SOCAR plans to establish own trader company

Oil&Gas Materials 7 March 2006 15:33 (UTC +04:00)

The State Oil Company of Azerbaijan (SOCAR) plans to establish affiliated company, which will be involved in direct oil sale to potential consumers. At first the company is supposed to be found without commercial functions in London, SOCAR told Trend.

According to SOCAR, the company will be organized for SOCAR and work on the base of long-term contracts on delivery of Azerbaijani oil.

Perhaps, we will partially refuse from announcement of tenders for oil sale on spot-contracts (after launch of BTC pipeline) and work on the base of long-term agreements, the representative of SOCAR stressed.

The Company will probable be granted with commercial functions in the future, SOCAR noted.

At present SOCAR does not know exact terms of establishment of the body, as its organization requires unification of many issues with appropriate Azerbaijani departments.

Commission of BTC is planned in 2006. Preliminary capacity of the pipeline will comprise 25m tons with total 50m. From 2008 or 2009 Kazakhstan will also join BTC.