THE AZERBAIJAN TV COMPANY "LEADER" HAS STARTED THE BROADCAST FOR KIRGIZSTAN

BAKU.01.08.2003.MEDIA-PRESS: The independent TV Company "Leader", which had begun a first in Azerbaijan broadcast by means of satellites, has started transmitting for Kirgizstan. Media-Press has been informed about this in the Direction of the Company.

By the information of the interlocutor, the Kirgizstan side, providing round-the-clock broadcast of the TV Channel "Leader" on the territory of its country, took all expenditures from rebroadcasts for itself and without any comments and supplements to the program or the Azerbaijan Company. As the source has noted, the Company "Leader" scarcely will stop at this achievement. "We base on the fact that not everybody has a possibility to look our broadcasts by means of the "plate" and that is why we intend to use every opportunity for informing population of countries joined in the CIS and first of all, speaking Turki language, about life in Azerbaijan".


THE POPULATION IN AZERBAIJAN NUMBERS 8 MM 233 THOU PEOPLE

BAKU.01.08.2003.MEDIA-PRESS: The population of Azerbaijan numbers 8 MM 233 thou people. By information of the Statistics Department, on January - June 2003 57 thou 200 children were born in the country. 25 thou 400 death facts were registered for the first half of a year. In result a natural increment of population has made 31 thou 800 people.

By information of the Statistics Department, 51% of the Azerbaijan population are townspeople. In total over the country 19 thou 600 marriages and 2 thou 800 divorces had been registered in this year.


"THE BLUE STREAM": PUMPING BEGINS AGAIN, HOWEVER, PROBLEMS REMAIN

BAKU.01.08.2003.MEDIA-PRESS: Since August 1 Turkey begins again to receive the Russian gas. The Ministry of Energy and Natural Resources of Turkey Mr. Khilmy Gyuler has reported this by the results of negotiations with the Management of "Gazprom", held on July 30 in Ankara. The sides, as he said, significantly drew together positions on realization of the agreement "The Blue Stream".

As the Head of the delegation of "Gazprom", the Deputy Chief of the Management of the Company Mr. Yuri Komarov has noted in his turn, Turkey will be in conditions equal with other countries, purchasing the Russian gas. In his interview for ITAR - TASS he has emphasized that discussions on price and gas volumes delivered by the pipeline the "Blue Stream" will be continued in the next week on a level of experts. "The sides refused of adjustment of disagreements in the international Court of Arbitration, hoping find out compromise during the talks", - Mr. Komarov has said. After meeting of the experts the final round of talks will be held, and documents removing disagreements between the sides will be signed during them. Ankara will receive necessary gas volume for a price, which will be competitive at the international market, he has noted.

As the Vice Chief of the Management of "Gazprom" Mr. Yuri Komarov has noted in the beginning of July, his company has offered to BOTAS consideration of question about loading the "Blue Stream" in connection with two other projects: the contract BOTAS and "Gazexport" dated from 1986 (for 25 years, maximum volume of deliveries - 8 bn cubic meters per a year) and contract of "Gazexport" and TuRusGas - joint structure of BOTAS, "Gazprom" and ENIKA (23 years, maximum volume - 8 bn cubic meters). "Gazprom" offered to reduce volumes of total purchases of gas by all three contracts, reduce and unify prices for them for the next five years.

We shall remind that the "Blue Stream", put into operation in the beginning of 2003 has stopped already on March. The Turkish BOTAS shut down the valve, explaining this step by excessive price for the Russian gas. It costs by $1.5 per thousand cubic meters more expensive than the Russian gas, delivered to this country through Bulgaria. And so Turkey had lost approximately $176 MM. As it was declared in BOTAS, "Gazprom had made an error at the price formula calculation, having increased it by an order. Furthermore, Turkey managed to reduce a initial price and volumes of deliveries for 2003. "Gazprom" had reduced a price almost up to $75 for one thousand cubic meters and pumping volumes from 4 up to 2 bn cubic meters. However, BOTAS insisted on further price reduction, though by estimations of experts, 90 - 95% profitability of the gas pipeline is possible only at the price on a level of $110 and so "Gazprom" opposed this in all ways, demanding an execution of contract duties.

Ankara repeatedly declared that intended to escape from existing dependence from the Russian gas. Before start of operation of the pipeline "Blue Stream" a part of the Russian gas deliveries in Turkey made 67%. This index does not fit for Ankara for neither economic, nor strategic parameters. The European Commission had limited a top of energy resources deliveries from countries nonmembers of the European Union by 30%. And by estimations of experts, in 2003 - 2005 a dependence of Turkey from the Russian gas will not drop lower than 62%, what is also intolerable. That is why BOTAS intends to keep deliveries from Russia on a level of the present year and also during next years. And growing demand, probably will be satisfied in account of import growth from Iran and Azerbaijan.

As Mr. Khilmi Gyler has declared after negotiations in Ankara, the sides had overcome disagreements, connected with forming prices for gas delivered to Turkey by three different projects. And during next meeting of experts these "three agreements will be brought to the common denominator". As the Minister has emphasized, the prices, which will be fixed for the purchased Russian gas, will be comparable with a cost of the "blue fuel", imported by the European consumers. "We will not purchase gas on worse than for other buyers conditions, - he has said in his interview to the Anatolian News Agency. - We consider that development of relations with Russia would be very important and any project similar with the "Blue Stream" are not able to affect negatively on them", - he has said. Answering to question of a correspondent either his phrase means that a price for the Russian gas will be reduced, Mr. K. Gyuler was laconic: "Yes".

By the other words, Ankara continues to get reduction of the prices and volumes of deliveries of the Russian gas. And the gas pipeline Baku - Tbilisi - Erzurum, which still has not put into operation plays, similarly, plays one of main roles here. As the representative of the US Department on the Energetic Resources of the Caspian Sea declared in the end of June, Mr. Steven Mann, the Project "Shakh-Deniz" on export of the Azerbaijan gas to Turkey and further to Europe supposedly will force to shut down forever the gas pipeline "Blue Stream". By his words, the international consortium realizing the project "Shakh-Deniz", considers that the Azerbaijan gas export to Turkey will allow Ankara to drop prices for gas, received within frameworks of the project "The Blue Stream" up to $15 - 20 per a thousand cubic meters.

As the Chief of BOTAS Mr. Mekhmet Bilgich has declared, up to the end of 2003 Turkey will receive 830 MM cubic meters of the Russian gas within frameworks of the project "Blue Stream". The remained 830 MM will be delivered up to January 1 of 2004. By his words, Ankara gets reduction of volumes of the Russian gas, which will be delivered in this year by the "Blue Stream" up to 1 bn cubic meters. He emphasized that during negotiations with the management of "Gazprom", it was managed to achieve compromise and in result of it prices for the Russian "blue fuel" delivered to Turkey will be reduced.


THE FIRST PIPE HAS BEEN LAID ON THE AZERBAIJAN AREA OF THE PIPELINE BAKU - TBILISI - CEYHAN

BAKU.01.08.2003.MEDIA-PRESS: The first pipe has been laid into the ground on the Azerbaijan area of the Main Export Pipeline Baku - Tbilisi - Ceyhan (MEP), the Press-Service of BP Azerbaijan has informed. The laying of the pipeline has started near the Sangachal terminal, from where it will be continued through all counry from the West to the East in accordance with construction schedule.

For the present 24791 thou pipe sections have been delivered (in total 288 km that makes 68% of their necessary quantity). In the purposes of ensuring the pipeline laying works continuity above 12 km of pipes (1035 sections) have been welded in lashes already. The pipes are kept in the strores, situated in the strategic points of the pipeline route in Umbaki, Mugan and Kyuramir. A construction of the pipe store in Evlakh has been started, and after this works on the remained pipe stores will start in Gyanja and Poylu. At the same the Joint Company Spie Capag/Pertrofac, the construction contractor on land constructions continues its work at the pumping station PS-A2 near the point Yadilly in Evlakh Region and builds a camp for building workers, which would be settled on September, as it is expected. The ground works in the pumping station area and preparations for construction of the base are carried out. As well preparation for the works on stations of putting into operation of cleaning scrapers IP-A1 and their reception goes on. In Sangachal a work on construction of the general pumping station BTD PS-A1 is conducted. Here a number of the main bases have been installed already, including ones for pumps of the Main Oil Pipeline. By the end of June the works on the MEP Project were executed by 15%. The initial budget of the project by $2.95 bn and working schedule remains unchanged and it is expected that the construction of the pipeline will be completed by the fourth quarter of 2004, what wil allow exportation of the early oil from the fields "Azeri - Chiraq - Gunesly" in the first quarter of 2005.

By information of the Press-Service of BP Azerbaijan, during the MEP construction approximately 10 thou job vacancies will be opened (2300 - in Azerbaijan, 2500 - in Georgia and 5000 - in Turkey), and besides, in all three countries opportunities of long-term provision of employment will appear for the time of pipeline operation. The contracting company CCIC, which is engaged in pipes laying, has already opened provision of employment centers in Sangachal, Mugan, Kyurdamir and Gyanja and else one center will be opened soon in Agstafa. These centers will be engaged in hiring of workers among the local population, living along the pipeline route. At the present time more than 800 citizens of Azerbaijan work in the Company CCIC, what makes 72% of its total staff number. The Allyance Spie Capag/Petrofac, which is a contractor on building of land constructions in Azerbaijan also continues hiring of the local people. At the present time over 180 persons work in this contractor company (directly or as main subcontractors), 83% of them are Azerbaijan citizens and about 37 of them are inhabitants of villages situated in the direct closeness from the pumping station PS-A2.

By the present time within frameworks of construction works on the project BTC over 100 Azerbaijan companies offering services, equipment and commodities have been attracted through CCIC. Else 30 companies have been attracted through Spie Capag/Petrofac. Hereto shareholders of BTC Co.: BP (30.1%), the SOCAR (25.00%), Unocal (8.90%), Statoil (8.71%), TPAO (6.53%), Eni (5.00%), TotalFinalElf (5.00%), Itochu (3.40%), INPEX (2.50%), ConocoPhillips (2.50%) and Amerada Hess (2.36%).


A PROCESS OF PURCHASING LOTS SITUATED ON THE MEP BAKU - TBILISI - CEYHAN ROUTE HAS COME TO THE END

BAKU.01.08.2003.MEDIA-PRESS: A process of purchasing lots situated on the built Main Export Pipeline Baku - Tbilisi - Ceyhan route has come to the end.

There are five thou lots of the state, municipal as well as private properties on the route of the future pipeline. As Azerbaijan laws forbids lands sale to foreign physical and juridical persons, lots on the MEP route may be leased for a maximum term of 99 years. Thus, lot owners on the route of the pipeline own the lands as before and will receive a compensation for leasing during 60 years. For the present compensations have been paid out to 99% from 4150 of private landowners and land users. There are 102 municipal organs as well as the Ministry of Ecology and Natural Resources (for forests). A total of payments for lots in Azerbaijan makes $14.2 MM. 1% (29 private land owners and users), which by the object reasons (land owners heirs are abroad, on military service, etc,) shall stil receive compensations.


IRAN PREPARES FOR EXPLORATION AND DEVELOPMENT OF OIL FIELDS ON THE CASPIAN SHELF

BAKU.01.08.2003.MEDIA-PRESS: Iran prepares for development of oil fields on the Caspian shelf.

By information of national Iranian oil company NIOC, by the mid of the next year (in Iran a year starts on March 21), a submersible oil drilling platform will be delivered for contractors in the Caspian Sea. The Consortium consisting of the Iranian company Iran Maritime Industries (Sadra) and Sweden Corporation GVA-C has won a tender else in 2001 and received the relevant contract with a cost of $215 MM. Besides of this, Sadra has won else two international tenders on January 2002 and concluded two contracts by $50.6 MM and 48 Rials Iran for construction of else three submersible oil drilling installations.


IRAN WILL PURCHASE 6 OIL CARRIERS OF MIDDLE TONNAGE FOR PURCHASES OF KAZAKHSTAN AND TURKMEN OIL

BAKU.01.08.2003.MEDIA-PRESS: The Iranian National Company of the oil-loading fleet has conclude contracts on constructions of 6 tanks with displacement 63 thou tons of each one. As the Chief of Planning Management of the Company Mr. Abdossamad Taagol has informed the Agency "Mekhr", three tanks will be built by the Iranian Company "Sadra" and three - by the Russian company.

The ships should go over to the Iranian fleet by the beginning of 2005. They have been designed for carrying out the projects of cooperation in the oil field between Iran and Turkmenistan, Kazakhstan. By the words of Mr. Abdossamad Taagol, expenses for construction of tanks are estimated by $240 MM. By his words, tanks with such displacement will firstly put into operation in the Caspian Sea. The largest oil carriers traveling now in the Caspian Sea have a deadweight not over 7 thou tons.


KAZAKHSTAN AND THE USA INTEND TO DEVELOP COOPERATION IN THE ENERGY FIELD

BAKU.01.08.2003.MEDIA-PRESS: Kazakhstan and USA intend to develop the cooperation in the energy field. The Minister of Energy and Mineral Resources of Kazakhstan Mr. Vladimir Shkolnik has made such statement by results of official meetings in the Administration and Ministries of the USA, KZ-today informs.

In particular, at the meeting with the US Ministry of Energy Mr. Spenser Abraham, cooperation prospects in oil production and transportation, physical protection of the oil gas industry objects, development of electric power and peaceful nuclear industry. As Mr. V. Shkolnik has noticed, the sides "confirmed their strict devotion to creation of favourable conditions for cooperation between two countries in the power field". By opinion of the Minister, the American companies have a high level of technologies, which are necessary for operation in complex ecological conditions of the Caspian North, what would allow them to compete with the other international companies in development of new prospect units.

We shall remind that by 2015 Kazakhstan plans to produce up to 100 MM tons of oil and gas condensate in the Caspian Sea annually and 170 MM tons over the whole country, and the major part of it will be exported.


UKRAINE WILL PURCHASE ANNUALLY 10 - 15 BN CUBIC METERS OF THE IRANIAN GAS

BAKU.01.08.2003.MEDIA-PRESS: Kiyev and Teheran have agreed on annual deliveries of 10 - 15 bn cubic meters of the Iranian gas to Ukraine. The transportation may start in the next time, - the press-service of the Ministry of Fuel and Energy of Ukraine informs.

Agreement on this was achieved at the meeting of the Minister of Fuel and Energy of Ukraine Mr. Sergey Yermilov and Deputy Foreign Minister of Oil of the Islamic Republic of Iran Mr. Sayed Mokhammad Khadi Nejdad Khoseyiyan. The Iranian side suggested to create joint working group, which be engaged in studying of new gas transportation routes from the Caspian region to Europe. By the words of Mr. S.M. Khoseyniyan, Iran, which contains 50% of resources of the Caspian natural gas, orients first of all on export of its proper "blue fuel" to the Eastern Asia and Europe. And Ukraine for its good geographic state and transit opportunities would be able not only import the Iranian gas, but carry out transit of supplementary volumes to other countries. Furthermore, Mr. S.M. Khoseyniyan has expressed a readiness of its country to provide a possibilities for the Ukrainian companies to take part into development of the Iranian fields and work on the oil and gas market of Iran. Mr. S. Yermilov has noticed that the visit of the Iranian delegation will serve to transforming the mutual relations into practical plane. By the words of the Minister, as the practice shows, cooperation of countries in the energy field will certainly bring to activating of relations in all remained spheres.


THERE HAVE BEEN A NEW OWNER OF THE BAKU STEEL FOUNDRY NOW

BAKU.01.08.2003.MEDIA-PRESS: The Azerbaijan small company "Birlik" has become a winner of the investment competition on purchasing the JC "Baku Steel Foundry".

In accordance with conditions of competition, after signing relevant agreement, the SC "Birlik" is charged to transfer 1.8 bn manats to the state budget and provide no less 30 thou privatization cheques for their further redemption. Besides, 300 MM manats will be transferred to accounts of the steel foundry for carrying out primary works provided by the investment program. As Media-Press has been told in the Ministry of the Economic Development, an execution of the investment program of new owner of the steel foundry have been accounted for two years and divided by four stages. It provides 10 bn manats investments for restoration and modernization of the enterprise. The Baku Steel Foundry was built in 1968. Its project capacity is 24 500 tons of production per a year. By today the venture has above 400 MM manats depts for salaries. A debitor debts of the company makes 9.24 manats.

The venture was offered for a sale at the second time. On June of the past year the Ministry of the Economic Development cancelled a contract with a local company "Inekotex", which was recognized earlier a winner of investment competition on purchasing this company. The decision on cancelling the contract with "Inekotex" was taken because it had not executed obligations taken for it. In particular, the company transferred 605 MM manats instead of 1.5 bn manats to the state budget. Besides, "Inekotex" did not invest in production development and restoration on the steel foundry.


MEMORANDUM ON COOPERATION IN HEALTH AND PHARMACEUTICAL FIELDS HAS BEEN SIGNED BY IRAN AND THE NAKHCHIVAN AUTONOMOUS REPUBLIC

BAKU.01.08.2003.MEDIA-PRESS: The Chief of the Iranian Society "Red Crescent" and Minister of Health of the Nakhcivan Autonomous Republic of Azerbaijan have signed the Memorandum on cooperation in the health, pharmaceutical fields and restoring treatment for a term of one year.

The Chief of the Iranian Society "Red Crescent" has declared about readiness of the Islamic Republic to promote to strengthening of bilateral cooperation. "We want to cooperate closely on questions of youth, women and fight against VIC and hope also on extension of medicine chests, built in Nakhchivan by Iran". In his turn the Minister of the Health of the NAR has expressed his gratitude to the Iranian Society "Red Crescent", which began its activities in Nakhchivan since 1990. Also he called Iran to assist to insulin purchases for the Nakhchivan Republic.