Azerbaijan State Securities Committee registered primary issue of shares of company created to implement Shah-Deniz-2

The Azerbaijan State Securities Committee has registered the primary issue of shares of the closed-type joint stock company (JSC) Southern Gas Corridor.

In particular, it has registered 100 regular nominal shares of Southern Gas Corridor in the value of $1 million each, reads the information posted on the official web site of the Committee. Therefore, the authorized capital of Southern Gas Corridor will total $100 million. The shares will be placed through a closed subscription.

In February 2014 Azerbaijani President issued a decree on the measures to implement the Phase 2 of Shah-Deniz project and other projects aimed at creation of the Southern Gas Corridor and SOCAR gas been charged with efficient management of Shah-Deniz-2, TANAP and TAP and established JSC with the authorized capital of $100 million. 51% shares of JSC will be owned by the government and 49% by SOCAR.

SOCAR will be in charge of handing over shares of JSC in the projects. SOFAZ has been instructed to fund shares of JSC, which are owned by the government. SOFAZ will also have to ensure long-term investments into the JSC on condition of return of the funds required for funding of shares in the projects passed on to JSC.

On December 17, 2013 the partners of the project for development the offshore gas condensate field Shah-Deniz made a final financial decision on the Shah-Deniz Phase-2, which is estimated at $28 billion. Gas extraction on the Shah-Deniz-2 is planned to begin in 2018. In 2018 it is planned to transport gas to Turkey and in 2019 to the European market. Annual gas extraction on the Shah-Deniz-2 will total 16 billion cub.m., of which 10 billion cub.m. will be delivered to Europe and 6 billion cub.m. to Turkey.—0—