The capital investments of the State Oil Company of Azerbaijan for 2021-2023 are estimated at 9 billion manats ($ 5.3 billion at the current exchange rate), Fitch reports.
The agency believes that capital investments of SOCAR in the medium term will be moderate, since the main projects – the Southern Gas Corridor, the STAR refinery in Turkey have already been launched, and will not require additional capital injections. At the same time, SOCAR plans to invest in other projects – for exploration and production of hydrocarbons, modernization of the H. Aliyev refinery in Azerbaijan.
According to Fitch forecasts, the average oil price in 2021 will be $ 58 per barrel, $ 53 per barrel in 2022.
According to the agency’s estimates, SOCAR will manage to maintain stable production of hydrocarbons in the next three-year period. In addition, SOCAR can count on constant and comprehensive support from the government of Azerbaijan.
Fitch analysts note that as for December 31, 2020, SOCAR’s liquidity amounted to about 8 billion manats, which is comparable to the size of the company’s short-term debt.