BAKU.15.08.2003.MEDIA-PRESS: The European Reconstruction and Development Bank considers a question on allocation of $170 MM credit to the State Oil Company of Azerbaijan for financing its 10% share in the project "Shakh-Deniz". Media-Press has got this information in the SOCAR.
THE ERDB CONSIDERS A QUESTION ON ALLOCATION OF CREDIT IN A TOTAL OF $170 MM TO THE STATE OIL COMPANY OF AZERBAIJAN FOR FINANCING ITS SHARE IN THE PROJECT "SHAKH-DENIZ"
We shall note that expenses for only the realization of the "Stage -1" of the project 'Shakh-Deniz" will make $750 - 800 MM in this year.
As a whole the "Stage - 1" includes installation of the platform TPG 500 for drilling of 15 wells at a depth up to 105 m, underwater preparation of the field with 5 wells, which will be drilled later at a depth up to 300 m, construction of two underwater pipelines with a length of 100 km of each (26 inches pipeline and 12 inches - for condensate) from the platform TPG 500 to the Sangachal terminal, as well as construction of the Southern Caucasus pipeline - from Azerbaijan through Georgia to the Turkish frontier. The total cost of the project makes $3.2 bn.
The estimating supplies of the field "Shakh-Deniz" make 1trln cubic meters of gas. The joint-stock holders are following companies: BP (25.5%), Norwegian Statoil (25.5%), SOCAR (10%), French-Belgium TotalFinalElf - 10%, Russian "LUKoil" - 10%, Iranian OIEC - 10% and Turkish TPAO - 9%.
THE AMERICAN COMPANY CHEVR0VTEXACO HAS BECOME A PURCHASER OF THE SEPTEMBER OIL PARTY OF THE SOCAR EXPORTED BY THE PIPELINE BAKU - NOVOROSSIYSK
BAKU.15.08.2003.MEDIA-PRESS: The American company ChevronTexaco has become a purchaser of the September oil party of the State Oil Company of Azerbaijan, exported by the pipeline Baku - Novorossiysk.
BAKU.15.08.2003.MEDIA-PRESS: The Reception Commission of the Caspian Shipping Company (CSC) has received a new oil carrier of new generation for a new balance: an oil carrier "Aziz Aliyev" was built on the Russian shipbuilding plant "Krasnoye Sormovo". As Media-Press was informed in the Management of the CSC the oil carrier will come to Baku on August 26. The construction of tank cost $8.75MM.
BAKU.15.08.2003.MEDIA-PRESS: On January - July Kazakhstan increased the oil production by 10% in comparison with the analogous period of the past year and brought it to 25.731 MM tons.
BAKU.15.08.2003.MEDIA-PRESS: The Chinese National Petroleum Corporation (CNPC) has purchased 35% share in Kazakhstan oil field Severniye Buzachy. This significant bag was purchased by it from the Company Nimr Petroleum from the Saudi Arabia.
BAKU.15.08.2003.MEDIA-PRESS: Tests of the first phase on oil transportation form the Caspian countries to the Iranian OPP by the pipeline Neka-Teheran and swapping it by the equivalent volumes of the Iranian oil in the Persian Gulf.
BAKU.15.08.2003.MEDIA-PRESS: The report of BP, according to which the oil supplies in Iran make 8.6% of all the world supplies is not true and is based on the old information, the Minister of Oil of this country Mr. Bijan Namdar Zangane has declared.
BAKU.15.08.2003.MEDIA-PRESS: On January - July the National Business Support Fund of Azerbaijan (NBSF) has paid out credits to small and middle ventures by a total of 26.194 bn manats, - this was told to the Agency "Interfax - Azerbaijan" in the Ministry of Economic Development of Republic.
BAKU.15.08.2003.MEDIA-PRESS: Russia, Ukraine and Turkmenistan can start the next conflict for gas. This is told in the newspaper "Izvestiya".
BAKU.15.08.2003.MEDIA-PRESS: The International Fund of the Election Systems (IFES) will organize a delivery of no less than 7500 transparent election ballot-boxes to Azerbaijan within agreement with the Central Election Department for their applying in the President Elections. Mrs. Anna Viktorovska, the Deputy Chief of the Baku IFES Representation has informed about this, Interfax reports.
BAKU.15.08.2003.MEDIA-PRESS: For the first seven months of 2003 earnings of the State Social Protection Fund of Azerbaijan made 1trln. Manats and exceded the predicted rates by 5.1%. 617.9 bn manats from this sum made dues on certain social insurance and 380 bn manats - means of the state budget. The Director of the State Social Protection Fund Mr. Salim Muslimov has declared this at the press-conference.
BAKU.15.08.2003.MEDIA-PRESS: The State Social Protection Fund of Azerbaijan has completed the development of the project on creation of personal discount cards for each working. In the next time it will be presented for consideration to the Government, the Fund Director Mr. Salim Muslimov has informed.
BAKU.15.08.2003.MEDIA-PRESS: Up to the end of the current year Azerbaijan can receive the fourth credit tranche of the International Monetary Fund within frameworks of the antipoverty program and economic growth assistance (PGGF) in a volume of $16 MM.
As Media-Press has been informed in the Economic Operations and Marketing Management of the SOCAR, Chevron Texaco had been recognized a winner of the first tender on purchasing the September party of the Azerbaijan oil in a volume of 80 thou tons. Its shipment from the port of Novorossiysk is planned by the beginning of September. On September it is planned to pump 220 thou tons of oil by the northern route. A winner of the tender for the rest 140 thou tons of oil will be determined in a week.
We shall remind that two Swiss companies VITOL S.A. and Taurus Petroleum has become buyers of the previous August oil party of the SOCAR, exported by the route Baku-Novorossiysk.
In the next months up to December monthly oil pumping by the "northern route" will make 220 thou tons of oil, and 140 thou tons on December. This is connected with that in this period problems for bad weather may appear again in the Novorossiysk port. Besides, in winter it will be necessary to deliver more raw oil product to the Azerbaijan OPPfor a mazut production.
Totally for 2003 the SOCAR should transport 2.5 MM tons of oil by the route Baku - Novorossiysk. Since the beginning of the year 1.605 MM tons of oil have been pumped by the "northern route".
CSC HAS RECEIVED A NEW OIL CARRIER TO A BALANCE
A deadweight of the oil carrier is 8 thou tons, it has a double body, modern navigation equipment and its dimensions are counted for traveling by inner waters of Russia.
Also it was told in CSC that by order of it else two oil carriers with a deadweight of 12 thou tons of each one will be built in the Russian enterprise. In accordance with safety requirements of the International Marine Organizations they also will have double plating and be able to transport two marks of oil products simultaneously. This should prevent oil contamination in a case of emergency. The building of the ships is carried out for the means of the Caspian Shipping Company. A total cost of the contract on all four oil carriers makes $44.5 MM.
Now there is 69 ships on the balance of the CSC: 34 tankers and 35 dry-cargo carrier. In the past year 7.3 MM tons of oil and oil products were transported by the ships of the shipping company at a total volume of cargo transportation of 11.4 MM tons. In 2003 a increase of transportations by 10% is expected.
KAZAKHSTAN HAS INCREASED THE OIL PRODUCTION BY 10% FOR THE YEAR
By the information of the Statistic Agency of Kazakhstan, production of the gas condensate has grown by 20% for the same period and made 3.453 MM tons. The gas production in the country for seven months made 3.985 bn cubic meters and this is by 15% higher than a year ago.
CHINA AMPLIFIES EXPANSION IN THE OIL SECTOR OF KAZAKHSTAN
However, CNPC intends to purchase and a share of an operator of the field - the American Company ChevronTexaco. The deal should be made rather soon, it was reported in the press-service of the Companuy.
Kazakhstan is the largest (after Sudan) place of the Chinese investments in the oil and gas complex abroad.
Severnie Buzachi with its potential oil reserves of 1bn bbl produces at the present time 8 thou bbl of oil per a day. This oil will probably be transported by the oil pipeline, which is in the project stage for the present to the Sintszyan-Uygur Autonomous Region of China.
The visit of the President Khu Tsintao to Kazakhstan served a supplementary stimulus into the Chinese-Kazakhastan cooperation, Reuters informs from Singapore.
THE TEST TRANSPORTATION OF OIL FROM THE CASPIAN REGION TO THE IRANIAN OPP AND SWAPPING IT BY THE EQUIVALENT VOLUMES OF THE IRANIAN OIL IN THE PERSIAN GULF
The first phase of the project included a delivery of 120 thou barrels of oil per a day through the Iranian port Neka to the OPP of Tehran and Tebriz, the Executive Director of the Iranian National Engineering-Construction Oil Company Seyed Reza Kesay-zade. By his words the carrying out of the first phase will bring earnings of $90 MM per a year for Iran.
At the present time a cost of the transportation of one ton of oil makes no more than $16 in dependence from far distance and as well as from quality and quantity of the hydrocarbon raw products.
By the words of Mr. Kesay-zade, the given project provides oil deliveries to Iran from Turkmenistan, Kazakhstan as well as Azerbaijan and Russia and transportation of the equivalent oil volume to importers from the terminals on the island Khark in the Persian Gulf and also reception of payments for oil transportation by swap scheme. (Media-Press: Azerbaijan delivers to Iran not oil, but oil products. So for the first six months of 2003 Azerbaijan delivered 38 thou tons of car benzene to Iran. And for the present a question of the further oil products exportation to this country is not discussed, as oil products deliveries to Iran are carried out irregularly).
Mr. Kesay-zade considers that in result of carrying out the project on deliveries of the Caspian raw oil by a swap scheme mutual interests of Iran and neighbor countries will be kept and it will serve in its turn to strengthening the relation between them. By his words, signed agreements show sufficient availability of causes for carrying out of oil deliveries to Iran by the Caspian countries and its further processing in this country.
At the present time contracts on deliveries of 120 thou bbl of oil per a day have been signed and suggestions on increasing these deliveries have came in. Mr. Kesay-zade expressed a hope that the oil pipeline Neka-Tehran will be officially put into operation by the end of September.
MR. BIJAN ZANGANE: THE REPORT OF BP ON OIL SUPPLIES IN IRAN IS NOT TRUE
In his interview to the Agency PARS the Minister has noted that with an account of the last geological data and increasing the yield efficiency of the fields Iran has 13% of the world oil supplies. At the last time the Ministry of Oil of Iran did not make available a information to the international companies and organizations about explorations and yield efficiency increasing measures on the developed fields. In the very next time these informations will become available, Mr. Zangane has noted.
By the estimations of the Minister, the oil supplies, which may be produced additionally on the developed fields, make 130 bn bbl. This oil is produced in account of increasing the efficiency of layers in result of pumping the gas to wells and this rate exceeds 20%. In result of using new technologies this rate will become higher and thus subsidiary oil volumes also will exceed a rate of 130 bn bbl, Mr. Zangane has noted.
BUSINESS SUPPORT FUND OF AZERBAIJAN HAS PAID OUT CREDITS BY A TOTAL OF 26 MM MANATS FOR SEVEN MONTHS
"In account of allocated means 211 projects were financed. 43 of them will be realized in Baku, and the rest 168 in the other regions of Azerbaijan", - it was noted in the Ministry.
In 2003 it is supposed to transfer 50 bn manats to the Fund for crediting small and middle ventures and else 7 bn manats for creation of new job places. In 2004 Azerbaijan will increase payments from the state budget to the National Business Support Fund up to 100 bn manats.
Crediting the projects started since November 1, 2002 after approval of new regulations of crediting by the Fund and determination of banks-agents. On November - December of 2002, 49 projects in 18 regions by a total of 8.4 bn manats were financed in account of the Fund means.
The interest rates on credit, attracted for realization of the projects in the trade field makes 4% per a year, in the sphere of industry - 2%, mass-media - 0.5%. Banks-agents have a right to increase rates for using a credit, however their total should not exceed 7%; for the projects of mass-media this limitation makes 5% per a year.
For the present 12 banks are the agents of the Fund of Crediting the Small and Middle Business.
"IZVESTIYA": RUSSIA, UKRAINE AND TURKMENISTAN ARE IN FRONT OF THE NEXT CONFLICT FOR GAS
Such tense situation has been caused by disagreements around the project of the construction of the new pipeline for gas transportation from the Central Asia to Ukraine through the Russian territory. Russia does not want to build this pipeline, however it similar will be forced to yield to a pressure of Kiyev and Ashgabad.
Moreover, already long ago there is not a belief in interaction within the gas production sphere between Russia, Ukraine and Turkmenistan, the newspaper continues further. Ukraine was engaged in so called "unsanctioned gas reception" for a long time enough and caused am anger of "Gazprom". Turkmenistan not without grounds claimed Russia in that it speculated by the Russian gas in Europe. Moreover, at the last time Moscow, Kiev and Ashgabad stopped exchanging mutual claims and tried as if to develop a constructive cooperation.
Main gas transport lines of Ukraine are necessary for "Gazprom": they pump chief gas volumes of Russia to Europe. Turkmenistan also is extremely important for Moscow: gas purchased from Ashgabad for prices, which are much lower than the world ones may be delivered by "Gazprom" to both the Russian consumers, as export it to Europe. And "Gazprom" is one of the best world wholesale purchasers for Turkmenistan, and the energetic balance of Ukraine will not be able to be formed even on a half.
Meanwhile, as Media-Press has noticed sometimes the information about that Ashgabad bluffs with "Gazprom" speaking about strategic union with it and at the same time conducts talks about gas cooperation with other partners. As the newspaper "Vremya Novostey" writes in particular, in spite of signing scale agreement with "Gazprom", which was obliged to purchase almost all the Turkmen gas during 25 years, Ashgabad starts conduct plays around the TransAfghan gas pipeline. The Moscow newspaper quotes the newspaper "The Khaleej Times" issued in the UAE, which notes that Pakistan is sure that Mr. S. Niyazov will not deliver gas to Russia. As the Deputy Minister of Oil of Pakistan Mr. Naim Beyga has declared, "from the name of Mr. Saparmurad Niyazov we were fully confirmed that the project of Transafghanian pipeline remains of high priority for Turkmenistan and gas fro Dovletabad had been preserved fully only for the Project Turkmenistan - Afghanistan - Pakistan".
That is why, "Izvestiya" believe, any news about union of two partners from tree ones Russia - Ukraine - Turkmenistan against the third in the situation of mutual unbelief is able to bring to the international scandal and stagnation of the base sectors of these countries. Moreover, they in the state Ukrainian gas company ("NAK Ukraini") declared to "Izvestiya" commenting the information about talks on such cooperation between Kiev and Ashgabad that do not conduct similar negotiations about the construction of subsidiary routes for pumping the Turkmen gas to Ukraine. A possibility of laying new pipelines was discussed during trilateral negotiations only in spring of this year, and it was not discussed later any more. "Then a initiative belonged to the President of Turkmenistan. Just he suggested building the pipeline from the fields of Turkmenistan to the Saratov center, which is not far from the Russian-Kazakhstan frontier. A laying the pipeline through all Russia was not discussed at all. For the present we prepare for the negotiations on this problem, which should take place on September 14 at the summit meeting of the CIS in Yalta", - the source in the Ukrainian company has declared.
We shall remind that in spring the President Mr. S. Niyazov performed a initiative of the construction of the Caspian pipeline. Meanwhile "Gazprom" suggests to Turkmenistan to develop the FR of several versions of reconstruction and then solve a problem about expediency of the construction of this gas pipeline, which will cost $2.5 bn. Initially "Gazprom" suggested to be limited by only modernization of the existing gas pipeline through Uzbekistan and Kazakhstan (Middle Asia - Center) (for increasing the Turkmenian gas export by 2009) and expenditures for it have been put in the plans of the company (about $2 bn). And it is not of small importance that a dominant role in the Caspian gas pipeline was not guaranteed for "Gazprom": the President Mr. S. Niyazov has declared at once that "Naftogaz Ukraini" and other structures may take part in the project.
Furthermore, as Media-Press has noted that after the visit of the high-ranked delegation to Ashgabad, "Gazprom" as if managed to persuade Turkmenistan to not hurry with the project: the sides agreed about signing the contracts on conduction of the project and research works, during which FR of different versions of the modernization of gas networks of the Middle Asia will be worked out. A choice in favour of the project "The Middle Asia - Center" or new routes will be done by the results of comparison of the FR. Obviously, it will happen no earlier than 2004 - at least, this time will allow "Gazprom" to find new arguments against starting "the Century Construction" forced to it.
As "Izvestiya" notes, "Gazprom" carefully watches for all activities of Ukraine and Turkmenistan. In accordance with the words of the representative of this company, "pressure efforts are possible and it should be careful".
The analysts believe that "Gazprom" should use all available opportunities to deliver gas by doses from the Central Asia. "The new gas pipeline from the fields of Turkmenistan is able to increase the potential of this country as the supplier, - the analyst of the bank "Troyka Dialog" Mr. Valery Nesterov considers. - However, Russia should not create a competitor for itself by own hands: Turkmenistan is not able to present a real danger at the European gas markets".
Meanwhile, it is similar, Ashgabad and Kiev play still "the third is left over". As Media-Press noted, Ukraine threats to limit a growth of the Russian gas export to Europe if they in Moscow will not agree with the realization of the Ukrainian-Turkmen project. As it is known, the Premier of the RF Mr Michail Kasyanov received a refusal from his Ukrainian colleague Mr. Victor Yanukovich in his request of increasing the pumping of the Russian gas through the territory of this country. Kiev motivates his decision by that in the first turn the Central Asian and the Turkment gas will fill the pipelines. We shall remind also in this context about that recently the Turkmen and Ukrainian Presidents agreed to construct the Caspian pipeline from Turkmenistan. It should deliver annually 30 bn cubic meters to Ukraine.
THE ORGANIZATION IFES ORGANIZES A DELIVERY OF 7 THOU BALLOT-BOXES TO AZERBAIJAN
By her words, the Embassy of FRG will be engaged in purchasing and delivering 5 thou ballot-boxes, and the US Development Agency will supply the rest 2.5 thou ballot-boxes. "The ballot-boxes will be distributed by all over almost 5 thou election districts of the country", - she has said, and informed that the IFES also talks with the diplomatic Representation of Holland in Baku about delivery of transportable ballot-boxes.
The IFES carries out a technical assistance to Azerbaijan in elections conductions as well as preparation for necessary legal base.
FOR SEVEN MONTHS OF 2003 EARNINGS OF THE STATE SOCIAL PROTECTION FUND OF AZERBAIJAN HAVE MADE 1 TRLN MANATS
By his words, 206.4 bn manats made dues of the budget organizations on certain social insurance and 441.5 bn manats - dues of out of budget organizations. In comparison with the analogous rates of the past year the dues of out of budget organizations increased by 100.9 bn manats. Owing to this fact the Fund could to pay out pensions and other monetary allowances in a time. In total, for seven months of this year 879 bn manats of the Fund budget were transferred for these purposes, and this is by 124.6 bn manats more in comparison with the analogous period of the past year.
The Director of the Fund also touched the recent Edict of the President of Azerbaijan about increase of minimum wages. By the words of Mr. Muslimov, Azerbaijan intends to receive a membership in the European Social Charter. Increasing minimum wages and bringing it to a minimum life level over a country is one of requirements of this Charter. Stage by stage increasing the minimum wages is planned in Azerbaijan. Today it was increased up to 45 thou manats and it is expected to increase it up to 60 thou manats. We shall note that in accordance with the State Poverty Reduction and Economical Development Program the life minimum in Azerbaijan makes 120 thou manats.
THE SOCIAL PROTECTION FUND OF AZERBAIJAN HAS COMPLETED A DEVELOPMENT OF THE PROJECT ON CREATION OF PERSONAL DISCOUNT CARDS OF EMPLOYEES
The Project provides organizing the computer base of data, which will include information about labour activities of each man, his length of service monthly payments to the Social Protection Fund. Such base significantly will simplifies a procedure of pensions assigning. A pensioner should only appeal to the pension Fund, and not to spend a strength and time for receiving a lot of certificates. A total of pension will be calculated in dependence of the sum, transferred to the Fund a length of service of a man.
$5.281 MM will be required for the realization of the project. The Social Protection Fund will allocate $1.5 MM from the own funds, the UN Development Program - $300 thou, and it is planned to borrow the rest sum from the international finance structures.
Mr. S. Muslimov especially has noted that the working group of the project intended to reduce up to maximum forthcoming expenses. So in Moldova the realization of similar project has cost in $8 MM, although a population number of this country is less than in Azerbaijan. Azerbaijan refused of consultants and this has brought to reduction of project cost.
UP TO THE END OF THE YEAR AZERBAIJAN CAN RECEIVE 4TH CREDIT TRANCHE OF THE IMF BY A TOTAL OF $16 MM ON THE ANTIPOVERTY PROGRAM.
As "Interfax" informs, the Minister of Finance of the country Mr. Avaz Alekperov has declared that "the Government of Azerbaijan has the opinion agreed with the Fund about receiving one more grant on the project of poverty reduction and economic growth assistance (PRGF) up to the end of this year".
By the words of the Minister, the ICF supports a conduction of the economic reforms in Azerbaijan. Improvement of the economic rates for the last years have occurred owing to the Fund too. For the last years the Government studies a question on the necessity of borrowings from the Fund. Credits were received from the IMF for covering the deficiency, however we need not this now", - Mr. A. Alekperov has noted.
With this the Minister has emphasized that after the PRGF program realization completion the Government of Azerbaijan probably will cooperate with the IMF only in a way of consultations.
In the beginning of September the IMF mission headed by the Deputy Chief of the Second European Department Mr. John Weckman-Lynn. The experts of the Fund will familiarize with the course of executing the IMF recommendations by Azerbaijan, and on the base of their conclusions a decision on a possibility of allocation of the fourth credit tranche.
The Program on the Poverty Reduction and the Growth Promotion in Azerbaijan evaluated by $100 MM have been designed for a term up to 2005. In 2001 - 2003 Azerbaijan has received two tranches from the IMF by $10 within frameworks of the program and the third one of $16 MM on May of 2003. The means are provided for a term of 10 years with 5.5 year favourable period with 0.5% rate. Totally since 1992 Azerbaijan has received credits of the Fund by $400 MM.
