Member companies of the Caspian-European Integration Business Club (CEIBC) met with Suleyman Gasymov, Vice President for the Economic Issues of the State Oil Company of Azerbaijan Republic (SOCAR), and Tofig Gahramanov, Vice-President for Strategic Development of SOCAR, in Baku. The parties discussed prospects of economic cooperation with CEIBC member companies, prospects on development of the project related construction of the new oil&gas processing and petrochemical complex as well as possible participation of the CEIBC member companies in it.
At the sessions of the Club the guests highly evaluated CEIBC’s initiatives for such meetings are contributing into the maintenance of the business-to-government dialogue, exchange of opinions, and discussion of proposals on prospects for new projects’ development.
According to S.Gasymov, today SOCAR is on the way to turning into a big international company and builds activity as a vertically integrated company starting from the process of exploration and production on fields right up to sale of oil and petrochemical industry products. He spoke about the modernization of SOCAR structure and reminded that Azerigaz and Azerikimya entered SOCAR as production units in 2009 and 2010 respectively.
Speaking about branched network of main oil and gas pipelines for transportation of energy resources, he noted that 22 enterprises operate within the structure of SOCAR today. Apart from this, SOCAR represents interests of Azerbaijan in more than 32 PSAs. The most significant of them are the contracts on development of Azeri-Chirag-Gunashli and Shah Deniz fields.
He also noted that reformation of SOCAR’s structure enabled to solve some problems with payments and reduced the tax load of SOCAR enterprises. S.Gasymov noted that the assets of the State Oil Company of Azerbaijan Republic total $17 bln. Besides, about $2 bln falls to the share of attracted funds.
S.Gasymov spoke in details about the placement of nominal securities at London stock exchange and noted that the prospect of placement of securities in the domestic market was under consideration as well.
During the CEIBC session T. Gahramanov spoke about the results of the April forum held in Baku dedicated to construction of the new oil-gas processing and petrochemical complex with participation of over 150 companies from 30 countries worldwide and over 450 delegates. T.Gahramanov mentioned a 130-year history of oil refining industry of Azerbaijan. According to him, if the project cost of the new complex varied within $12-13 bln ($15 bln bank interests inclusive) during the forum the sum comprised $14-15 after inclusion of certain units and other changes ($16-17 together with bank interests for future credits). “As far as the configuration of the complex is concerned, the capacity of the initial oil and gas processing will total 10 mln tons and 10 bcm respectively. A petrochemical block and an energy block with the capacity of 250 mW will be built”, he said and noted that 40 processing units are to be installed in the complex. 17 of them need licensing.
SOCAR Vice Presidents Suleyman Gasymov and Tofig Gahramanov were awarded the CEIBC honorary membership certificates. Certificates were also given to new CEIBC member companies. Executives of companies and representatives of a number of diplomatic agencies accredited in Azerbaijan participated in CEIBC meetings.
