Azerbaijan sets up firm to manage Shah Deniz projects, pipelines

February 26, 2014

Azerbaijani President Ilham Aliyev has signed a decree on February 25 establishing a closed joint-stock company (CJSC) for effective management of projects within the second phase of Shah Deniz gas and condensate field's development, expansion of the South Caucasus Pipeline, Trans-Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP), Trend has reported.

The decree says that given the proposals from the State Commission for effective management of these projects, the State Oil Company of Azerbaijan Republic (SOCAR) will create a closed joint stock company (51 percent state-owned and 49 percent owned by SOCAR) with an authorized capital of $100 million.

SOCAR should also ensure the transfer of shares in projects to the newly created closed joint stock company (CJSC). State Oil Fund of Azerbaijan (SOFAZ) has been instructed to provide an equity financing for the CJSC, which is under direct state ownership. The funds to be provided to the CJSC for financing the equity will provide a long-term investment on return conditions.

Copyright: Trend, 2014