SOFAZ prepares to finance large energy project in Turkey

Photo: SOFAZ prepares to finance large energy project in Turkey / Oil&Gas

Istanbul, Turkey, Dec. 5

By Abbas Akhundov - Trend:

The State Oil Fund of Azerbaijan (SOFAZ) is preparing to start financing of a share of the state's participation in the Trans-Anatolian gas pipeline project (TANAP), which intends to enable the transportation of Azerbaijani gas through Turkey to Europe, Executive Director of Azerbaijani State Oil Fund Shahmar Movsumov said on Dec.5.

Movsumov made the remarks at the third Caspian Forum in Istanbul, told the journalists on Dec.5.

"The Oil Fund has financed a share of state's participation in the Baku-Tbilisi-Ceyhan pipeline project, and this year began to invest in the construction of STAR oil refinery in Turkey. In the future we will continue to invest in major infrastructure projects in Turkey," Movsumov said.

As Movsumov noted previously, SOFAZ has directed 800 million manat (about $1.02 billion) to the implementation of TANAP construction project.

The State Oil Fund has already allocated $475 million in the project of construction as part of Azerbaijan's funding for construction of new refinery of SOCAR (State Oil Company of Azerbaijan) in Turkey.

In total, the fund will allocate $760 million in the implementation of the project.

SOFAZ was established in 1999. Based on SOFAZ's regulations, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

SOFAZ's main purposes include accumulation of funds and placement of its assets abroad to minimise the negative impact on the economy and prevent 'Dutch disease', to ensure savings for future generations and to maintain the current socio-economic standards of Azerbaijan.
The official exchange rate is 0.7843 AZN/USD on Dec.5.

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