SOCAR reveals amount of funds required to complete SGC project
Baku, Azerbaijan, Feb. 15
By Anvar Mammadov - Trend:
Azerbaijan’s state oil company SOCAR estimates the total spending required to complete the Southern Gas Corridor project at $2.7 billion, Fitch Ratings said in a message on Feb. 15.
Southern Gas Corridor (SGC) CJSC, a joint venture between SOCAR and Azerbaijan’s Economy Ministry, continues the key gas projects in the country, including the development of the Shah Deniz gas and condensate field, the expansion of the South Caucasus Pipeline, and the construction of Trans-Anatolian and Trans Adriatic gas pipelines (TANAP and TAP), according to the message.
SOCAR expects its share of overall funding to come below its 49 percent stake owing to financing raised by SGC internally (bonds issued to the State Oil Fund of Azerbaijan, SOFAZ) and externally, said the message.
ACG Extension Positive: In September 2017, the Azerbaijan government, SOCAR and international oil companies signed a contract to extend the production-sharing agreement (PSA) for the Azeri-Chirag-Gunashli (ACG) field until 2049.
ACG is the main oil field in Azerbaijan, accounting for 76 percent of total Azeri oil output in 2016.
Fitch Ratings has affirmed State Oil Company of the Azerbaijan Republic's (SOCAR) Long-Term Issuer Default Rating (IDR) at 'BB+', Short-Term IDR at 'B' and senior unsecured rating at 'BB+'. All ratings have been removed from Rating Watch Negative (RWN). The Outlook is Stable. SOCAR's rating is aligned with the rating of Azerbaijan (BB+/Stable).