Oil Fund invests over $10 billion into gas projects of Azerbaijan

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During five years State Oil Fund of Azerbaijan (SOFAZ) will invest $2-2.5 billion a year into the company, which was created to manage the Shah Deniz-2 gas projects, Trans-Anadolu (TANAP) and trans Adriatic (TAP) gas pipeline, Shakhmar Movsumov, SOFAZ Executive Director, told journalists during the Investment Summit in Baku yesterday.

He said the investments will be used to fund the company’s activities.”This year $51 million will be spent for this purpose. Thus, SOFAZ budget for fiscal year 2014 will be revised,” Movsumov said.

He added that the capital, which will be spent to fund the activities of the operation company, should not be considered as costs. “These are investments, which will be returned as soon as the Southern Gas Corridor starts bringing profit. We believe that the investments will be returned to SOFAZ by 2023-2024,” said SOFAZ Executive Director.

On February 25, 2014 Azerbaijani President Ilham Aliyev signed a decree to created closed-type joint stock company (JSC) to manage the Shah Deniz Phase 2 project, expansion of the South Caucasian gas pipeline, TANAP and TAP.

According to the decree, SOCAR has been instructed to ensure efficient management of the projects through establishment of JSC with the authorized capital of $100 million, 51% shares of which will belong to the state and 49% by SOCAR.

SOFAZ will pay for the JSC shares owned by the state and ensure long-term investments into JSC on condition of return of the funds required to find the shares in the projects.

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