Gasol plc, the West African energy development company entered into an unsecured convertible loan agreement with Socar Trading S.A., London-based Gasol reported on Monday.
According to the report, the loan in the amount of 1 million dollars reinforces commitments of Socar Trading to supply LNG and assist Gasol with the provision of floating gas storage and regasification facilities for its proposed LNG Import project in Cotonou, Benin.
These commitments are detailed in a Letter of Undertaking which the parties have also signed.
Socar Trading will lend Gasol $1 million in the form of an unsecured sterling convertible loan note with a term of 2 years at an annual interest rate of 4 per cent.
In December, 2012 Socar Trading and Gasol signed a strategic alliance agreement on providing LNG for a proposed LNG Import Project in Benin (the "Project"). According to the statement, under the terms of the alliance Socar Trading will supply all LNG required for the Gasol project and help with the provision of a floating gas storage and regasification vessel in the harbor at Cotonou, Benin.
The project involves the regasification of LNG and the supply of the gas to power and industrial customers in Benin, Togo and Ghana.
Socar Trading is a subdivision of the State Oil Company of Azerbaijan (SOCAR).
SOCAR is the only producer of oil products in the country (it has two refineries on its balance sheet) and also owns petrol stations in Azerbaijan, Georgia and the Ukraine. Last year SOCAR purchase network of gas filling stations in Switzerland. SOCAR is co-owner of the largest Turkish petrochemical complex Petkim. The company carries out oil trade in various regions of the world through SOCAR Trading./Trend/