Azernews.Az

By Fatma Babayeva

The total volume of consolidated assets of Azerbaijani state-owned oil company SOCAR equaled to 39.083 billion manats ($26.072 billion) as of January 1, 2016.

The statement was made by the company's Vice President for Economic Issues, Suleyman Gasimov, at the International Caspian Oil & Gas Conference 2016 held in Baku on June 2.

Gasimov noted that the losses of the company amounted to 1.438 billion manats ($959 million) in 2015.

However, at the expense of the exchange rate difference, it was possible to get a profit worth 3.271 billion manats ($2.182 billion) during the revaluation of SOCAR's foreign exchange reserves.

Previously, the Central Bank of Azerbaijan (CBA) devaluated the manat on Feb.21, 2015. As a result, the exchange rate of the manat decreased by almost 34 percent and stood at 1.05 manats per U.S. dollar.

Later in December, the CBA switched to the floating exchange rate of the manat. Subsequently, the exchange rates of dollar and euro surged by 47.6 percent and 47.9 percent and stood at 1.55 and 1.685 manats, respectively.

Gasimov went on to say that at a time when major oil and gas companies suspend their projects due to the crude price fall, SOCAR continues to implement projects that the company commenced both within Azerbaijan and abroad.

These projects include construction of Trans-Adriatic Pipeline (TAP), Trans-Anatolian pipeline (TANAP), Star refinery, modernization of the Baku Oil Refinery named after Heydar Aliyev, building offshore platforms for stabilization of production and others, said Gasimov.

The vice president further added that the financing of investment projects is carried out from Azerbaijan's state budget, through the attracted loans, as well as, via the company's revenues from commercial activities and optimization of the work.

Gasimov added that SOCAR saved $150.5 million due to implementation of the costs' optimization program.

Earlier, Gasimov emphasized that the debt of the company is controlled and managed regularly and does not create any problems to activities in the company.

SOCAR is fully owned by the state of Azerbaijan, largest oil producer in former Soviet Union after Russia and Kazakhstan.

The company is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in domestic and international markets, as well as, supplying natural gas to industry and the public in Azerbaijan.

Three production divisions, one oil refinery and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR.

Currently, SOCAR owns gas stations in Azerbaijan, Switzerland, Georgia and Ukraine.

In December 2015, the company made a decision to suspend activities of all foreign offices which functions passed to the Baku office and companies, which are fully owned by SOCAR.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

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