Azerbaijan, Baku, 16 July / Trend corr I.Khalilova/ "Azerbaijan Investment Company (AIC) OJSC is negotiating with several banks to draw in funds for construction Sangachal-Garadag oil & gas terminal," AIC Chief Executive Anar Akhundov said on15 July. Prior to the statement, $140mln had been reported to be drawn in from one bank alone - France's Societe Generale.
"The negotiations are at final stage and we hope to sign an agreement in near future. Before agreement has been signed, I cannot flatly state that funds will be borrowed from Societe Generale," Akhundov said.
According to chief executive, large fiscal institutions and situation in the world market are very unsteady at the moment, volatility is very high. Therefore, all negotiations regarding borrowing are corrected from time to time.
Along with negotiations, construction is underway through the funds allotted by shareholders of the terminal. The project is estimated at $175mln, with $36mln (invested in capital of Sangachal-Garadagh oil & gas terminal) being paid by Azersun Holding and AIC.
Key operator in the project is Qafqaz Trans Service (part of Azersun Holding). As per the agreement between AIC and Qafqaz Trans Service, the company acquired 25% in the project. AIC allocated $9mln according to the decision of the AIC Supervisory Board dated 29 June 2007.
These funds are envisaged for realization of the first stage of the project, which includes construction of the terminal by the end of 2009.
The second phase will finish in three years after completion of the first phase. The second phase envisages constructing moorings, signing agreements with oil suppliers, especially from Kazakhstan, Turkmenistan. The transshipment capacity of the terminal at the initial stage will make up 5mln tons, with further increase up to 20-25mln tons.
Garadag terminal will receive limited kinds of products (condensate and oil) in large volumes. In addition, the terminal is envisaged to receive raw oil from Kashagan field which will be transported to the terminal on shore of the Black Sea and Port of Ceyhan via Baku-Tbilisi-Ceyhan pipeline. Although, oil from Kashagan is expected to be produced not earlier than 2011, shipbuilding production may be developed in that period, new vessels with high capacity may be ordered, which are necessary for Azerbaijan to implement transportations in the region.
On 15 July, official exchange rate totalled 0.8051 AZN/USD.
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