SOFAZ Head Shakhmar Movsumov Met Companies CIBC-Members

Oil&Gas Materials 10 October 2006 20:21 (UTC +04:00)

In order to make a business-to-government dialogue, a meeting between the companies-members of the Caspian Integration Business Club (CIBC) and Shakhmar Movsumov, Executive Director of the State Oil Fund of Azerbaijan (SOFAZ), Trend reports.

During the meeting, Mr. Movsumov spoke in details about the activity currently carried out by the Fund and projects on the territory of Azerbaijan financed at the expense of funds accumulated in SOFAZ. According to him, up to date, the Fund has accumulated as much as $1.6 b. The Fund was established in 1999 and has gained totally $3 b. up to now. According to S. Movsumov, within the next 20 years, Azerbaijan`s economy will receive $200 b.

Speaking of the SOFAZ's activity in 2006, Mr. Movsumov pointed out that until the end of 2006, the amount of investments to infrastructure projects would make up nearly $140 m. $300 m. have been used to finance the state-owned interest in the Baku-Tbilisi-Ceyhan (BTC) project. According to him, next year, the BTC project will bring the first profit.

SOFAZ accumulates incomes gained from sales of profit oil and ensures their safety. SOFAZ's funds can be used to implement large strategic projects. Answering the questions about financing of concrete projects asked by CIBC members, S. Movsumov pointed out that the Fund finances the equity capital of the Investment Company which may take interest of these projects. Up to date, the Fund has paid 40 m. AZN out of the projected 90 m. AZN.

The companies from Russia, Kazakhstan, Turkey, Georgia, Ukraine, Latvia, Iran and other countries took part in the CIBC event.

As Telman Aliyev, the President and Chief Executive Officer of CIBC reported to CIBCNews, this meeting was one of those events held within the preparation of companies-CIBC members for the meeting with Azerbaijan`s PresidentIlham Aliyev.