State Oil Fund of Azerbaijan allocated $1.2 bln to SGC projects so far

Baku. 7 March. REPORT.AZ/ State Oil Fund of Azerbaijan (SOFAZ) transferred 797.4 mln AZN or 495.2 mln USD to account of Ministry of Economy to provide funding for state owned part of Southern Gas Corridor CJSC (SGC).

Report informs, 2016 report of Cabinet of Ministers says.

It was noted that execution of this item features 33.9% of total funds envisaged in the budget: “Attraction by SGC of 991.1 mln USD as discount value from placement of denominated international bonds (Eurobond) in foreign currency based on state guaranty in international financial market, postponement to 2017 of second tranche for purchase of 10% share of “Shahdeniz” project, deferment of some expenditures within TANAP and TAP projects are reasons of incomplete execution of SOFAZ funds envisaged in budget”.

According to the report, 1 232.1 mln USD or 1 530.3 mln AZN have been allocated for funding Azerbaijan’s share in SGC projects during 2014-2016 within SOFAZ budget.

Notably, SOCAR has founded Southern Gas Corridor CJSC with 100 mln USD authorized stock capital, with state being 51% and SOCAR 49% stakeholders, by order of the President of the Azerbaijan Republic on 25 February, 2014, aiming at expanding Southern Gas Pipeline, ensuring management of Trans-Anatolian Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP). The article 2.1 of the order charges SOFAZ to provide funding for state-owned shares of the project and authorizes Ministry of Economy to manage them.