SOCAR received first tranche of the loan from International Bank

Baku. 27 October. REPORT.AZ/ State Oil Company of Azerbaijan Republic (SOCAR) has received the first tranche of the loan from the International Bank of Azerbaijan (IBAR) of total amount of 1,860 billion AZN. Report informs, Vice-president of SOCAR on economic issues, Suleyman Gasimov told reporters.

S.Gasimov stated that, amount of the tranche provided on the reconstruction work was 69 mln. AZN: "The amount will be directed to the reconstruction of Baku Oil Refinery named after Heydar Aliyev. In general, to carry out reconstruction work will be involved in a loan of 1.290 billion manats."

According to S.Gasymov, 600 mln. AZN of loan provides for the drilling of wells in "Bull", "Guneshli". He noted that the first tranche of 200 mln. AZN and it was recently attracted 120 mln. Manat.

Note that there is an order of the Cabinet to raise SOCAR loan from the IBA, and the State guarantee is the Ministry of Finance. Repayment of the loan, aimed at drilling operations will be carried out through the implementation of well production and repayment of the amount spent on reconstruction - within 10 years from the state budget in the form of contributions to increase the authorized capital of the company. The loans are long-term, and the term of repayment of the loan for the reconstruction of extended on concessional terms from 3 to 10 years, oil and gas extraction - is provided for 5-6 years.