The State Oil Company of Azerbaijan Republic (SOCAR) is about to sign a credit agreement with a number of European banks on obtaining of means to buy out its share in project of development of the gas-condensate field of Shakhdaniz to finance it by itself, SOCAR President Rovnag Abdullayev exclusively told Trend today.
According to him, the credit will be granted from three European banks. However, what banks they are will be called during the signing. According to R. Abdullayev, those banks which have already granted credits to SOCAR on buying out of the financing of its share in the Project of Azeri-Chiragh-Gunashli are not among the new ones. That speaks that banks compete with each other in granting of the credit to SOCAR, and once more points out that the company has gained different financial institutes` confidence.
According to R. Abdullayev, the terms of financing will be much better than in those ones that of Azeri-Chiragh-Gunashli. This credit will be directed for offsetting of the debt of SOCAR to the French Total and the European Bank of Reconstruction and Development, for giving back of means the bank and the company granted to Azerbaijan to finance its share in the project. The new credit will be syndicated. The obtaining of the credit will allow SOCAR to get positive surplus against the payment of percentage to Total and EBRD.
Earlier the Company of Azerbaijan (ACG) Limited (AzACG) obtained a syndicated credit at the volume of $750 m. The credit was granted without a security against the government. With this credit was obtained, SOCAR bought out its right to invest within the Project of Azeri-Chiragh-Gunashli,. Earlier Exxon Azerbaijan Limited and Turkiye Petrolleri JSC divided the SOCAR`s 10-per-cent right of its investment within the Project of Azeri-Chiragh-Gunashli on equal parts and have invested means to the Project in place of SOCAR themselves. Instead of this they have received oil volumes according to their interests. During all the period, the two companies have invested $1,150 m. Having obtained a $750 m. credit, AZACG bought out this right from Exxon Azerbaijan Limited Рё Turkiye Petrolleri JSC. The part of the means have already directed to buy this right out, the other one will be used on the direct investment of the Project of Azeri-Gunashli-Chiragh. According to the credit agreement, the oil earlier exported by Exxon Azerbaijan Limited and Turkiye Petrolleri JSC will be sold to the Companies of Glencore and Select Energy Trasing (SET) by AzACG. The cost oil (the receipts of this oil) will be put on the special account in the Bank of BNP Paribas which is the organizer and gua
rantor of the credit to AzACG, wherefrom investments to the Project of Azeri-Chiragh-Gunashli will be realized on cash call.
The credit is granted on the terms of Libor +1,7 per cent.. It will be repaid within 3-5 years against the World oil price. According to the agreements, the investments of Exxon Azerbaijan Limited and Turkiye Petrolleri JSC have been repaid on the rate of 4 per cent. Thus, the obtaining of the credit allows SOCAR to get positive surplus at the volume of 2,3 per cent.
SOCAR President: International Banks` Confidence in SOCAR Continually Rises
