Southern Gas Corridor’s capitalization increases by over 7 times
Baku, Azerbaijan, July 29
By Azad Hasanli - Trend:
The Southern Gas Corridor CJSC's registered capital increased up to $725 million upon the decisions of the Supervisory Board and the Shareholders' Meeting, the State Oil Fund of Azerbaijan (SOFAZ) said.
The company's initial capital amounted to $100 million. But its capital increased to $300 million in February 2015 as a result of changes in the nominal share of the company.
"SOFAZ transferred $318.75 million to the treasury account of the country's Ministry of Economy and Industry in the first half of 2015," the statement said. "As a result, the share of the fund's capital of the company has reached $369.75 million (51 percent)."
According to a decision of the state commission, established upon a decree of Azerbaijani President Ilham Aliyev, the authorized capital of the Southern Gas Corridor CJSC increased once every two months in order to maintain the ratio of shares of the Ministry of Economy and Industry and SOCAR.
SOFAZ allocated $ 2.5 billion to the company to finance the stake in the project in 2014.
Azerbaijani President Ilham Aliyev signed a decree on the establishment of the company in February 2014 for the effective project management of the second stage of Shah Deniz gas condensate field development, the expansion of the South Caucasus gas pipeline, Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
SOFAZ was instructed to ensure equity funding in the company that is in direct state ownership.
The funds to be delivered to the company to finance the equity will be ensured in the form of long-term investments in terms of return.
The Southern Gas Corridor is a project that will enable Europe to diversify its sources of hydrocarbon supply and boost energy security and Azerbaijan - to get a new market in the face of Europe.
Edited by CN