SOCAR restructures subsidiary company

The State Oil Company of Azerbaijan (SOCAR) is restructuring its subsidiary, SOCAR Midstream Operations (SMO).

According to Report, which cites the Vergilər newspaper of the State Tax Service, a new entity, SOCAR Midstream Gas Operations (SMGO), is being spun off from SMO.

As a result of this reorganization, SMO's charter capital will be reduced from 59.501 million manats (over $35 million) to 1,000 manats ($588) while its rights and obligations will be transferred to SMGO according to a separation balance sheet.

SOCAR Midstream Operations was originally established in 2015 to represent Azerbaijan's strategic interests in the management of export oil and gas pipelines.

The newly formed company, SMGO, has not yet been officially registered.