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SOCAR’s consolidated debt reaches $7B (UPDATE)

Oil&Gas Materials 15 April 2015 18:26 (UTC +04:00)

Details added (first version posted on 17:01)

Baku, Azerbaijan, Apr.15
By Maksim Tsurkov - Trend:

The consolidated debt of Azerbaijani State Oil Company was around $7 billion as of January 1, 2015, SOCAR Vice-President for Economic Issues Suleyman Gasimov told reporters April 15.

He said that such amount of debt is consistent with SOCAR's financial strategy.

Obligations account for $1.5 billion of the total volume of the debt, while around $1 billion accounts for the short-term debt of SOCAR Trading for the purchase and sale of oil of the third countries, said the vice-president.

He went on to add that debt is the amount of $1 billion was formed within the projects in Turkey, while another $1 billion accounts for the debt to the State Oil Fund, as well as loans attracted to purchase a share in the project for development of Azeri-Chirag-Guneshli block of oil and gas fields, construction of Baku Shipyard.

Gasimov said that the company's debt is controlled, interests are paid on time, adding that the trust of the foreign investors in the State Oil Company is a proof of proper control.

Floatation of the next bond issue with maturity of 15 years in March, as well as high ratings from the international agencies proves the trust of foreign investors in SOCAR, according to the vice-president.

SOCAR includes production associations Azneft (the enterprises producing oil and gas onshore and offshore), Azerkimya (the chemical industry enterprises) and Azerigaz.

The company also has a number of processing enterprises, service enterprises, and institutions involved in geophysical and drilling operations.

SOCAR is the sole producer of oil products in Azerbaijan. It has two oil refineries and filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. SOCAR is the co-owner of the largest Turkish petrochemical complex, Petkim, and other assets in Turkey.

Moreover, currently, the company is carrying out work as part of ensuring the supply of Azerbaijani gas to Europe. In this regard, work is underway within the second phase of development of the Shah Deniz gas and condensate field, to expand the South Caucasus Pipeline, and projects are being developed to construct the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).

Edited by CN

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Follow the author on Twitter: @MaksimTsurkov

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