THE FIRST EXPLORATION WELL ON THE OFFSHORE STRUCTURE D-222 "YALAMA" WILL BE DRILLED IN 2004
He has noted that the drilling never has carried out in this Caspian Region and so the main goal of the drilling workers is studying the geological cut structure, discovering and studying the oil and gas horisons, determination and preliminary geological-economic estimate of the industrial hydrocarbon supplies. During the exploration period it is supposed to drill two wells.
Earlier it was supposed to conduct a drilling from the semisubmersible drilling rig (SDR) "Istiglal", however after putting into operation of the SDR "Leader" it was decided to carry out sinking from it. Mr. R. Bagmanov has told that now the company conducts negotiations with the drilling club about the rent of "Leader".
We shall remind that the construction of the SDR "Leader" with a cost of $250 MM was conducted since the summer 2001 at the same time in Baku by the Azerbaijan-Singapore JC Caspian Shipyard Company Ltd. and in Singapore by the company Keppel Fells.
"Leader" has become the most powerful SDR in the Caspian Sea. Its equipment allows to drill wells up to a depth of 9140 meters (30 000 feet) at a depth of the sea up to 1000 meters. The SDR will operate in the drilling of the exploration wells at the contract areas "Nakhchivan", "Zafar - Mashal", where ExxonMobil is a operator, and also on the field "Yalama" (operator - "LUKoil"). It is expected that "Leader" wil go to the first work on September already.
The unit D - 222 is a part of the perspective structure Yalama, which is situated in approximately equal parts in the Azerbaijan and Russian sectors of the Caspian Sea at a distance of 30 km from a shore. A depth of the sea varies there from 80 up to 700 meters. A probability of discovering new industrial hydrocarbon supplies is estimated as on high level. In the second half of 2004 it is planned to start a drilling of the first exploration well in the contract area D-222 with using the SDR "Leader".
On July 1997 the agreement on joint exploration and development of the unit D-222 between the SOCAR and LUKoil was signed and on December 5 of the same year it was ratified. The supposed volume of ivestments to the project is $2.5bn.
ENLARGING THE CONTRACT AREA OF THE OFFSHORE STRUCTURE D-222 "YALAM" AND INCREASING A SHARE OF "LUKOIL" IN THE PROJECT UP TO 80% HAVE COST FOR THE RUSSIAN COMPANY BY A TOTAL ABOVE $100 MM
We shall remind that in the end of March LUKoil and the State Oil Company of Azerbaijan signed the paper bag of agreements about supplementary conditions of explroration and development of the sea unit D-222 "Yalama". It provided reyielding in behalf of the Russian company 20% of the SOCAR share and increasing in such way the sharing of the Russian company up to 80%. Moreover, the sides agreeed on enlarging the contract area of "Yalama" from 1287 sq.km. up to 3037 sq.km.
The reyielding 20% share of the SOCAR in behalf of the Russian partner means that LUKoil will finance all operations in "Yalama" by 80% but not 60% as it has been planned earlier. The next dividing the production will be carried out in the new proportion - 80 to 20.
The unit D - 222 is a part of the perspective structure Yalama, which is situated in approximately equal parts in the Azerbaijan and Russian sectors of the Caspian Sea at a distance of 30 km from a shore. A depth of the sea varies there from 80 up to 700 meters. A probability of discovering new industrial hydrocarbon supplies is estimated as on high level. In the second half of 2004 it is planned to start a drilling of the first exploration well in the contract area D-222 with using the SDR "Leader".
On July 1997 the agreement on joint exploration and development of the unit D-222 between the SOCAR and LUKoil was signed and on December 5 of the same year it was ratified. The supposed volume of ivestments to the project is $2.5bn.
THE CHIEF OF THE BAKU REPRESENTATION OF LUKOIL HAS NOT ANY INFORMATION ABOUT A PROBABILITY OF LEAVING THE PROJECT "SHAKH-DENIZ" BY THE COMPANY.
We shall note that the information about possible sale of the LUKoil share in the project "Shakh-Deniz" is in the analytic review of the investment company "ATON". The analysts of "ATON" believe that just "Shakh-Deniz" is in the first place in the sale list of "LUKoil".
Earlier LUKoil sold his 10% sharing in the project of the development of the unit of the Azerbaijan offshore fields "Azeri-Chiraq-Guneshli" (ACG) for 1.35 bn dollars to the Japanese company Ipex.
LUKoil shares by only 5% in the project of the development of the offshore gascondensate field "Shak-Deniz".
The estimation supplies of the field "Shakh-Deniz" make 1 trln cubic meters of gas. The following companies are shareholders of the project: BP (25.5%), the Norwegian Statoil (25.5%), the SOCAR (10%), the French-Belgium TotalFinalElf - 10%, the Russian "LUKARKO" - 10%, the Iranian OIEC - 10% and the Turkish TPAO - 9%.
KAZAKHSTAN WANTS TO COOPERATE WITH IRAN IN OIL AND GAS PRODUCTION IN THE CASPIAN SEA
By the words of the diplomat, Kazakhstan supports the idea of openning the new of the Kazakhstan oil transportation route by the railway and express a hope that Iran will be able to make positive steps in this trend.
As Mr. Khamdolla Mokhammed Nejad has noted in his own turn a problem of the construction of the pipeline KTI was discussed during the meeting of the Presidents of Iran, Kazakhstan and Turkmenistan and the idea of the pipeline construction was approved. Turkmenistan also is ready for fruitful cooperation in this matter. In connection with this that Kazakhstan plans increase of oil production on the fields including such rich ones as "Kashagan", Iran is ready for any cooperation with Kazakhstan for assistance in receiving admittance to the international energetic markets, he noted.
THE SAUDI ARAVIA WILL TRY TO PERSUADE RUSSIA TO JOIN IN THE OPEC
The Minister will escort the Cron-Prince Abdulla, the governer of the Saudi Aravia de-facto in his visit to Russia. It is planned by September 1 - 4. This is told about in the iformation list of the IA "Consultant".
34.8 BN CUBIC METERS OF GAS AND 5.6 MM TONS OF OIL HAVE BEEN PRODUCED IN TURKMENISTAN FOR SEVEN MONTHS
By the information of the Ministry, at the present time new gas bores on some fields are prepared for operation start including on the largest Dovletabat field. For seven months of the current year 5.6 MM tons of oil were produced 5.6 MM tons of oil with account of oil deliveries from the frontier field Kokdumalak, and the State Concern "Turkmenneft" produce 4.5 MM tons of them. Foreign partners provided the main oil production growth.
THERE WILL NOT BE DELAYS WITH SHIPMENT OF THE AZERBAIJAN RAILWAY OIL TANKS ON THE BATUM OIL TERMINAL IN THE FORTHCOMING WINTER
By his words, the modernization has been conducted on the Batum terminal and its capacity has been brought to 10 MM tons. Nevertheless, the Ambassador has added that delays with tanks shipment also will depend of weather conditions, what in its turn affects on timely arrival of the oil carriers to the port. The Azerbaijan Railway has 4 thou tanks, by which transit and Azerbaijan oil is transported to the Georgian port Batumi. However for the technological imperfectness of the Georgian Railway and port the tanks do not return to Azerbaijan in time and the ARW incurs great losses.
Earlier the first Deputy Chief of the ARW Mr. Musa Panakhov has disproved an application of the representative of the British Company Alegtrans about delays of the tanks loaded with oil on the territory of Azerbaijan. (Alegratrans is engaged in oil and oil products transportation from the Caspian Sea to the Black Sea and is the operator of the Batumy oil terminal). By the words of Mr. M. Panakhov, the majority of tanks is delayed in Batumy for untimely shipment. "If "Alegratrans" normally ships them normally our transport opportunities will grow by 1.5 times", - the Deputy Chief of the ARW has emphasized. We shall note that daily the Azerbaijan Railway transports up to 500 tanks though up to the recent time the unloading capacities of the Batum Terminal has made 400 tanks. Now the capacity of the terminal has been increased. May be, it will help to solve the problem.
"AZERENERJI" PREPARES FOR THE WINTER
According to its press-release, 60% of a total volume of repair-prophylactic works, planned to be completed by the middle of October were carried out at the largest SREPS "Azerbaijan", which produces more than a half of a total electric power produced in the country. The conducted measures will allow the increase of the station productivity up to record value for the last ten years - 2015 MVt. After the repair-prophylactic works at the Alibayramly SREPS, which produces almost 33% of a total electric power in the country the electric power production will grow up and its capacity will make 900 - 910 MVt. The analogous works are conducted at the other objects - the Baku Thermoelectric Power Station TEPS-1, Mingechavir HEPS, cascade of the Shamkir hydroelectric power stations, Enikend HEPS. It is planned to complete a major part of works by the end of September.
THE ERDB AND IFC WANT TO PURCHASE SHAREHOLDINGS OF THE AZERBAIJAN BUSBANK
As the Minister of the Economic Development of the Republic Mr. Farkhad Aliyev has informed, a part of bank stocks will be realized at open auctions. However, he has noted, the strategic investor wants to be informed about other purchasers of the bank stocks.
In accordance with the Edict of the President of Azerbaijan dated from April 17 2003, the Ministry of Finance of Azerbaijan and National Bank were ordered to complete a work on constitutional construction of the BUS Bank and prepare it for privatization. Simultaneously negotiations should be conducted with high rated banks and leading investors and privatization of the former Savings-Bank should be provided.
We shall note that by results of 2002 the incomes of the BUS Bank made 34.9 bn manats, expenditures - 27.6 bn manats, and profits - 7.3 bn manats. The free actives of the bank were transferred for purchasing the securities. Moreover, the BUS Bank is an operator of the realization project of the state obligations and sold them in the last year by 10 bn manats and this allowed to get 195 MM manats of profits. As a whole the BUS Bank controls for 4 - 5% of the bank market of the country. However, in conditions of offering new kinds of services at the market it would be possible to increase this share up to 10%. The BUS Bank has signed an agreement with the Turkish Company "Barmek Holding", managing by the Baku electric network and the JC "Azerigaz" about reception of the payments for consumed electric energy and gas from the population.Moreover, 650 thou persons, which make 45% of total number of pensioners receive pensions in the bank.
IN THE BEGINNING OF SEPTEMBER THE EXPERTS OF THE ERDB WILL CONDUCT NEGOTIATIONS IN BAKU ON PURCHASING THE 20% OF ACTIONS OF THE INTERNATIONAL BANK OF AZERBAIJAN
By the information of the Minister of the Economic Development Mr. Farkhad Aliyev, estimations of the IBA cost and conditions of its privatization have been determined. "We conduct negotiations with the delegation of the ERDB on the cost of 20% shareholdings and its realization order. After this the cost of the IBA will be announced and sale terms of the rest stocks bag of the IBA remained in the state ownership". - Mr. F. Aliyev has said. In accordance with the Edict of the President of Azerbaijan dated from April 17 2003, suggestions on order and conditions of privatization of the state share in the IBA should be developed up to August 30. Besides of this in accordance with the present laws, a sale of the rest part of the state share in the authorized capital of the IBA should be provided at the monetary auctions.
IN FUTURE THE JOINING OF POLAND, SLOVAKIA, ROMANIA, KAZAKHSTAN TO GUUAM IS POSSIBLE, THE FOREIGN MINISTER OF UKRAINE THINKS
In the same time Mr. A.Zlenko has noted that today the main attention is paid to attraction of other countries, including Poland, Slovakia, Romania, Kazakhstan as observers. "For the present I am not able to call abybody, who is ready to apply for joining in GUUAM", - the Foreign Minister of Ukraine has said and added that conducted consultations allow him to affirm that such possibility is not excepted in the future.
Georgia, Ukraine, Azerbaijan and Moldova united in 1997 for foundation of the European transport corridor Europe - Caucasus - Asia and operated sea, river, rail, car ways for transportation of passengers and cargo. In 1998 Uzbekistan joined to them.
ABOVE 100 GRADUATES OF THE SECONDARY SCHOOLS OF AZERBAIJAN WILL LEARN IN THE BEST PRESTIGE INSTITUTONS OF HIGHER EDUCATION FOR GRANTS OF THE RUSSIAN GOVERNMENT
By his words, for the last two years a number of the Azerbaijan leavers wishing to get the higher education in Russia has increased more than in 15 times. Since this year they will learn not only in Moscow and Saunt Petersburg, but in Ekaterinoburg, Samar, Volgograd, Bryansk. Moreover, as the diplomat has noted, now they go to Russian to learn not only the Russian language and literature, but informatics, economics, management and medicine. Totally, in 2003 Russia provided 122 educational vacancies in its institutions of higher education for Azerbaijan, Mr. P. Shenshin.
ON THE EVE OF SEPTEMBER 1 RUSSIA DELIVERED MORE 200 THOU TEX-BOOKS TO THE RUSSIAN SCHOOLS
The Ivanovka School is one of the oldest in the country and celebrated recently its 120th Anniversary. Descendants of the Russians, who migrated to Azerbaijan still before its joining to Russia in 1828, learn here. By the words of Mr. P. Shenshin, the Russian Embassy is patron of his school. Text-books are delivered here annually for grants of the Russian Government.
The diplomat also informed that in total 212 thou textbooks were delivered already to pupils of the Russian schools in Azerbaijan. They have been printed in Russian and else 12 thou ones will be delivered to Baku by September 1. At the present time 139 thou persons of the Russian nationality live in Azerbaijan, population of which numbers almost 8 million people.
THE V WORLD CONGRESS OF THE RUSSIAN LANGUAGE PRESS WILL BE HELD ON SEPTMBER 18 - 21 IN BAKU
The Forum program provides meetings of the participiants with the Government and social organizations of the country, familiarization with the local press activity, the sights of Baku.
ON SEPTEMBER THE CONFERENCE OF THE BLACK SEA COUNTRIES ON TOURISM WILL BE HELD IN BAKU
"Opportunities for the tourist business in the region, ways of simplifying of the visa procedures, organization of the regional tourist routes will be discussed at this conference", - he has noted. By the words of Mr. Karayev, conduction of the thematical exhibition, where each country will present of its own program is planned within frameworks of the conference. Representatives of Turkey, Russia, Ukraine, Georgia, Moldova, Romania, Albania and Greece will take part in the work of the conference.
Moreover, the Minister has noted, at the first time in Baku the 1st International Festival of Tourist Films will be held, where about 60 documentaries will be available for watching. The best ones will be awarded and sent to all international tourist agencies as illustrated materials. Mr. A. Karayev has noted that Azerbaijan has a large potential for tourism development, so in 2002 the government of the country has developed the national tourism program. Its main goal is making Azerbaijan attractive country for the international tourism and tourism profitable and developing field of the Azerbaijan economy.
