SOCAR studies prospect of securities placement

The State Oil Company of Azerbaijan (SOCAR) is now on the way of transforming into a large international company and is building its operation as a vertically integrated company from the process of exploration and development of fields to sales of oil products and petrochemicals, SOCAR's Vice-President on Economic Affairs Suleyman Gasymov said on Friday at a meeting with Member companies of the Caspian-European Integration Business Club (CEIBC).

The meeting covered the discussion of prospects of economic cooperation with member companies of the Caspian-European Integration Business Club.

At the meeting Gasymov highly appreciated CEIBC's present initiative since such meetings promote the establishment of business-government dialogue, exchange of opinions and discussion of proposals on prospects of development of new projects.

At the meeting he spoke about the modernization of SOCAR's structure, reminding that the structure of SOCAR included Azerigaz in 2009 and Azerkimya in 2010 as production associations.

He told about the branched network of main oil and gas pipelines for transportation of energy products and emphasized that today 22 entities are operating within the structure of SOCAR. In addition, SOCAR represents interests of Azerbaijan in more than 32 PSA contracts and major contracts are the contracts on development of Azeri-Chyrag-Gunashli and Shah Deniz fields.

He also noted that the reforming of SOCAR's structure enables to solve issues of receivables and lower thereby the tax load on the SOCAR enterprises.

The most important for Gasymov was the transition of SOCAR to the International Financial Reporting Standards (IFRS). Further this system was automated and automated control and account systems were introduced in the various directions, including in the spheres of HR, purchase and sale, assessment of risks, planning of production processes, etc. Now the group of 45 people works and writes programs at 22 SOCAR-run enterprises and unifies them under uniform standards.

Gasymov emphasized that within three days the salary shall be transferred to plastic cards of 73,000 employees of SOCAR.

Today the system of transfers of financial means is completely transparent. The work on introduction of international anti-corruption standards is now underway and the corresponding tender was held. Its winner was defined. "At the end of this month the work in this direction will be complete", he said.

Gasymov spoke about SOCAR's experience in the field of crediting, emphasizing that earlier taken credits were restructured and now those funds were borrowed on more favorable conditions.

He also noted that so far the three main leading rating agencies have given ratings to SOCAR.

Gasymov emphasized that the assets of the State Oil Company of Azerbaijan make $17 billion, and here about $2 billion account for obtained funds.

Separately he told about SOCAR's activity in various countries, noting that SOCAR also has plans to invest $15 billion in Turkey in construction of a new oil refinery and other infrastructure. According to him, now SOCAR has 13 representations abroad.

Gasymov in detail told about the placement of nominal securities in the London Stock Exchange, noting that prospect of placement of securities in the domestic market is also studied.

At the meeting President and CEO of CEIBC Telman Aliyev told about CEIBC's activity, noting that this year CEIBC is celebrating the 10th anniversary. He told about the plans to hold a meeting of CEIBC member companies with HE President of Azerbaijan Ilham Aliyev the in the end of the year.

SOCAR Vice President Gasymov was handed the CEIBC honorary membership certificate. New CEIBC member companies also received certificates. Participating in the meeting were managers and representatives of several diplomatic agencies accredited in Azerbaijan.


/Trend/