State Oil Fund of Azerbaijan (SOFAZ) still did not allocate $696.1 million to fund construction of the first 6th generation of floating semi-submersible drilling rig in Azerbaijan.
SOFAZ reported that total cost of the project is $1,116,700,000. In 2015 SOFAZ allocated $287.6 million for construction of the 6th generation semi-submersible floating drilling rig.
In 2014 SOFAZ allocated $192.9 million to fund construction of the drilling rig.
Why is cost of construction of the drilling rig so high? SOCAR reported that it is been designed by an individual order (after upgrade the drilling rig could be upgraded to the 7th generation) and will be used to drill wells on the sea depth of 1000 meters and with a record depth of 12,000 meters.
Azerbaijan Rigs LLC was created to order construction of the 6th generation drilling rig in Azerbaijan, in which 90% shares are owned by SOFAZ and 10% by SOCAR.
In June 2013 Caspian Drilling Company, SOCAR’s daughter company in charge of offshore drilling, and Singapore Keppel Fels signed the contract to build the 6th generation drilling rig. Construction is done by Keppel Fels in Baku. The construction must be completed within 41 months.—0-
Economics
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S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
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In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
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A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
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Azerbaijan and Tatarstan continue to strengthen trade and economic cooperation, based on mutual interests in energy, mechanical engineering, petrochemicals, agriculture, and transport. Bilateral relations have shown steady growth, supported by regular visits of official delegations and participation in international economic forums.
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