Media Press

IN 2015 IRAN WILL PRODUCE 320 MM TONS OF OIL

BAKU.27.10.2003.MEDIA-PRESS: In 2015 Iran will produce 6.4 MM bbls of oil daily or 320 MM tons per a year. The Deputy Minister of Oil of Iran Mr. Akbar Torkan has declared about this.

Simultaneously he has regretted that the oil production rate is quite low and makes in average 26.86% and expressed his hope that in soon this rate will grow up to 27.5% and even up to 30%. However, in this case the Iranian oil workers will produced totally 130 bn bbl of oil from 500 bn bbl from explored by the present time. The increase of the production rate only by 1% will give 5 bn bbl of oil or $100 bn at the present prices. Answering to the question on negotiations with the leading world companies relatively to development of the giant field Azadegan, Mr. Akbar Torkan has said "Iran looses nothing from the refusal of the Japanese companies; but just they have missed the best opportunity for sharing in the operation of this field".

ISLAMABAD HAS ACCEPTED THE OFFER OF TEHRAN ON THE CONSTRUCTION OF THE GAS PIPELINE IRAN - PAKISTAN WITHOUT THE PARTICIPATION OF INDIA

BAKU.27.10.2003.MEDIA-PRESS: Islamabad has accepted the offer of Tehran on the construction of the gas pipeline from Iran to Pakistan without the participation of India. As the official of the Ministry of Oil of Pakistan has informed, the Premier of the country Mr. Zafarulla Khan Jamali has approved the idea of the construction during his three days visit to Tehran. However, the project will be realized only in that case when India will refuse of the cooperation.

"It was supposed that the pipeline will be laid through Pakistan up to India. However, as India has not taken a decision for the present, Tehran offered the laying the gas pipeline between Pakistan and Iran and we accepted this offer", - Mr. Z. K. Jamali has informed in the press conference. As officials of the Ministry of Oil have been noted, at the next time the officials of Iran and Pakistan will start the preparation of the feasibility report of the project, the Associated Press reports.

Earlier India declared that probably would refuse of sharing in this project for its economic inexpediency. However, most likely the political goals, but not economical ones have caused the refusal of India. Dehli does not want, that Islamabad would be able to shut down the gas valve in a case of the next crisis in so strained bilateral relations and deprive India of the Iranian gas deliveries. As well the Russian "Gazprom" has declared about possibility of its sharing in the project of the pipeline Iran - Pakistan - India. Else in the end of 2002 the delegation of "Gazprom" and the Ministry of Oil and Natural Resources of Pakistan has signed the mutual understanding memorandum in Islamabad. In accordance with this document, "Gazprom" should conduct the preliminary researches and make the feasibility report by the route of laying the gas pipeline Iran - India through the Arabian Sea. Moreover, "Gazprom" receives a right of conducting the negotiations on attraction the investments to the realization of the project. And the next future of this project is unknown. The cost of the project exceeds $3bn. A length of the piece of the gas pipeline between Iran and Pakistan province Sind will make 1600 km, between Pakistan and India (in a case of agreeing of the last one) - 1thou km. The annual profit of Pakistan from the transit of gas to India was able to make $600 MM per a year. We shall remind that Pakistan discusses also two other projects of the long-term gas deliveries - from Catar and Turkmenistan (through Afghanistan). Ashgabad also has been interested in laying this pipeline with a length of 1460 km up to India.

THE AUTHORITIES OF AZERBAIJAN WILL NOT ALLOW THE PROVOCATIONS FROM THE SIDE OF THE RADICAL RELIGIOUS GROUPS

BAKU.27.10.2003.MEDIA-PRESS: The Azerbaijan leadership will take all necessary measures for struggle against efforts of the radical religious organization to destabilize the situation in the country. The Chief of the State Committee on the Religious Organizations Mr. Rafik Aliyev has declared this to the Agency "Interfax-Azerbaijan".

By his words, the authorities have information on these groups, including vakhabbits and aggressive protestants. Mr. R. Aliyev does not except that somebody of them will be able to undertake different kinds of destabilizing actions. "The State Committee keeps the situation under the control and if they break the laws, all necessary measures will be taken in relation to them", - Mr. R. Aliyev has said. "However, I think that events of October 15 - 16 showed clearly that the Azerbaijan Government is able to cut over all efforts of situation destabilization in the country", - he has emphasized. On October 15 - 16 the supporters of the leader of the opposition party of the country "Musavat" Mr. Isa Gambar organized mass disorders in Baku expressing disagreement with his defeat on the President Elections.

TURKEY INTENDS TO REVISE THE AGREEMENT ON THE IRANIAN NATURAL GAS PURCHASES

BAKU.27.10.2003.MEDIA-PRESS: Iran has not intensions of starting again the negotiations on the points of the agreement on its natural gas sales to Turkey. The Tehran newspaper "Entekhab" has informed about this with a reference to the Executive Director of the Iranian National Gas Company Mr. Mokhammad Melaki. As the this official of the Fuel Energetic Complex, the agreement concluded with Turkey has long-term character and Ankara can not refuse of it under on the pretext of too high prices".

We shall remind that the Iranian-Turkish agreement which is estimated by $20 bn and was signed in 1996 is provided for 25 years and based on the principle "take or pay". Today, in accordance with the information of the Turkish Pipeline Company BOTAS, Ankara imports 6 bn cubic meters of the Iranian gas and by 2007 this value should grow up to 10 bn cubic meters. Though the pipeline was ready for operation still in 1999, the deliveries started only in 2001 and have not been stopped by the Turkish side on different pretexts. As well we should note the fact the gas deliveries to Turkey in accordance with already operating contracts exceed its demands by a lot and so at the last years Ankara repeatedly tried to revise conditions of the agreements on the export of "the blue fuel" not only with Iran, but Russia. Moreover, it has been managed to agree with Russia. It agreed to reduce its gas prices for Turkey and as well its annual deliveries by the project "The Blue Stream" from 4 up to 2 bn cubic meters. However, as it is known, Ankara has not quite satisfied by results of the negotiations with the Russian side and even intended to bring an action to the Court of Arbitrage against "Gazprom". Already about half a year the Turkish and Russian experts discuss, for what price should the Russian gas be delivered to Turkey within frameworks of the project "The Blue Stream".

As to deliveries from Iran, the last crisis in relation for gas matter has been emerged just a year ago between Ankara and Tehran, on October 2002. Then pretensions to its quality were a cause of stopping the gas pumping, and simultaneously the officials of BOTAS declared about too high price for the imported Iranian gas. Meanwhile, as the Minister of Iran Mr. Bijan Zangane has said, a reference to the gas quality is only pretext for its import stopping. Turkey is obliged by a lot of large gas contracts concluded with several countries and this made Ankara to stop the Iranian gas import, he has said. We shall note that after series of the mutual visits of high-ranked delegations of both the countries, it was managed to adjust this conflict: the gas pumping renewed and the sides preferred to not tell further about high price for it. However, as the experience shows, it has not been managed completely adjust the conflict. Meanwhile, as the Minister of Energy and the Natural Resources of Turkey Mr. Khilmi Guler has said at the last week, Ankara intends to renew the negotiations with Iran on the agreement of 1996, as the price for gas is too high. By his words, as "Turkish Daily News" informs, at the present time analogous negotiations with Russia are conducted, and since its completion the discussions with the Iranian side should start. In his speech at the sitting in the Industrial Chamber of Turkey, Mr. Khilmi Guler has noted, that for its its geopolitical state, Turkey serves the energetic bridge and it will use this factor on behalf of its national interests. Otherwise, the Minister of Energy of Turkey alludes to Iran that the positions of Ankara in the negotiations with Moscow are sufficiently powerful and they in a very short time will be engaged with the agreement with Tehran. It should be recognized that still Turkey has not managed to win Iran in this dispute, though for the present the last one has not another alternative routes for its gas exportation to Europe.

THE VALUE-ADDED TAX PART WITHIN THE STRUCTURE OF THE STATE BUDGET OF AZERBAIJAN FOR 2004 IS FORECASTED BY A TOTAL OF 31.6%

BAKU.27.10.2003.MEDIA-PRESS: The project of the state budget of Azerbaijan by 2004 provides that the volume of earnings from the value-added tax (VAT) will make 2.199 trnl manats or 31.6% of all budget incomes. As the source in Milli Mejlis (Parliament) of the Republic in comparison with 2003 the volume of earnings from the VAT will increase by 14.6%. By his words, the earnings form the VAT by a level of 742 bn manats have been laid in the project, 950 bn manats have been laid by the income tax, and 350 bn manats have been laid by assets.

Besides, 160 bn manats have been forecasted by the property tax, 70 bn manats - by land taxes taken from the juridical persons, by natural resources taxes - 489 bn manats, by the simplified taxes - 125 bn manats, transit way income - 6 bn manats. The volume of assignments to the state budget from the customs duties is planned by a total of 300 bn manats, 120 bn manats - by the state tax, nonrecurrent dutie - 7 bn, the other incomes - 237 bn manats.

The assignments of the Ministry of the Economic Development from the state property renting within the structure of the incomes of the budget - 2004 are provided by a total of 12 bn manats, grants of the European Union - 50 bn manats, transfers from the State Oil Fund - 650 bn manats. The transfers to the state budget from the income of the National Bank of Azerbaijan are forecasted by 30 bn manats, the out-of-budget incomes of the enterprises, financed from the state budget - 335 bn manats. By plans, 675.5 bn manats should be transferred for maintenance of the state structures, 732.2 bn manats - for defence, maintenance of the law-enforcement and legal organs - 789.9 bn manats, the education - 1trln. 497.7 bn manats, the health - 350.8 bn manats, the social protection and ensuring - 1trln. 185.2 bn manats. Besides, 78 bn manats will be allocated for formation of the reserve fund, repayments for the external debt - about 140 bn manats. The project of the state budget provides the incomes by a level 6.957 trln. manats, expenses - 7.272 trln. Manats, the budget deficiency - 315 bn manats or 0.8% from the GDP. As it has been informed, the Administration of the President of the Republic has represented the budget project for consideratin of the Parliament by October 14 of the current year. The state budget of Azerbaijan for 2003 has been approved with a deficiency of 331 bn manats or 1% from the GDP. The incomes have been provided by a total of 6.092 trln. Manats, the expenses - 6.423 trln. Manats. The official exchange rate by October 27 - 4910 manats/$1.

THE TURKISH JC "A&D" BECAME A WINNER OF THE INVESTMENT COMPETITION WITHIN THE JC "AZERELECTROTERM"

BAKU.27.10.2003.MEDIA-PRESS: The Turkish JC with the limited responsibility "A&D" became a winner of the investment competition on saling 98.7% of the state joint-stocks of the Baku JC "Azelectroterm", the electrotermic equipment and heaters.

As the officials of the Ministry of the Economic Development of Azerbaijan has informed Media-Press, in accordance with the conditions of the competition, during three months after signing the agreement of purchase and sale A&D should transfer 3 bn manats to the state budget and 260 thou privatized checks and the same number of the state options. And for start of the primary works on "Azerelectroterm" A&D should transfer 2.45 bn manats to the accounts of this enterprise.

In accordance with the investment program of A&D the company takes liabilities of investments by total of $49 bn manats ($9.93 MM) to "Azerelectroterm". These funds will be spent for purchasing and installation of the modern presses and welding equipment, reconstruction of the industrial boxes and the infrastructure restoration. The liability of the Turkish company on creation of about 500 new job places on "Azerelectroterm" (now only 92 employees work here) and the average salary of employees of the modernized enterprise should not be less than $200. The JC "Azerelectroterm" has liabilities by a total 10.541 bn manats including debts on salaries - 477.801 MM manats. The volume of the debtor indebtedness is 1.610 986 bn manats. The enteprise has been created in 1969.

THE INVESTMENT COMPETITION WILL DETERMINE THE OWNER OF THE DASHKESAN INTEGRATED MINING-CONCETRATING PLANT

BAKU.27.10.2003.MEDIA-PRESS: The Department of the State Property attached to the Ministry of the Economic Development has announced the investment competition for purchasing the joint-stock company of opened type (JSCOT) "Dashkesan Integrated Mining-Concentrating Plant".

As Media-Press has been informed in the Ministry of the Economic Development, the foreign investors as well as the local ones may take part in the competition. The pretenders for the purchasing Dashkesan IMCP should present the investment program with showing the realization terms and expenses. It should ensure the introduction of the modern technology of the mine concentrating.

FOR NINE MONTHS THE AZERBAIJAN RAILWAY TRANSPORTED MORE 10 MM TONS OF CARGOS

BAKU.27.10.2003.MEDIA-PRESS: 10.879 MM tons of different cargos were transported by railways of Azerbaijan and than has made 108.6% to the planned rates. As Media-Press has been informed in the Azerbaijan Railways Office, the growth of the cargo activities made 9.1% in comparison with analogous period of the past year.

In the total of the transported cargos, oil and oil products made 8.868 MM tons (plan was exceeded by 2.8%), the growth in comparison with the analogous rate of the past year made the same total. For nine months a volume of the passenger transportations made 3.454 persons.

THE UNITING OF THE BAKU PORT AND CASPIAN SHIPPING COMPANY IS IRRATIONAL, THE OFFICIAL OF THE RUSSIAN MARITIME REGISTER THINKS

BAKU.27.10.2003.MEDIA-PRESS: The uniting of the Baku Sea Port and the Caspian Shipping Company is irrational. The Chief of the Azerbaijan Representation of the Russian Maritime Navigation Register (RMNR) Mr. D. Shestakov has expressed his opinion to the Agency "Interfax - Azerbaijan".

"They are two independent organizations, and their uniting may bring to that the port will be crushed by the shipping company, which is the largest owner of ships in Azerbaijan", - he has said.

As Mr. D. Shestakov has noted, there is the Port Monitoring Service, which should control of all vessels coming to the ports, their correspondence to the international requirements, which are offered to all ships in dependence of the country of registration. "In a case of the uniting these functions will be crushed. By the words of Mr. D. Shestakov, there is not an example of uniting of such different structures in the world practice.

On August of the current year the Chief of the CSC Mr. Aidin Bashirov has given documents with a request of consideration of uniting of two companies. The Chief of the Baku Port Mr. Elchin Mirzoev has supported plan of the uniting. The Ministry of the Transport of Azerbaijan including these two organizations has criticized this plan.

BY OCTOBER 1 THE BANKS OF AZERBAIJAN HAVE ATTRACTED 2.749 TRLN MANATS ($559.76 MM)

BAKU.27.10.2003.MEDIA-PRESS: The total of the means and deposits attracted by the Azerbaijan banks by October 1, 2003 has made 2.749 trln manats. This is by 17.8% more than the rates by January 1 of this year. 552.3 bn manats make the deposits in the national currency, 2.197 trn manats (79.9%) - in the foreign currency. The deposits of the physical persons made 1.052 trln. Manats, what is by 27% more than by January 1 The deposits of the juridical persons made 1.697 trln. Manats. The growth is 12.2%. By October 1 the volume of the monetary mass which is in turn over made 2.325 trln manats and 1.773 trln of them make cash, 552.3 bn - cashless. The volume of cash means grew by 5% in comparison with January 1, cashless means - by 4.8%.

BY OCTOBER 1 THE BANKS OF AZERBAIJAN HAVE ATTRACTED 2.749 TRLN MANATS ($559.76 MM)

BAKU.27.10.2003.MEDIA-PRESS: The total of the means and deposits attracted by the Azerbaijan banks by October 1, 2003 has made 2.749 trln manats. This is by 17.8% more than the rates by January 1 of this year. 552.3 bn manats make the deposits in the national currency, 2.197 trn manats (79.9%) - in the foreign currency.

The deposits of the physical persons made 1.052 trln. Manats, what is by 27% more than by January 1 The deposits of the juridical persons made 1.697 trln. Manats. The growth is 12.2%. By October 1 the volume of the monetary mass which is in turn over made 2.325 trln manats and 1.773 trln of them make cash, 552.3 bn - cashless. The volume of cash means grew by 5% in comparison with January 1, cashless means - by 4.8%.

3.089 TRLN MANATS ($628.9MM) OF CREDITS HAVE BEEN INVESTED TO THE ECONOMY OF AZERBAIJAN

BAKU.27.10.2003.MEDIA-PRESS: By data of the National Bank of Azerbaijan (NBA) for nine months of the current year, 3.089 trln manats ($628.9 MM) credits have been invested to the economy of Azerbaijan. As Media-Press has been informed in the press-service of the NBA, 74.6% of credits (2.3 trln. Manats or $468.33 MM) are short-termed and 25.4% (785.5 bn manats or $159.84 MM) are long-term.

The credit investments of the state banks made 1.312 trln manats ($267.5 MM) of the total credit investments, the credits of the private banks made 1.438 trln. Manats ($292.81 MM) and the non-bank credit organizations invested 339.1 bn manats ($69.02 MM).

Hereto the total credit investments to the different economic fields made by 9 months: 21.1% - trade and services; 12.07% - transport and communications development; 4.1% - energy and the natural resources development; 5.93% - the agricultural sector; 8.42% - heavy and light industry; 7.25% - the construction; 27% - the credits to the physical persons; the state management - 6.81%. 65.07% of all credits were allocated in the foreign currency.