Azernews.Az

By Aynur Jafarova

A closed joint-stock company (CJSC) for effective management of energy projects will be officially registered in Azerbaijan in the near future, Vice President of Azerbaijan's state energy company SOCAR for Economic Affairs Suleyman Gasimov told Trend Agency on March 17.

Azerbaijani President Ilham Aliyev signed a decree on the establishment of the CJSC in February 2014. The decree concerns projects related to the second stage development of giant Shah Deniz field and expansion of the South Caucasus Pipeline, Trans-Anatolian (TANAP) Pipeline, and the Trans-Adriatic (TAP) pipeline.

Given the state commission's proposals for the effective management of these projects, the state energy company SOCAR will establish a closed joint stock company (51 percent state-owned and 49 percent owned by SOCAR) with an authorized capital of $100 million, the decree says. SOCAR should also ensure the transfer of shares to the newly created CJSC.

State oil fund SOFAZ has been instructed to provide an equity financing for the CJSC. The funds that will be provided to the CJSC for financing the equity will provide a long-term investment on return conditions.

SOFAZ will be represented at the CJSC's Supervisory Board by its representatives, chosen by the state commission.

The ownership and management of the CJSC's shares will be conducted by the Economy and Industry Ministry, while the dividends on those shares will be transferred to SOFAZ.

The CJSC's proceeds received from all the projects will be transferred to SOFAZ until all the fund invested in the joint stock company are paid back.

The state commission, which was established by presidential order in October 2013, has been instructed to settle any issues raised in this decree.