OREANDA-NEWS. August 12, 2008. State Oil Company of Azerbaijan (SOCAR) has come forward with special statement about activities of its enterprises in Georgia.

The Company has reported that all these enterprises in Georgia are operating in normal regime.

“Today we have shipped next tanker with oil products from Kulevi-based terminal belonging to SOCAR,” the Company reports.

Nevertheless, SOCAR has decided to carry out evacuation of family members of its personnel in Georgia-based enterprises.

The upgraded Kulevi terminal (located on the Black Sea coastline of Georgia) belonging to SOCAR’s daughter enterprise Socar Energy Georgia LLC opened officially on May 16.

By the moment of its official opening the terminal had accumulated 10,000 tons of black oil. The terminal is able to receive and serve tankers with deadweight up to 60,000 tons.

The announced capacity of the Kulevi terminal is 10 million tons of oil and petroleum products, but in the first year of its operation its loading can make around 50%.

SOCAR raised two loans (USD 265 million and USD 40 million) from the 15 bank member consortium organized by Societe Generale and ABN Amro for the terminal project. The credits will be given under annual rate of Libor+0.85% for five-year period and will be repaid due to profit oil sales.

SOCAR expects to repay this loan already in 2009 taking into account high oil prices and growth of oil production.

The loans were raised in particular by SOCAR affiliated company founded for works on Azeri-Chirag-Gunashli field block (AIOC contract area) and transferred to another sub-company Carolina under higher interest rates. SOCAR has 51% equity stake in Carolina.

The terminal has original capacity to transship 7-10 million tons of transit oil and petroleum products a year.

The terminal can accept by 2 million of crude oil, 3 million tons of diesel fuel and 4 million tons of black oil and other petroleum products. Its minimum profitability is 5 million tons a year.

Under Georgian government’s decision, area of the terminal located between the Tsiva and Khobbi rivers was increased from 100 up to 300 hectares that will allow rise of capacity of the terminal from 10 up to 15-20 million tons of hydrocarbons and reservoirs from 320 000 up to 380 000 cu.m. The terminal is connected with the sea by a channel and three oil-loading racks.

SOCAR has a 51% stake in Socar Energy Georgia LLC, the rest belongs to Georgian partners.