EBRD approves loan for Azerbaijan’s Caspian Marine Services Investment
EBRD approves loan for Azerbaijan’s Caspian Marine Services
The European Bank for Reconstruction and Development (EBRD) approved a senior loan of up to $20.4 million to Caspian Marine Services Limited (CMS), read a message posted on the EBRD website July 11.
CMS is an Azerbaijani oil and gas services company, which operates a fleet of offshore supply vessels in the Caspian Sea, mainly in Azerbaijani territorial waters.
“The loan will be used as part of Fast Crew Boat Financing project to finance part of the acquisition costs of a new fast crew boat to be operated in territorial waters of the Caspian Sea,” the message said.
The total project cost is $34 million, some $20.4 million of which account for the EBRD loan.
A loan agreement is expected to be signed, the message said.
An alliance of the CMS and Azerbaijan’s state oil company SOCAR was established based on a contract signed by the sides in May 2006. According to the contract, the CMS-SOCAR alliance uses vessels of SOCAR’s Caspian Sea Oil Fleet to render services to foreign companies as well as modernizes vessels.
The main customers of the CMS-SOCAR alliance are SOCAR, BP-Azerbaijan and Lukoil.
Azerbaijan is an EBRD member since 1992.
The EBRD has allocated 2.46 billion euros for 161 projects in Azerbaijan since the start of cooperation, some 55 percent of which were spent for the development of the private sector.
The EBRD's current portfolio on Azerbaijan reaches almost 1.02 billion euros.