EBRD and Japan Ex-Im Bank to finance Armenian thermal power plant

June 21, 1997 The Export-Import Bank of Japan will extend loans to the government of the Republic of Armenia to help complete construction of a thermal power plant which is to replace an outmoded nuclear power plant. The European Bank for Reconstruction and Development (EBRD) is also co-operating in the project. Construction of the thermal power plant has been suspended due to a lack of funds. The Em-Im bank will provide about $ 60 million, while the EBRD will lend about $ 70-80 mm.
The Armenian government and the EBRD have agreed to shut down the nuclear power plant by 2004 if the thermal power plant is completed by 1999. Azerbaijan to seek investors for rehabilitation mature fieldsJune 16, 1997 A tender process is expected to kick off in the first quarter of 1998 for foreign firms to participate in the rehabilitation of mature oil fields offshore Azerbaijan, including the famous Neft Dashlary (Oil Rocks), the world's first offshore development.
Five fields will likely be tendered, with collective recoverable reserves estimated by Azeri state oil company Socar at 740 mm barrels. The economic viability of the fields is being assessed by UK- based MAI Consultants in a study commissioned by Socar under the framework of the World Bank technical assistance programme.
The fields under study include: Neft Dashlary, discovered in 1949 and currently producing 14,000 bpd; Palchig Tapesi (Muddy Hill), started in 1953 and is containing around 74 mm barrels of recoverable reserves; the northern portion of the Bakhar field; the Sangachaly More, Duvanny More Khara and Zyrya group of fields, currently producing 7,000 bpd compared with a peak 100,000 bpd in 1975; and the gas and gas condensate Bulla More field.
The fields have severe problems, such as a very high water cut, dilapidated infrastructure and considerable storm damage to surface facilities, coupled with an acute shortage of investment over the last seven years.
According to Vitaly Begliarbekov, executive director of Socar's project implementation unit: "For foreign companies without a presence in Azerbaijan's offshore industry, these potential projects might offer a first step in establishing a long-term relationship with Socar; others may see in these projects a means to cement an existing position. For Socar, these projects should bring some of the oldest offshore fields producing economically into the next century."