SOCAR has difficulty in collecting payments

Jun 24, 1999 02:00 AM

Azerbaijan's economic crisis has resulted in a $ 1.7 bn debt to the state oil company SOCAR by its clients, company officials said.
The state concern, Azerbaijan's largest single enterprise, receives only 10 to 15 % in remittances from its main customers, the company's financial department reported.
"The main offenders are the state electrical company Azenergy, national airlines Azal, the agricultural ministry and the state shipping company Kaspar," a finance department official said.
Azerbaijan has witnessed a drop in budget revenues, due to the world-wide depression in oil prices and the fallout from the Russian financial crisis.
SOCAR, which earns around $ 360 m per year, at one time provided more than 50 % of the state income, but this has been reduced by more than half due to the difficulty in collecting payments.
The oil company sells all of its natural gas and some 70 % of oil products on the local market. Officials said that the company was forced to sell oil on the openmarket in order to compensate for the loss in payments.

Source: AFP via Iinoil
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