SOCAR to receive 2 billion AZN credit from International Bank of Azerbaijan

In the near future State Oil Company of Azerbaijan (SOCAR) will receive the first tranche of the credit from the International Bank of Azerbaijan (IBA), SOCAR Vice President for Economic Affairs Suleyman Gasymov told journalists.

He added that total sum of the credit is 1.86 billion AZN.

“Of total sum of the credit 1.26 billion AZN will be spent for upgrade of Heydar Aliyev oil refinery, 600 million AZN for the drilling works on the Bulla Deniz field and shallow section OF Guneshli field,” Gasymov said.

He said the Azerbaijan Cabinet of Ministers has already made a decision and the Finance Ministry will act as the state guarantor.

He added that 50-60 million AZN from the first tranche of the IBA’s credit will be spent for the oil refinery’s reconstruction and about 200 million AZN for the drilling works.

“Both are long-term credits. The credit for the oil refinery upgrade was allotted for 13 years, first three of which are grace period. It will be repaid within 10 years by equal parts at the expense of the state budget and SOCAR’s authorized capital,” Gasymov said.

He said the credit for the drilling works was allotted for the period 5-6 years and the source of its repayment will be incomes from sale of extracted hydrocarbons.

SOCAR President Rovnag Abdullayev said earlier that upgrade of the Heydar Aliyev oil refinery will be completed by the end of 2018.

After upgrade capacity of the oil refinery will be increased from 6 up to 7.5 million tons of oil a year.

In January 2015 SOCAR abolished Azneftyag company and merged it with the Heydar Aliyev oil refinery.—0—