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Azerbaijani Investment Company Receives Preliminary Agreement from International Monetary Fund to Finance Project to Create Oil and Gas Sangachal-Garadag Terminal

Oil&Gas Materials 7 September 2007 15:26 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / Azerbaijani Investment Company Ltd (AIC) commenced negotiations with investors for financing the project to create an oil and gas Sangachal-Garadag terminal, Anar Akhundov, the executive director of AIC, said on 7 September.

The preliminary agreement was received from a range of investors, Akhundov said. The Asian Development Bank, Islamic Bank of Development and various foreign financial institutions are interested in the project.

The US company of Nexant gave a preliminary assessment of the project at $150mln. The fee of the project increased due to increased capacity of the terminal. Initially the capacity of the terminal should have been 12mln tons and there were plans to increase the volume by 40mln tons in the future.

The operator of the project is Caucasustransservice which joins Azersun Holding.

The aim of the investment project is to construct an oil and gas terminal on the territory of Garadag region of Baku City. There are plans to accept crude oil from Kazakhstan and Turkmenistan and to transport via the terminals in the Black Sea coast to Ceyhan port via Baku-Tbilisi-Ceyhan.

AIC will invest $9mln into the project by the decision of the Supervision Council.

In compliance with the agreement signed between AIC and Caucasustransservice, AIC will receive 25% of the oil and gas from the Sangachal-Garadag terminal.

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