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SOCAR and E.ON agree on financial issues

Oil&Gas Materials 13 May 2011 15:15 (UTC +04:00)

Azerbaijan, Baku, May 13 / Trend E.Ismayilov /

The German E. ON and the State Oil Company of the Azerbaijan Republic (SOCAR) agreed on technical issues within preparations of a feasibility study on the Azerbaijani gas distribution system's reconstruction and modernization, a source in SOCAR's Azerigas PU said on Friday.

The source said the German company presented the concept.

The document was approved by the SOCAR.

"The company's representatives are expected to visit Baku soon," he said. "It is planned to coordinate the positions within the contract, to be signed between the parties."

He said the visit can take place this month. Despite the fact that the technical issues have been already agreed by the sudes, it is planned to agree the remaining areas, including financial issues.

The source said it is not excluded that the contract will be signed during the forthcoming visit of the E.ON representatives.

The gas system is the largest in the country and covers about 650,000 subscribers. About 90 percent of the existing infrastructure should be modernized.

The project may cost 800-900 million euro.

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