Azerbaijan Determines External Financing for Terminal Construction in Garadag
Azerbaijan, Baku, 14 June /corr. Trend I.Khalilova / French Societe Generale bank is prepared to provide $140mln credit for the construction of Sangachal-Garadagh oil and gas terminal, Riad Gasimov, Deputy Executive Director of Azerbaijan Investment Company (AIC), said on 13 June. The credit resources will be presented in two tranches - $40mln and $100mln.
According to him, the process of preparing the documents to receive the first tranche may be completed by September 2008. These funds are envisaged for realization of the first stage of the project, which includes construction of the terminal by the end of 2009.
The second phase will finish in three years after completion of the first phase. The second phase envisages constructing moorings, signing agreements with oil suppliers, especially from Kazakhstan, Turkmenistan. The transshipment capacity of the terminal at the initial stage will make up 5mln tons, with further increase up to 20-25mln tons.
According to Gasimov, the project is estimated at $175mln, with $36mln (was invested in capital of Sangachal-Garadagh Oil and Gas Terminal) being paid by Azersun Holding and AIC.
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. AIC will allocate $9mln according to the decision of the AIC Supervisory Board dated 29 June 2007.
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 on 13 June made up 0.8189 to 1 USD.
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