TODAY.AZ / Business

SOCAR gained 2,3% advantage after purchasing its share of ACG

28 April 2006 [14:56] - TODAY.AZ
Purchasing $750m of syndicated credit from Azerbaijan Limited (ACG), was significant success for SOCAR, the company did not have its own financial rating.

The given deal allowed the company to gain financial means and trust of the international financial institutes, the financial vice-president of SOCAR, Shanin Mustafayev stated, according to Trend.

The given credit has been submitted without state guarantee.

After securing the credit, SOCAR managed to purchase its investment rights in Azeri-Chiraq-Guneshli (ACG) project exploitation. Previously, Exxon Azerbaijan Limited and Turkiye Petrolleri shared the 10% investment rights of SOCAR between themselves, receiving equal amounts of oil. Both companies invested more than $1bln 150m in the project, Mustafayev said.

AzACG bought Exxon Azerbaijan Limited and Turkiye Petrolleri shares for $750m. Part of the sum will be allocated to the rights purchase and a part on investments.

According to the credit agreement, oil previously transported by Exxon Azerbaijan Limited and Turkiye Petrolleri will be sold to Glencore and Select Energy Trading (SET). The cost oil will be allocated to the special BNP Paribas account and spent for ACG project investments in cash call.

The credit will be provided at libro+1, 7% rate. It has to be paid back within 3-5 years depending on world oil prices. Whereas, Exxon Azerbaijan Limited and Turkiye Petrolleri will receive back their previous investments at 4% rate. Thus, SOCAR managed to get positive 2, 3% as result of deal.

URL: http://www.today.az/news/business/25621.html

Print version

Views: 1501

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: