In accordance with the Presidential Order No. 287 on “Actions related to projects on Phase II of development of Shah-Deniz gas-condensate field and establishment of Southern Gas Corridor” dated February 25, 2014 “Southern Gas Corridor” CJSC (hereinafter referred as “Company”) was established for the purpose of effective management of the projects within the second stage of the Shah-Deniz gas and condensate field's development, Trans Anatolian Gas Pipeline (TANAP), Trans Adriatic Pipeline (TAP) and expansion of the South Caucasus Pipeline. “Southern Gas Corridor” CJSC was established with USD 100 million statutory capital, where 51 percent of the shares of the Company belongs to the state and 49 percent are owned by SOCAR.
According to the second paragraph of the Ordinance, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) will make a long term investment for financing the shares of the Company belonging to the state and its shares in the abovementioned projects. State shares of the Company will be held and controlled by the Ministry of Economy, while dividends from the shares will be transferred to the Fund.
On April 14, 2014 SOFAZ allocated USD 51 million (AZN 40 million) for financing the state share of the Company and transferred money to the account of the Ministry of Economy and Industry in state treasury.
In accordance with the Ordinance Fund invested USD 2.517 billion as of December 31, 2014 for financing the state shares in projects implemented by the Company. The invested money will be returned to the Fund as stated in the Ordinance.
According to the second paragraph of the Decision of the State Commission, established in accordance with the Decree of the Republic of Azerbaijan, dated July 9, 2014 on the financing mechanism of the projects by the Company, it was decided to increase the statutory capital of the Company every two months starting from 2015, while maintaining the same percentage rates of the shares of the Ministry of Economy and SOCAR. The capital growth should be financed by the shareholders. Consequently, statutory capital of the Company was increased up to USD 2 415.8 million till 30.06.2017 in accordance with the Decisions of the Supervisory Board and the General Assembly of the Company. SOFAZ has allocated USD 1232.1 million (51%).
Considering SOFAZ fulfillment of its commitments on financing of the state's share in the statutory capital of the “Southern Gas Corridor” CJSC project, expenditure item for this project have not been included to SOFAZ's 2018 budget.