OREANDA-NEWS. November 13, 2010. The State Oil Company of Azerbaijan (SOCAR) has chosen a partner on upgrade of the gas system on European standards.

Rovnag Abdullaev, the Company’s president, says that they are going soon to sign an agreement with Germany’s RWE on gas system modernization to touch Baku and Absheron.

"We’ve already prepared a relevant feasibility study," he added.

It should be noted that Germany E.On Ruhrgas was the first one that submitted to the SOCAR a project on bringing gas supply system of Baku and the Absheron Peninsula in compliance with European standards. According to E.On Ruhrgas initial assessment, work on updating and automating of gas supply systems, including the use of prepayment meters (with smart-cards) was estimated at 1.1 billion euro. As a result, SOCAR gave preference to RWE.

Earlier the EBRD also displayed an interest to financing for the project of country’s gas system upgrade on European standards. And although the SOCAR did not hold subject negotiations with potential investors and lenders then, it was ready fully for co-operation with the EBRD and expected from the Bank more profitable conditions than the ones of commercial banks.