BAKU.03.09.2003.MEDIA-PRESS: Two versions of the intergovernmental agreement were discussed on the Azerbaijan-Kazakhstan negotiations on joining of Kazakhstan to the Main Export Pipeline Baku - Tbilisi - Ceyhan (MEP BTC), completed in Baku. The President of the State Oil Company of Azerbaijan Mr. Natik Aliyev has informed journalists about this.
BAKU.03.09.2003.MEDIA-PRESS: The Azerbaijan Company REM Service has received else one contract on services of constructions situated along the route of the Main Exporting Pipeline Baku - Tbilisi - Ceyhan (MEP BTC). It will serve apartments and offices of the temporary camp near the pump stations in the Evlakh and Kyurdamir regions of Azerbaijan, be responsible for supplying personnel by food products, everyday and transport services.
BAKU.03.09.2003.MEDIA-PRESS: For eight months of 2003 the State Oil Company of Azerbaijan and the JC founded with its sharing, produced 5.953 MM tons of oil, what is by 1.6% or 94.4 thou tons more than it was planned, Media-Press has been informed in the SOCAR. 5.384 MM tons (a growth made 0,5%) of this volume made a share of the SOCAR departments; the JC produced 568.5 thou tons (a growth made 13.9%).
BAKU.03.09.2003.MEDIA-PRESS: Since the beginning of the year 3.428 bn cubic meters have been produced in Azerbaijan, what is by 2.6% more than it was planned. 2.766 bn cubic meters of them make a share of the State Oil Company of Azerbaijan, 662.1 MM cubic meters were produced by the Azerbaijan International Operating Company (AIOC). The joint enterprises have produced 72.8 MM cubic meters of gas.
BAKU.03.09.2003.MEDIA-PRESS: On August the departments of the State Oil Company of Azerbaijan drilled 11 959 meters, what made 123.7% against the plan. 11 774 meters of them made the operating drilling. The exploration drilling made 185 meters or totally 46.3% to the plan. In the total for January - August sinking by the SOCAR made 80 255 meters and this is by 1.4% higher than it was planned.
BAKU.03.09.2003.MEDIA-PRESS: Russia and Saudi Arabia have agreed to control together prices for resources in the external market. The Minister of Fuel and Energy of Russia Mr. Igor Yusufov has informed about this.
By his words, the agreement signed between the Government of Russia and Government of the Saudi Arabia on cooperation in the field of oil and gas implies interaction of two countries on key trends in this sphere. In particular, Mr. Yusufov has noted, Russia and Saudi Arabia will interract in such trends as the coordination of oil products deliveries to the external market.
BAKU.03.09.2003.MEDIA-PRESS: In two years Iran, in spite of obstacles appeared usually at signing agreements with the foreign companies, will produce 5 MM bbl of oil per a day. (The quota permitted by the OPEC for Iran makes now 3.2729 MM bbl per a day). The Chief of the Iranian Oil Company Pedec (the branch of the National Petroleum Company of the IRI) Mr. Aliakbar Aliaga.
BAKU.03.09.2003.MEDIA-PRESS: In 2004 Russia guarantees the transit of the natural gas through the territory of Ukraine in a volume of 127.8 bn cubic meters. No less 110 bn cubic meters of them would be transported to the European countries.
BAKU.03.09.2003.MEDIA-PRESS: BP has announced about positive results of drilling on the unit 16/28, situated in the central part of the Northern Sea no far from the field Endryu at a distance of 230 km to the North-East from Aberdin. "Farragon" as the opened field is called, contains 30 MM bbl of petroleum by estimates. The drilling of the well was carried out from the semisubmersible platform of the oceanic class under monitoring of Eni U.K. Limited.
BAKU.03.09.2003.MEDIA-PRESS: The delegation of energetic experts of Iran discuss the questions of extension and deepening bilateral cooperation in the electric power field with the Azerbaijan colleagues in Baku. It is headed by the Deputy Chief of The Dispatching Department of the Azerbaijan Energetic Company (Iran) Mr. Farzan; the representatives of the energetic companies "Tavanir" and "Gilani" has been included in the delegation.
BAKU.03.09.2003.MEDIA-PRESS: The State Oil Company of Azerbaijan (the SOCAR) has announced a tender on cleaning lands of the Absheron Peninsula contaminated by oil. The tender is conducted within frameworks of the Urgent Ecological Investments Project; still in 1997 the World Bank allocated the credit of $20 MM for its realization. In total this project is estimated by $24.5 MM.
BAKU.03.09.2003.MEDIA-PRESS: The State Customs of Azerbaijan and its local structures has executed a forecast on collection of taxes and duties for January - August 2003 by 102.8%.
BAKU.03.09.2003.MEDIA-PRESS: The State Property Privatization Department of the Ministry of the Economic Development of Azerbaijan has announced the investment competition on sale of the stocks of the OJC "Baku Fridges "Chinar".
BAKU.03.09.2003.MEDIA-PRESS: The Ministry of the Transport of Azerbaijan has announced a tender on restoration and rehabilitation of 73 km car road of Shamkir-Gazakh (on frontier with Georgia) with a length of 73 km.
In accordance with conditions of the tender, the realization of the project should be completed during 18 months since approval of the contractor.
BAKU.03.09.2003.MEDIA-PRESS: The common group of experts GUUAM - USA on working out the strategy and plan on the realization of the project of trade and transportation in GUUAM assistance , which is a constituent part of the framework program GUUAM - USA. The Chief of the Press-Service of the Ministry of Foreign Affairs of Ukraine Mr. Markiyan Lubkivski has told about this on the briefing.
BAKU.03.09.2003.MEDIA-PRESS: The main insurrectionary Kurdish group - The Kurdish Working Party (PKK/KADEK) has announced about breaking the truce with Turkey in monolateral order; the truce was announced in 1999 after the arrest of its leader, Abdulla Ojalan.
TWO VERSIONS OF INTERGOVERNMENTAL AGREEMENT WERE DISCUSSED ON NEGOTIATIONS ON JOINING OF KAZAKHSTAN TO THE PIPELINE BTC
He has emphasized that during the next round of negotiations between the SOCAr and "KazMunayGaz" the progress has been achieved. "The Kazakhstan side realized a significance of the intergovernmental agreement. If earlier they regarded sufficient the application on joining to BTC, today they had prepared their version of agreement. Of course, our version is more receivable, as it is based on those intergovernmental agreements, which serve a base for construction of BTC",- the Chief of the State Oil Company and noted at the same time hat in total main moments of both versions are similar and optimal version will be worked out on a base of them.
Mr. N.Aliyev also informed that on negotiations questions of correspondence of the Kazakhstan laws to requirements of the intergovernmental agreement for ensuring favourable conditions of pumping of the Kazakhhstan oil by BTC. Besides of this, a question of admittance of the companies-exporters of the Kazakhstan oil to the relevant infrastructure of both countries was a theme of negotiations.
"We try to make the route of BTC prior for the Kazakhstan oil producers. There are questions on taxation, obligations and responsibilities of the sides and procedure of entering into force of intergovernmental agreement. For example, in Azerbaijan the intergovernmental agreements are ratified by the Parliament and in Kazakhstan the Government approves agreements of such kind. And our investors by BTC want approval of the agreement in the parliament for stability guarantees", - the President of the SOCAR has said.
By the words of Mr. N. Aliyev, a wide circle of experts of the SOCAR, "KazMunayGaz", pipeline consortium BTC Co (operator on construction and operation of BTC), and companies ENI, TotalFinaElf, ConocoPhilips and Inpex (all four companies are members of the projects on development of projects of oil fields in Kazakhstan) was attracted to the Baku round of negotiations, Further it is supposed to create the limited working group, which would intensify the negotiation process. "This group may meet already on September - October, 2003. The next round on the highest level is expected by the end of October. By the end of the year we suppose to complete preparation of intergovernmental agreement and give it for consideration of both countries with the next signing", - Mr. N. Aliyev has said.
The preparation of the transit agreement between the country having the transit territory and investors will be the next stage of negotiations, The President of the SOCAR has noted that preparation of this document will be significantly simplified by that it will be based on conditions of the intergovernmental agreement. "Not only four companies-shareholders of BTC Co sharing in the development of oil resources of Kazakhstan can be attracted to the transit agreement, but others. Just they will invest means to creation of the infrastructure (new terminals, ports, etc.) for the route Aktau - Baku, by which the Kazakhstan oil will be pumped to BTC. In particular, the new terminal is necessary in Azerbaijan for pumping of Kazakhstan oil in BTC", - Mr. Aliyev has said. He has noted, that since this the commercial agreements between BTC Co and the Kazakhstan oil exporters will be concluded.
The Chief of the SOCAR has informed that by the statements of the Kazakhstan side, the oil pumping from the eastern Caspian coast by BTC may start in 2007 - 2010. "In any case four Kazakhstan shareholders BTC Co have 15% in the pipeline project. This means that at the maximum capacity of BTC in 1MM bbl per a day they would be able to pump 150 thou bbl of own oil. While they would not deliver their oil to the pipeline, other shareholders will use these volumes", - Mr. N. Aliyev said.
THE AZERBAIJAN COMPANY REM SERVICE HAS RECEIVED THE CONTRACT ON SERVICES OF CONSTRUCTIONS ALONG THE ROUTE OF THE PIPELINE BAKU - TBILISI - CEYHAN
The contract was concluded with the French-American Alliance Spie Capag/Petrofac International - the contractor of the construction of the Georgian piece of the pipeline and pump stations for BTC on the territory of Azerbaijan and Georgia. Eight pump stations will be built along all length of the MEP. Four of them will be constructed in Turkey and by two ones in Azerbaijan and Turkey.
We shall remind that else one Azerbaijan Company - "Azerkorpu" has received the contract from the Spie Capaq/Petrofac for construction of the temporary objects, preparation of squares for construction and conduction of the building works at all length of the Georgian piece of the Main Export Pipeline Baku - Tbilisi - Ceyhan. "Azerkorpu" also will prepare the construction platforms for pump stations in Azerbaijan and Georgia.
FOR EIGHT MONTHS OF 2003 5.953 MM TONS OF OIL HAVE BEEN PRODUCED
On August the State Oil Company of Azerbaijan produced 757.1 thou tons of oil, what is by 9.8 thou tons or 1.3% more than it was planned, The oil and gas production managements have produced 683.8 thou tons and 73.3 thou tons were produced by the joint companies.
In accordance with predictions, in 2003 the oil production in Azerbaijan is expected on a level of 15.25 MM tons, 8.8 MM tons of oil will be received from the fields of the SOCAR and the Azerbaijan International Operating Company (AIOC) will produce 6.45 MM tons.
SINCE THE BEGINNING OF THE YEAR GAS PRODUCTION IN AZERBAIJAN MADE 2.988 BN CUBIC METERS
By the forecasts, in this year production of the "blue fuel" will make 5.04 bn cubic meters, the Azerbaijan International Operating Company (AIOC) will produce 890 of them and the SOCAR - 4.15 bn cubic meters.
It would be necessary up to 10 bn cubic meters for satisfaction of requirements of the republic. In the past year Azerbaijan purchased 4 bn cubic meters of the "blue fuel" from the international group of the companies "Itera". This year, in accordance with the agreement between the JC "Azerigaz" and "Itera" the import will be increased else by 1.5 bn cubic meters. The republic will receive the subsidiary volumes of gas also since within the frameworks of the project of extension of the Sangachal oil terminal the gas drying installation will be installed. Today all oil delivered to the terminal is separated from water and gas. Received gas is liquated. The construction of new installation would not allow liquating gas, but delivering it to the State Oil Company of Azerbaijan, which in its turn will deliver it to consumers. Gas will be burned in flames only in emergencies.
For realization of this idea the SOCAR also plans to build special gas receiving installation and the pipeline up to the Sangachal gas distribution point.
ON AUGUST THE DRILLING WORKERS OF THE SOCAR EXCEEDED THE PLAN ON SINKING BY 23.7%
TWO LARGEST PETROLEUM EXPORTERS - RUSSIA AND SAUDI ARABIA AGREED TO CONTROL TOGETHER OIL PRICES IN THE WORLD MARKET
Moreover, this agreement implies the cooperatioon of the Russian and Saudian companies in realization of the join oil chemical projects both in Saudi Arabia and in Russian. It also implies the attraction of the Saudian capital to the Russian economy.
In accordance with the agreement, the RF and the Saudi Arabia have agreed to create joint working group on cooperation in the field of oil and gas. Mr. Igor Yusufov has noted that such working group already works actively within frameworks of intergovernmental commission (IC) and it will receive a new status after signing the agreement.
Mr. Igor Yusufov noted that now the "gas initiative" of the Saudi Arabia is one of the key themes of mutual interest. By his words, this initiative provides the cooperate development of the gas fields, geological exploration of the fields, using gas for water freshening, construction of the gas pipelines, electric power stations, working on gas, as well the objects of oil and chemistry industry. The total cost of these projects is estimated by $20 - 27 bn, Mr. Yusufov has showed.
The Minister has informed also that the tender departments of the Saudi Arabia already began to receive applications and expressed the hope that "the Russian companies will get the fitting place in the realization of these projects".
The agreement on cooperation in the field of oil and gas between Russian and Saudi Arabia implies the exchanging by information and analytical materials about the world petroleum market state, strenghening the interraction on bilateral base in purposes of providing world petroleum market stability. Moreover, the sides agreed to simplify procedures of foundation of joint companies for realization of the project on oil and gas fields, as well to conduct joint scientific researches directed to improvement and applying technologies in the exploration, development, production, processing, storage, transportation and consumption of oil, its products and natural gas, Besides of this, the sides agreed in accordance with the agreement to organize the joint group of cooperation on oil and gas, which would include officials of the Ministry of Energy of Russia and Ministry of Oil and Mineral Resources of Kingdom of the Saudi Arabia.
IN TWO YEARS IRAN INTENDS TO PRODUCE 5 MM BBL OF OIL PER A DAY
Mr. A. Aliaga, who manages negotiations with foreign companies, has not explained the situation with the agreement on the development of the largest field Azadegan by the Japanese Consortium. However, he has told in return that during the next year the agreement on development of other field - Akhvaz, which is a part of other working field Bangestan will be concluded. At the present time 270 thou 270 thou bbl of petroleum per a day are produced on Bangestan. BP and the French Total pretend for sharing in the development of Akhvaz.
SINCE THE BEGINNING OF THE YEAR "NEFTEGAZ" OF UKRAINE HAS PAID OUT OVER $1BN TO TURKMENISTAN FOR RECEIVED GAS
As it has been informed earlier, on July the President of Turkmenistan Mr. Saparmurat Niyazov and the Chief of the NJC Mr. Yuri Boyko has signed the contract on deliveries of 36 bn cubic meters of the natural gas in 2004 by a total of $44 per 1 thou cubic meters within frameworks of five-year operating now agreement signed for a term of 2002 - 2006. These conditions are analogous to ones, being into force now.
Just then Turkmentbashi has told about the agreement with the President of Ukraine Mr. Leonid Kuchma to discuss a possibility of signing the long-term agreement on deliveries of the Turkmen gas to Ukraine for 2007 - 2032 during the summit meeting of CIS on September in Yalta.
As it became known, the delegation of the NJC lead by Mr. Yuri Boyko will go to Ashgabad for the negotiations on signing the long-term contract on deliveries of the natural gas after 2007.
IN 2004 RUSSIA GUARANTEES TRANSIT OF THE NATURAL GAS THROUGH TERRITORY OF UKRAINE IN A VOLUME OF 127.8 BN CUBIC METERS
These parameteres are included in the Russian-Ukrainian intergovernmental protocol for 2004 attached to the agreement between governments of both countries on subsidiary measures on providing the transit of the Russian natural gas on the territory of Ukraine, signed by the Vice Premiers of Governments of both countries Mr. Victor Khristenko and Vitaly Gayduk.
Tariff for transit of the Russian gas by the territory of Ukraine for 2004 will be established in a volume of $1.937 per a thousand cubic meters at a distance of 100 km. The deliveries will be carried out through the OJC "Gazprom". A price of gas delivered in payments for transit services, has been established in a volume of $50 per 1 thou cubic meters.
The Russian side guarantees the accounting for rendered transit services by "Gazprom" in a way of delivering the natural gas in a volume of 24 bn cubic meters to the National JC "Neftegaz Ukraini" for ensuring the gas balance of Ukraine. The rest total will be paid out by monetary means.
The Russian side also guarantees the transit the Central Asian gas in the future year for gas supplying of the Ukrainian consumers in a volume of 36 bn cubic meters. The rate of payments for the transit of this gas also will make $1.9375 for each thousand kilometers per 100 km of the distance. In a case if the volume of the Central Asian gas will be reduced up to 34 bn cubic meters, a volume of gas delivered by "Gazprom" will be increased up to 26 bn cubic meters.
At the export of the natural gas from the territory of Ukraine the Ukrainian side will establish the export duty in a total of $100 per one thousand cubic meters.
The signed protocol operates up to January 1, 2005. The side also agreed to sign the analogous protocol for 2005 up to July 1 2004.
TO ALL APPEARANCE THE OIL REPUTATION OF THE NORTH SEA IS RESTORED: BP DISCOVERED THE NEW FIELD ON THE BRITISH SHELF
As the Minister of Energy Mr. Steven Teams has declared in connection with discovery of Farragon, though this field is not large by world estimates, it opens new perspectives for financing further oil and gas exploration on the English shelf of the Northern Sea.
The Consortium including BP, Eni and EnCana, develop Farragon, Dow Jones informs from London.
The discovery of the British oil experts in the next turn disproved confirmations of some specialists about "close" completion of oil and gas resources of the Northern Sea. We shall remind that on August Statoil also has declared about discovery of new oil field on the continental shelf of its country. As the oil has not been found in Norway during over ten years since discovery of the field Norn in 1991, the new field called Ellida, may renew a glory of the Norwegian continental shelf and attract investments to its further development.
It was declared in the press-center of just Statoil that the second exploration well will be completed in Ellida in the beginning of September. It will be impossible to tell about available industrial petroleum supplies up to this moment.
THE NEXT ROUND OF THE AZERBAIJAN-IRANIAN NEGOTIATIONS ON COOPERATION AND ENERGETIC PROBLEMS IS HELD IN BAKU
As the JC "Azenerji" has informed Media-Press, programs of the technical operation of the Trans-Azerbaijan EPTL Astara (Azerbaijan) - Astara (Iran) and intersystem EPTL Imishli-Parsabad, also connecting two countries, including the problem of the construction of its second turn as well as works on the project of EPTL Julfa (Azerbaijan) - Julfa (Iran) will be considered during the negotiations.
THE STATE OIL COMPANY OF AZERBAIJAN HAS ANNOUNCED THE TENDER ON CLEANING LANDS CONTAMINATED BY OIL
As the Agency "Interfax - Azerbaijan" has been informed in the SOCAR, cleaning the lands of Absheron contaminated by oil will be conducted as a pilot project included in the mentioned program of the WB. It provides cleaning 10 hectares on the field "Buzovna-Mashtagi" and is evaluated by $5.1 MM. All interested companies are allowed to participated in the tender. The pretenders should to make available their suggestions to the SOCAR up to October 10, 2003.
The Urgent Ecological Investments Project consists of four components: building of the fishery plant in Neftechala; cleaning the territory of the Sumgayit Surface Active Substances Plant from mercury contaminations; pilot cleaning the lands of the Absheron Peninsula contaminated by oil; the ecological management and dangerous wastes managing.
FOR 8 MONTHS AZERBAIJAN CUSTOMS HAS EXCEEDED THE PLAN ON ASSIGNMENTS TO THE STATE BUDGET
In accordance with data of the press-service of the SCD, custom employees have transferred 634.4 bn manats to the state budget. The forecast has been exceeded by more than 17 bn manats or by 81.4 bn manats in comparison with the analogous period of the past year.
THE INVESTMENT COMPETITION ON SALE OF STOCK OF THE OJC "BAKU FRIDGERS" HAS BEEN ANNOUNCED
The pretenders should suggest the investment program, which would provide enlarging the issue of everyday and industrial fridges and other kinds of production, introduction of new technologies, solving the social problems of the workers of the enterprise.
A winner of the competition should sign the purchase-sale contact during a month since approval of the tender results, assign 5% of the total investments volume to the accounts of the OJC and no less 1.4 bn manats to the state budget. Besides of this, during 60 days since the contract signing instant, it should redeem debts for salaries and the relevant debts. Also it is necessary to present privatization cheques in amount no less 120 thou, and if a foreign investor becomes a winner - the analogous volume of the privatization option.
At the present time the OJC "Baku Fridges" has debt obligations in a volume of almost 2 bn manats, including debts for salaries - 59.103 MM manats, debts for received materials and services - 467.939 MM manats. With this the debtor debts of the enterpise make above 1.087 bn manats. The enterprise was founded in 1959.
THE MINISTRY OF THE TRANSPORT OF AZERBAIJAN HAS ANNOUNCE A TENDER ON RESTORATION OF THE CAR ROAD SHAMKIR - GAZAKH
The tender is the constituent part of the project of the construction of the car road Gyanja - the frontier of Georgia, which will be carry out in account of favourable credit of the International Development Association in a total of $40 MM.
The first stage of the project provides the restoration of the car road Gyanja - Shamkir with a length of 30 km. The Turkish company Turan&Hazinadaroglu is the contractor of this company.
THE EXPERTS OF GUUAM AND THE USA DISCUSS THE TRADE ASSISTANCE STRATEGY IN KIEV
By his words, representatives of the customs and frontier services of Georgia, Uzbekistan, Ukraine, Azerbaijan, Moldova as well the American experts will join in the group.
THE KURDISH SEPARATISTS BREAK THE TRUCE IN TURKEY
It is said in the statement of PKK/KADEK that this group has reevaluated the situation and announces breaking truce since September 1. It may be renewed "only on the bilateral base", the document emphasizes. The authors of the statement emphasize that "now the Turkish Government should decide, what does it want either peace, or war", "Interfax" reports.
By information of BBC, the Kurkish separatists have explained their decision by dissatisfaction by that the Government of Turkey still has not secured cultural and political rights of the Kurdish minority.
