic meters. About six billion cubic meters of the volume will be supplied to Turkey, while the rest will be transported to Europe.
He added that SOFAZ considers the opportunity of financing the project to expand broadband Internet and to bring optics to every house.

"This project is very important," he said. "This project is being considered. Perhaps, it will be reflected in the fund's budget for next year."

The development of broadband Internet in Azerbaijan is the most ambitious task of the Azerbaijani Communication and IT Ministry. It is planned to expand the optical links and bring them to the end user by late 2012. It is planned to spend $ 342 million till 2015 within the project. The project is considered to be quite profitable and will allow returning investments in the future.

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