The State Oil Company of Azerbaijan Republic (SOCAR) is to close its Estonian operation, citing rising costs, as reported in Estonian business daily Äripäev.
The office was only opened last October with the view to providing IT accounting services and related activities; management states that difficulties in the oil market have exacerbated the costs situation.
The oil market is apparently experiencing a situation known as 'contango', which occurs when the futures price of a commodity such as oil is higher than the expected spot price on the maturing of a futures contract, and which is reportedly causing oil trading profits to fall.
This had already caused the company to close its Calgary office last year.
SOCAR is wholly state-owned and headquartered in Baku, Azerbaijan. It reportedly employs over 75,000 people worldwide in offices in various locations including London, Geneva, Singapore and Houston.
SOCAR Trading Services Tallinn OÜ reported a turnover of €100,000 in the first quarter of 2018.
Editor: Andrew Whyte
Source: ERR Uudised/Äripäev