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Direct Funds from Investment Bank to be Attracted for Construction of Garadag Oil and Gas Terminal

Oil&Gas Materials 22 April 2008 17:27 (UTC +04:00)

Azerbaijan, Baku, 22 April/ corr Trend I.Khalilova / The Azerbaijan Investment Company (AIC) highlights progresses in attracting foreign investments to finance the project on building the Sangachal-Garadag oil and gas terminal, AIC Executive Secretary, Anar Akhundov, said on 22 April.

"It was good work experience for AIC in attracting direct finances and we are about to receive some concrete proposals from one investment bank," Akhundov said, saying that bank's name will be announced in the near future.

In general, nearly $160mln will be attracted to finance the project and about 30-40% of this amount is enough for realization of the first stage of the project. At present, discussions are being held on such amount of funds, but the requisite of attracting whole amount is also taken into consideration.

According to Akhundov, AIC has already signed a shareholder agreement and allocated $9mln, approved by the AIC Supervisory Board on 29 June 2007, for the project.

The first phase of the Sangachal-Garadag oil and gas terminal will take 12 months for the completion, and 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, capacity of the terminal will be 50 mln tons a year.

Key operator in the project is Kavkaztransservis (part of Azersun Holding). As per the agreement between AIC and Kavkaztransservis, the company acquired 25% in the project.

Garadag terminal will receive limited kinds of products (condensate and oil) in large volumes. In addition, the terminal is envisaged to receive raw oil from Kashagan field which will be transported to the terminal on shore of the Black Sea and Port of Ceyhan via Baku-Tbilisi-Ceyhan pipeline.

Official rate of AZN made up 0.8286 to 1 USD.

The correspondent can be contacted at: [email protected]

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