Azerbaijan in Talks with Foreign Banks to Attract Extra Resources for Oil and Gas Terminal Construction

Oil&Gas Materials 15 February 2008 20:25 (UTC +04:00)

Azerbaijan, Baku, 15 February / corr Trend I.Khalilova / The Azerbaijan Investment Company (AIC) and the Caucasus Transport Service, a member of a group of companies Azersun Holding, have launched negotiations with the foreign banks in order to get extra loan recourses for building the Sangachal-Garadag oil and gas terminal, said AIC Deputy Executive Director, Riad Gasimov.

Negotiations are held with Society General, BNP Paribas, Commerce Bank and Yapi Credit.

The total budget of the project exceeds $170 million, including $36.097mln to be covered by Azersun and AIC, and the rest $130mln to be attracted from the international banks. The Sangachal-Garadag oil and gas terminal has been established for the construction of the terminal.

Construction work has begun at the terminal and AIC has transferred his share of financing ($9mln). However, major part of the work was done by Azersun before we invested, Gasimov said.

The terminal will be put into exploitation, approximately by the end of the next year. At the initial stage, the volume transportation will depend on the negotiations between Kazakhstan and Turkmenistan and designing will be carried out depending on the results of negotiations. The project was designed for 5 million cub m of gas, but it is difficult to say concretely the volume of gas, because this is an oil and gas terminal, Gasimov said.

There will be gas reservoirs at the gas terminal to pump in afterwards, as it was included in the concept. The gas volumes are still to be defined, the AIC deputy director.

The first phase of the Sangachal-Garadag oil and gas terminal will take 12 months for the completion, and earlier its discharge capacity was designed at the level of 5 million tons. The second phase will finish in 2.5 years and its power will attain 10 million. The construction of the terminal will be carried out in 3 phases. After the implementation of the third phase the capacity of the terminal will be 50 mln tons a year.

The Sangachal-Garadag oil and gas terminalwill reprocess condensate lifted fro m the Azeri-Chiraq-Gunesli fields. It will be allocated for the admission of narrow assortments (condensates and black products), but in big volumes.

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