SOCAR to obtain international credit for Shah Deniz

Oil&Gas Materials 23 June 2006 17:18 (UTC +04:00)

The State Oil Company of Azerbaijan (SOCAR) is talking to some banks for obtaining a credit to repay SOCARs debt to Total and EBRD under Shah Deniz project, Trend eports quoting Rovnag Abdullayev, President, SOCAR.

This credit will be directed to repayment of funds Total and EBRD issued to Azerbaijan to cover SOCARs stake in this project, he said. Three out of nine European banks have been selected to date and are currently being talked to. В"The credit is suggested to be syndicated. This is an evidence of international financial institutions trust in SOCARВ", - Abdullayev said.

SOCAR President said this credit is issued on the better terms than the previous issued earlier to repay stake in ACG project.

Earlier, Azerbaijan (ACG) Limited (AzACG) obtained a syndicated credit in amount of $750mln. This credit was issued without a governmental security. Upon receiving this credit, SOCAR redeemed its entitlement to invest in ACG project. Before, Exxon Azerbaijan Limited and Turkiye Petrolleri A.O. shared 10% entitlement for investment in ACG. The companies invested in total $1.15bn. Having obtained the $750mln credit, AzACG redeemed this entitlement from Exxon Azerbaijan Limited and Turkiye Petrolleri A.O.

The credit is issued on terms Libor +1.7%. It shall be repaid in 3 to 5 years depending on global oil price.