---

State Oil Company of Azerbaijan (Socar) is expecting construction work on its new joint venture storage terminal in Fujairah to be completed within 18 months, according to media reports.

A senior official at Socar is reported to have confirmed that building work is already underway and that the project is expected to be finished in 2012.

The facility, set to be named Aurora Fujairah Terminal, will have a total storage capacity of 644,000 cubic meters across 20 tanks and be used for the storage, blending, and resupply of fuel oils, gasolines, naphthas and middle distillates (diesel, gasoil & jet kerosene).

In May 2010, Socar entered into an agreement with privately-owned Swiss trading house Aurora Progress to collaborate in the development of oil storage facilities, including the new oil terminal being built in Fujairah. Socar is represented in the partnership through Socar Trading.

The new facility will be managed by a joint company named Socar Aurora, which will offer storage capacity to third parties.

In September, Vagif Aliyev, the head of investment at Socar, was reported to have commented that the involvement of a third investor in the Socar Aurora project was under consideration. The unnamed firm was said to be a local company based in Abu Dhabi.

Aurora announced the start of civil works on the terminal earlier this year after signing agreements with the Municipality of Fujairah and the Port of Fujairah.