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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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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