Azerbaijan, Baku, Nov. 11 / Trend E. Ismayilov /
SOCAR does not think it reasonable to issue Eurobonds due to the crisis in Europe, SOCAR president Rovnag Abdullayev told media on Friday.
"At present, our specialists conduct meetings with European banks in connection with the plans to issue Eurobonds," Abdullayev said. We would like to draw loans by placing Eurobonds by the end of the year. But it would be inappropriate during crisis. It is necessary to deliberately approach to the placement of its securities in international capital markets during crisis."
He said that the issue of Eurobonds is a preparatory step for SOCAR to implement major investment projects. The drawn funds may be used in some projects.
"But Eurobonds, planned to be issued by SOCAR to the amount of $ 500 million, are required for SOCAR's image," he said.
The Royal Bank of Scotland (RBS), City bank and Deutsche bank act as the organizers of the first issue of SOCAR Eurobonds.
SOCAR's oil and gas enterprises produced 7.28 million tons of oil and more than 7 billion cubic meters of gas in 2010.
SOCAR and foreign partners are involved in such major projects as the development of the block of Azeri-Chirag-Guneshli oil and gas fields and Shah Deniz gas condensate field in the Caspian Sea.
SOCAR includes Azneft production association (the companies producing oil and gas onshore and offshore), "Azerkimya" industrial association (chemical enterprises), Azerigaz industrial association (gas distribution).
SOCAR is the only producer of oil products in the country (it has two refineries on its balance), and also owns petrol stations in Azerbaijan, Georgia and Ukraine. SOCAR is co-owner of the largest Turkish petrochemical complex Petkim. The company carries out the oil trade in various regions of the world through SOCAR Trading.