State Oil Company of Azerbaijan Republic starts investing in Black Sea projects

Feb 24th, 2012 | Category: Articles, Business, Current Issue ID, February 12, Market Development

State Oil Company of Azerbaijan Republic (SOCAR) has decided to expand its activity in the Black Sea region countries by involving in the economy of states and financing transport infrastructure projects. This also permits companies from countries where SOCAR develops its activity to implement projects in Azerbaijan.

One of the countries important for SOCAR is Georgia, where the company invested and continues to invest both in economy and in infrastructure. “SOCAR invests massively in Georgia being one of the biggest investors and the role of the company in the Georgian market is extremely important since there are many fields of activity to invest in”, declared the Georgian Minister of Economic Development, Vera Kobalia, in an interview for APA Agency.
Recently, the company in Azerbaijan has announced it planned to allocate financing for  Kulevi Oil Terminal and carry out construction works for the line linking Chaladidi and Kolkheti stations. Currently, the company is building the level crossings at Chaladidi station. “All these works will permit the terminal to operate freight transport more efficiently. The development of the project will significantly reduce costs and increase transport capacity, creating favourable conditions for the customers”. Kulevi Terminal was put in service in the summer of 2008 and its total capacity is 10 million tonnes of oil/year, including 3 million tonnes of oil, 3 million tonnes of diesel fuel and 4 million tonnes of fuel oil. In 2008, the terminal signed a contract with the Railways for the development of the railway infrastructure in the area and nationally, which includes the development of new facilities and the reconstruction of the existing ones and the construction of contact points with the entire network. Moreover, the electrification of the line between Chaladidi and Parto Tskali stations is an important project which will contribute to significantly reduce pollution and encourage railway transport.
Turkey is another country in the Black Sea region where SOCAR is active. The company has recently announced that “we will invest USD 17 Billion in Turkey’s economy. This market becomes more and more important”, said the President of SOCAR Energy Turkey, Kenan Yavuz. Also, the two countries signed long-run partnerships for the implementation of energy and infrastructure development strategies. Based on the diplomatic relationship of Ukraine and Azerbaijan, SOCAR invested more than EUR 85 Million in economy and will implement 70 projects on energy and railway infrastructures.
Trade exchanges worth USD 1.4 Billion in 2012, more than in 2011 (USD 1.3 Billion) will stimulate not only the development of projects in Ukraine, but also the country’s ascent on the construction market of Azerbaijan. “Ukrainian companies negotiate to participate in the implementation of  Azerbaijan’s projects. In particular, we are talking about participation in such projects as the construction of new stations of the Baku underground and the construction of other infrastructure facilities”, declared Ukraine’s Deputy Minister of Foreign Affairs, Pavel Klimkin.

[ by Pamela Luică ]

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