SOCAR to increase investments to joint venture of Azerbaijan, Poland

  17 December 2014    Read: 643
SOCAR to increase investments to joint venture of Azerbaijan, Poland
Azerbaijan
He made the remarks Dec. 15 at the Azerbaijan-Poland business forum held in Baku.

“Azerbaijani and Polish companies are successfully cooperating in energy, oil and gas, industrial, agricultural, transport and other spheres,” the minister said.

He said SOCAR, which now owns 27.24 percent stake in the ‘Sarmatia’ project, expressed readiness to invest extra funds in the joint venture’s capital, in order to support its operation in 2015-2016.

The minister said that SOCAR delivered 485,000 metric tons of crude oil to Poland in 2012, 523,000 metric tons - in 2013, and over 750,000 metric tons - in 2014.

He said the food industry, petroleum processing, transport, including the railway transport, the delivery of electrical equipment etc. are the promising areas for the Polish companies’ activity in Azerbaijan.

“Also, the companies from Poland can organize activities on the territory of the industrial and technology parks in Azerbaijan,” Minister Aliyev said.

Earlier, the Sarmatia International Pipeline Company’s (IPC) Director General Sergei Skripka told that its is expected to increase the authorized capital of the Sarmatia IPC in 2015.

Tentatively the Sarmatia IPC’s capital will be increased by 10-20 percent.

Additional capital will allow the Sarmatia IPC to continue to work in the Brody-Plock (Adam’s gate) pipeline project.

Currently, the authorized capital of the Sarmatia IPC stands at 20.06 million zlotys (or about five million euros).

Sarmatia plans to adjust the feasibility study of the project for construction of the Brody-Plotsk pipeline due to continuation of works without additional funding by the EU.
Also, after the increase of the authorized capital, works will be carried out to plan on the pipeline’s route in the territory of Poland.

The Brody-Plock (Adam’s gate) oil pipeline is currently the only missing part of the Euro-Asian Oil Transportation Corridor.

Following the realization of this project, Caspian states will receive an additional reliable route for oil supplies to the European market, new customers, and their opportunities to work in adjacent markets will also expand.

The studies on the choice of a route for the future Brody-Adam’s gate oil pipeline have been already completed.

The route’s total length will be 377 kilometers, some 120 kilometers of the pipeline being built in Ukraine, and 257 kilometers in Poland.

Sarmatia’s participants include Azerbaijan’s State Oil Company (SOCAR), Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian company UkrTransNafta, the Polish company Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. and the Lithuanian company AB Klaipedos Nafta.

The key participants own 24.75 percent share in Sarmatia each, and the Lithuanian company owns one percent share.

The oil transportation project Odessa-Brody was planned to diversify oil supplies to the Ukrainian oil refineries and to develop the transit capacities of the country.

The Odessa-Brody oil pipeline’s construction was completed in May 2002.

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