While SOCAR expects SOFAZ to provide a substantial portion of funds for the OGPC and other projects, there is no definitive agreement yet beyond 2013, believe experts of the international Fitch rating agency.
Moreover, Fitch estimates that SOFAZ's assets have peaked at around USD34.1bn at end-2012 and expect these assets to decline through 2014 as SOFAZ contributions to the government budget stay high. Fitch notes that SOFAZ may not have sufficient funds for co-investment in all SOCAR's projects, leading to SOCAR's taking on additional debt, beyond its current estimates.
Since the beginning of 2013 Oil Fund started funding of four capital intensive project of SOCAR:
- construction of TANAP in Turkey;
- construction of oil refinery in Turkey;
- construction of petrochemical and oil refining complex in Baku;
- construction of four floating drilling rigs in Baku;
* SOCAR maintains close ties with the government and SOFAZ while making important financial and investment decisions in big energy projects.-0-
Economics
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SOCAR President Rovshan Najaf met with the Minister of State for Petroleum of Pakistan, Musadik Malik, on January 18. According to SOCAR, the discussions covered joint energy projects, achieved outcomes, and cooperation opportunities in various areas, including the trade of petroleum products.
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The State Statistics Committee of Azerbaijan reported that in 2024 investments in fixed assets reached 21,435.1 million manats, which is 0.7% less than in 2023. While overall figures edged lower, the sectoral breakdown reveals notable disparities between the oil and gas sphere and non-oil industries.
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Azerbaijan’s industrial enterprises and individual entrepreneurs reported a modest 1.1% year-on-year increase in industrial production during 2024, reaching an output valued at 64.1 billion manat. The State Statistics Committee attributed the overall growth to a 0.5% expansion in the oil and gas sector, while non-oil and gas industries surged by 7.3%.
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Global diesel prices and refining margins have spiked following the latest U.S. sanctions targeting Russian oil trade, as markets brace for reduced supply, analysts and LSEG data indicate.
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