S&P forecasts SOCAR's investment to grow to 3B manats per year in 2025-2027

According to the baseline scenario of the S&P Global Ratings, the State Oil Company of Azerbaijan (SOCAR)'s capital expenditures in 2025-2027 will amount to approximately 3 billion manats ($1.764 billion) annually, exceeding the figures for the past two years, Report informs referring to S&P.

"The nearly completed Shah Deniz 2 project and Shah Deniz Compression project signed earlier this year illustrate this ongoing effort to increase production output through further investments. Given that upstream is the segment contributing the most to SOCAR's EBITDA and has been the core of its operations, we would expect investments to fund new projects in undeveloped areas of the country or develop existing ones. In our base-case scenario, we anticipate S&P Global Ratings-adjusted FFO to debt of 12%-15% in 2025-2027 and slightly above 20% if accounting for the cash. However, we anticipate relatively high investments of 3 billion manats per year, with positive FOCF of about 1 billion manats ($588.2 million)," reads the message.