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SOCAR’s Kulevi Terminal to continue lifting subsea parts of sunken dredger

BAKU - The terminal in Georgian port Kulevi (Black Sea Terminal – BST Ltd.), which belongs to the State Oil Company of Azerbaijan (SOCAR), keeps on preparing to start accepting large-tonnage tankers for oil export.
BST reports that Further cutting, lifting and displacement of subsea parts of sunken dredger "SKADOVSK" from the terminal area have been halted.
“From 20 January it is planned to resume cutting and lifting works over subsea parts of sunken dredger,” it was informed.

Parts of the dredger are removed to expand access to BST.

Earlier SOCAR vice president Elshad Nasirov informed that now the terminal was becoming gradually ready to dispatch large-tonnage oil shipments.

“There are some problems as oil is one thing and black oil is quite another. As soon as Kulevi is ready for acceptance of crude oil, it will work with vessel shipments of up to 80,000 tons,” Nasirov said.

Currently full clearance of the channel running to BST (in particular removal Ukrainian vessel Skandovsk that has sunk in the channel) is under way.

On 30 September, after two-day delay over weather conditions the terminal received 106,000-ton tanker Aegean Freedom of Aframaks class that became possible after deepening work, which was carried out in the channel, going to BST. Earlier, the terminal was able to receive a tanker with the deadweight of no more than 40,000 (Panamaks class).

Aegean Freedom belongs to Greek company Arcadia Ship Management Co. Ltd.

From the day when the terminal was put into operation already 3 million tons and petroleum products were shipped, including 1 million this summer.

According to SOCAR president Rovnag Abdullayev, only by the start of summer, the terminal received and processed 2 million tons of oil and oil products from the day of opening against 1.451 million summarizing the results of 2008.

The SOCAR president expected that by the end of 2009 transshipment will make up to 8-10 million tons. Since 4 May BST shipped the 100th tanker with oil.

The terminal opened on 16 May 2008 is able to receive tankers with deadweight of 80,000-100,000 tons.

By investing $340 million in it (overall investments in Georgia made up $400 million), the company obtained transshipment of 2 million tons of petroleum products through it last year.

In 2009, transshipment through the terminal will reach 8-10 million tons and thus the terminal will reach its design capacity.

Earlier Moody International conducted certification of the terminal on standards ISO 9001 (management quality), ISO 14001 (environment protection management) and OHSAS 18001 (safety of production and industrial works).

Potential capacity of the Kulevi terminal is 10 million tons (by 3 million tons of oil and diesel fuel and 4 million tons of black oil).

The upgraded Kulevi terminal (located on the Black Sea coastline of Georgia) opened officially on May 16.

By the moment of its official opening the terminal had accumulated 10,000 tons of black oil. The terminal is able to receive and serve tankers with deadweight up to 60,000 tons.

SOCAR raised two loans ($265 million and $40 million) from the 15 bank member consortium organized by Societe Generale and ABN Amro for the terminal project.

The credits will be given under annual rate of Libor+0.85% for five-year period and will be repaid due to profit oil sales.

SOCAR expects to repay this loan already in 2009 taking into account high oil prices and growth of oil production.

The loans were raised in particular by SOCAR affiliated company founded for works on Azeri-Chirag-Gunashli field block (AIOC contract area) and transferred to another sub-company Carolina under higher interest rates. SOCAR has 51% equity stake in Carolina.

The terminal intended for transit oil and petroleum products has original capacity to transship 7-10 million tons of transit oil and petroleum products a year.

The terminal can accept by 2 million of crude oil, 3 million tons of diesel fuel and 4 million tons of black oil and other petroleum products. Its minimum profitability is 5 million tons a year.

Under Georgian government’s decision, area of the terminal located between the Tsiva and Khobbi rivers was increased from 100 up to 300 hectares that will allow rise of capacity of the terminal from 10 up to 15-20 million tons of hydrocarbons and reservoirs from 320 000 up to 380 000 cu m. The terminal is connected with the sea by a channel, three oil-loading racks and mobile tanker systems.

Posted by CBN Staff on 21 Jan 2010 [08:30] | Comments 0 |

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