PRIME MINISTER OF AZERBAIJAN MR. ILHAM ALIYEV HAS LEFT TO TURKEY WITH THE WORKING VISIT
During the visit Mr. I. Aliyev will meet the President of Turkey Mr. Akhmet Nejet Sezer and the Premier of this country Mr. Rejep Tayip Erdogan and discuss problems of mutual interest.
In his trip the Premier is escorted by the Vice-Premier Mr. Abid Sharifov, the Minister of the Economic Development Mr. Farkhad Aliyev, the President of the State Oil Company of Azerbaijan Mr. Natig Aliyev .
It is expected that I. Aliyev will return to Baku late in the evening on September 8.
MR. VAGIT ALEKPEROV: THIS YEAR "LUKOIL" WILL NOT CONSIDER A POSSIBILITY OF ITS SHARE IN "SHAKH-DENIZ" PROJECT SALE
He disproved affirmation as if LUKoil had chosen already the company-consultant, which are engaged in searches of the company, which would be ready to purchase the share of "LUKoil" in "Shakh -Deniz" project. At the same time Mr. B. Alekperov has noted that further the company will return to the project repeatedly.
We shall remind that very recently the Chief of the Baku Representation of LUKoil Overseas Mr. Rym Bagmanov also disproved this information and informed that at the beginning of September it is planned to held the next meeting of the Managing Department on "Shakh-Deniz".
We shall remind that a version that "LUKoil" may sell its share in "Shakh-Deniz" project appeared in the analytical review of the Investment Company "ATON". The analysts of "ATON" believe that "Shakh-Deniz" is registered as the first one in the sale list of "LUKoil".
"LUKoil has sold its 10% share in the project of the development of the Azerbaijan offshore fields "Azeri-Chiraq-Gunesli" (ACG) to the Japanese Company Inpex for $1.35 billion. The estimating stocks and supplies of "Shakh-Deniz" field make 1 trillion cubic meters of gas. The following companies including BP (25.5%), the Norwegian Statoil (25.5%), SOCAR (10%), the French-Belgium TotalFinalElf - 10%, the Russian "LUKARKO" - 10%, the Iranian OIEC - 10% and Turkish TPAO - 9% are the shareholders of the project. THE NEXT SITTING OF THE SPECIAL WORKING GROUP ON THE CASPIAN SEA LEGAL STATUS HAS OPENED IN ASHGABAD BAKU.08.09.2003.MEDIA-PRESS: On 08 September in the Turkmen capital two days special sitting of the working group (SWG) with participation of the Deputy Foreign Ministers of five littoral states on working out of the Convention on the Legal Status of the Caspian Sea was opened. Its participants will continue discussion of the Project of Convention particularly its part related to the environmental protection, meteorology and biological resources. A separate five-sided agreement is prepared on them. While disagreements remain on principles sea bottom dividing as well as expediency of allotting the water surface control zone for each state. "The Convention on the legal status of the Caspian Sea can not be developed earlier than the second summit meeting of five Caspian states, as there is a number of problems which overcome the frameworks of experts' competencies. The Special Envoy of the President of the RF on the Caspian Sea, the Deputy Foreign Minister of Russia Mr. Victor Kalyuzni has declared this in Ashgabad. In particular, he called delimitation and demilitarization of the Caspian Sea as well as traveling of ships by inner waterways of Russia among such issues.
It is also planned to determine a date of meeting of the Foreign Ministers. It is not excepted that they will meet at the end of the current year - beginning of the next one and be engaged in preparation for the summit meeting of "the Caspian five".
The previous tenth sitting of the SWG with the participation of the Deputy Foreign Ministers of the Caspian states - Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan was held on July 22 - 24 in Moscow. $10 BN PROVED A NECESSITY OF AGREEING TO POSTPONE THE DEVELOPMENT OF THE FIELD KASHAGAN TO ASTANA BAKU.08.09.2003.MEDIA-PRESS: The terms of the development of the largest Kashagan field in the northern part of the Caspian Sea have been postponed for two years as minimum. The Managing Director of the Kazakhstan oil and gas company "KazMunayGaz" Mr. Kairgeldi Kabildin has declared. By his words, the official Astana has agreed on postponing the terms of start of the industrial production of "early oil" up to 2007 after negotiations with the operator of the project - the Italian ENI SpA continued for several months.
We shall remind not long ago the Government of Kazakhstan categorically opposed to delay the begining of development of Kashagan and even threatened by finance "troubles" for the consortium, which developed this field. In their turn the foreign companies joining in the consortium proved that it is impossible to start the development of Kashagan earlier than at the end of 2007 for "technical reasons".
However, money can solve every problem. The Consortium headed by ENI announced on its intention to increase the investments for Kashagan development up to $10 billion, The Wall Street Journal reports.
As this authoritative issue shows, the group of companies including ENI as well as SpA, ExxonMobil Corp., Royal Dutch/Shell Group, Total SA, ConocoPhillips and Japan Inpex, plans to produce 450 thousand bbl/day in the first phase of the project development. This showing in more than four times exceeds the initially planned production volume: 100 thousand bbl per a day by the end of 2005 - beginning of 2006.
The new scheme of the development will make possible the production of the first oil only by the end of 2007, nevertheless the Government of Kazakhstan will get the compensation for missed profit. The officials of ENI already conduct negotiations with the Kazakhstan Government on this problem.
At the same time the Agency Reuters has informed with a reference to sources in the Kazakhstan Government that the country will agree principally with the necessity of postponing. Kashagan field is the most significant discovery for the last 40 years. The project of the development of the field provides increase of the production volume up to 1.2-MM bbl per a day. It will be less than rates of production on Gavar field in the Saudi Arabia. It is the largest field on the Middle East.
The wide scale oil production in Kashagan will take place simultaneously with the production increase on the other Kazakhstan field - Tengiz, which is developed by Chevron Texaco Corp. As Russia, Kazakhstan and Azerbaijan are not members of the OPEC, this will show an ability of the oil cartel to control prices for the hydrocarbon raw materials, the Wall Street Journal resumes. IRAN ACTIVELY INVITES THE FOREIGN COMPANIES TO DEVELOP ITS OIL FIELDS BAKU.08.09.2003.MEDIA-PRESS: The Ministry of Petroleum of Iran conducts negotiations with the foreign investors on development of three large oil fields - Azadegan, Bangestan and Chashmekhosh.
The largest field Azadegan possesses pursuant to estimations 30 billion bbl of oil. During two years Japan had the favorable right to conduct the negotiations on development of this field, however now this issue also is discussed with companies from other countries.
Negotiations on development of Chashmekhosh field are led with the Spanish company "Sapsa". This company together with the Austrian Company OMV already operates on the mentioned field. The negotiations on development of Bangestan field are conducted with the French Total S. A. and BP. Since the victory of the Islamic Revolution in Iran in 1979, BP had not worked in Iran. FOR EIGHT MONTHS 13.98 BN KVT/HOURS OF THE ELECTRIC POWER HAVE BEEN PRODUCED IN AZERBAIJAN BAKU.08.2003.MEDIA-PRESS: For seven months 13.98 billion kilowatt/hours of the electric power were produced in Azerbaijan. As Media-Press has been informed in "Azerenergy", a share of the SREPS in this volume made 11.980 billion kilowatt/hours, and a share of HEPS - 1.890 kilowatt/hours.
In August the enterprises of "Azerenergy" produced over 1.4 billion kilowatt/hour of electric power.
The share of thermal power stations made 1.363 kilowatt/hours, and of electric power stations - 1.890 billion kilowatt/hours. In August the energy output compared to the analogous period of the past year increased by 182.8 thousand kilowatt/hours. ELECTRIC POWER STATIONS IN AZEBAIJAN HAVE BECOME MORE ECONOMIC BAKU.08.09.2003.MEDIA-PRESS: The thermal electric power stations of Azerbaijan operating on gas and mazut have become more economic. So in accordance with information of the press-service of the JC "Azerenegy", in August 381.94 gram of conditional fuel were used to produce 1 kilowatt/hour of the electric power energy and this is by 32.45 grams less than for the analogous period of the past year. By means of this 41 887 tons of conditional fuel were saved last month. Totally, since the beginning of the year to produce 1 kilowatt/hour of the electric energy the conditional fuel was spent by 26.6 grams less than in the analogous period of the past year. As a result totally 304 thousand tons of the conditional fuel were saved. THE MINISTRY OF THE ECONOMIC DEVELOPMENT OF AZERBAIJAN HAS CHOSEN TWO MORE BANKS-AGENTS FOR BUSINESSMEN’ CREDITING BAKU.08.09.2003.MEDIA-PRESS: The next tender on determination of two more banks, to allocate the favorable credits to businessmen from the means of the Fund was conducted in accordance with the Edict of the President of Azerbaijan "On using means of the National Business Assistance Fund", dated August 27, 2002.
As Media-Press has been informed in the Ministry of the Economic Development, the competitive commission has announced that the commercial Unibank and Joint stock commercial bank AZALbank are the winners of the tender.
Thus, the businessmen, which need in credits would be able to use services of following banks: "Republic", "Tekhnicbank", "Mugan", "Ilkbank", "Parabank","Turan", "Atabank", "Azeridemiryolbank", "Dekabank", "Amrakhbank", "Rabitabank", "Mostbank - Azerbaijan", "Unibank" and "Azalbank".
These banks have their branches in Nakhchicvan, Gyanja, Sumgajiut, Sheki, Lyankaran, Barda, Yevlakh, Beylagan, Imishli, Zagatali, Guba and Divichi. As it was noted in the Ministry of the Economic Development, the choice of these banks was connected in a large degree with such fact that they have their branches in the regions of the country, what would promote the further development of business here. We shall note that it is supposed to transfer around AzM 57 billion to the National Business Assistance Fund. For the present totally AzM 23 billion have been got and AzM 17 billion have been spent (totally 73.9%). THE MINISTRY OF ECOLOGY AND NATURAL RESOURCES OF AZERBAIJAN CLAIMS ARMENIA IN THE ECOLOGICAL TERRORISM BAKU.08.09.2003.MEDIA-PRESS: Armenia intensively contaminates Agstafachay (Agstafa River) Reservoir. Media-Press has got this information in the Ministry of Ecology and Natural Resources of Azerbaijan.
Rivers running by the territory of Armenia fill up the Reservoir. However, during last few years the enterprises located on the banks of these rivers pour out their industrial wastes without their preliminary cleaning. As a result, some chemical substances content rates have been exceeded in many times, especially zinc - in 255 times, copper - in 9 times, and nickel - in 4.6 times. During the ecological and toxicological researches conducted by the Azerbaijan experts, alive organisms placed in this medium died during 24 hours. Moreover water of the Agstafachay Rezervoir is used not only for irrigation. The inhabitants of the Gazakh Region also use it for drinking.
The Ministry of Ecology of Azerbaijan distributed the press release in connection with this. It is emphasized in it that Armenia is engaged in the ecological terrorism and genocide against Azerbaijan and this shows real purposes of the Neighbor State. AZERBAIJAN WANTS THE FAIR DISTRIBUTION OF QUOTAS FOR STURGEON FISHING AND BLACK CAVIAR PRODUCTION BAKU.08.09.2003.MEDIA-PRESS: "Azerbaijan is satisfied with the present common volume of quotas for sturgeons fishing, established by the Commission on Biological Resources of the Caspian Sea. And we do not insist onits quantity increase. We just are for the fair distribution of this quota. So it is possible to speak only about the percentage rate growth of the Azerbaijan's quota compared to other Caspian states", - the Ministry of Ecology and Natural Resources of Azerbaijan Mr. Husein Bagirov has said.
He has noted that in September new fish farm with capacity up to 15 MM saplings per a day would be turned into operation in Azerbaijan. Taking this into account, Azerbaijan would be able theoretically to ask on its quota increasing, the Minister has continued. If in 2002 the quota of Azerbaijan for sturgeon fishing made 92 tons, and the black caviar export quota made 7.7 tons, then in the current year these showings make correspondingly - 127 tons and 9.1 tons. The Kazakhstan's quota - 216 tons and 23.18 tons, the Russian ones - 429 and 30.3, the Turkmenistan - 56.25 ton and 5.85 tons of caviar, the Iranian - 676.4 tons and 78.8 tons of caviar. Furthermore, the quotas of the Caspian countries, except Azerbaijan were reduced by 8 - 10%.
For the last three years a population of the sturgeons in the Caspian Sea has grown by 5 MM and reached 11.6 MM. The Secretariat of the Convention on the International Trade by Under Extinct Species, which is one of the bodies of the Ecological UN Program, has published this information. As the Vice-General Secretary of Convention Mr. Jim Armstrong has noted, the growth of the population of the sturgeons has been caused by that "the Caspian states take serious measures on poaching prevention". In connection with this the CITES decided to increase the quotas for the black caviar, produced by the regional countries: in 2003 they will be able to export a cumulative total of 146.8 tons of caviar. In the past year this showing made 142.2 tons. In June 2001 in accordance with so called Paris Agreement the six-month moratorium for black caviar export from Azerbaijan, Kazakhstan, Turkmenistan and Russia. During it these countries conducted scientific researches of the sturgeon supplies and worked out a cooperative plan on fishing regulating and fish saving.
A moratorium for the caviar export from the fifth Caspian countries was not established, however it joined of its own free will to the effort of the neighbors. The new quotas accepted by the CITES are based on the information, provided by the Caspian countries as well as the results of the international experts activities, which affirmed that the regional states demonstrate their readiness for regulating sturgeon fishing and refuse of significant profits from export. During the working out of the new quotas the special attention was paid to white sturgeon, which is a source of the most valuable black caviar. As the experts of the CITES have noted, at the present the beluga supplies are restored in the Caspian Sea. This takes place owing to that the most part of caught fish is not used for caviar extraction and its sale, but delivered to nurseries-incubators. THE MINISTRY OF ECOLOGY OF AZERBAIJAN INITIATES THE EXTENSION OF FOREST-PLANTATIONS BAKU.08.09.2003.MEDIA-PRESS: The Ministry of the Ecology and Natural Resources of Azerbaijan intends to initiate the growing of the quick-growing kinds of trees to satisfy the industrial demands of the country and needs of the population in the wood.
As the Minister of Ecology and Natural Resources Mr. Huseyn Bagirov has informed, his organization is ready to allot 500 hectares from the forest fund of the country to the interested persons for cultivation of quick-growing kinds of trees on these lands. "We will also allot them up to 1MM saplings of such kinds. It is expected that they would reach a height of 7-8 meters during two years. Moreover, we are ready to give 20% of wood more to those, who will grow forests. It is possible to get 200 - 400 cubic meters of qualitative wood from one hectare of such area", - the Minister has noted.
By his opinion, this method will allow to reduce illegal felling. Only in 2003 26 thousand cubic meters of wood illegally cut down were arrested, pennies established for this totally made AzM 600 MM. "However these measures will not return ruined trees, which sometimes are of valuable and rare kinds", - Mr. H. Bagirov has emphasized.
By the Minister’s words, mainly illegal actions and cuttings are explained by demands of people in firewood and construction wood. "During a year we produce 60 - 70 thousand cubic meters of firewood and industrial wood from old and ill trees, however it is a little part and isn’t enough to meet the population needs and demands. Application of the method offered by us would allow increasing of industrial wood production volumes during five years up to 80 - 100 thousand cubic meters per a year. In addition, we would have definite volumes of woods got as a result of sanitary felling. We should be able to provide cheap, qualitative wood produced in a legal way for the people and prevent destroying the forests", - the Ministry has declared.
We shall note that since 2002 the Ministry of Ecology and Natural Resources of Azerbaijan conducts and actively work on restoration of the forestry of the country. Last year new forest-plantations were placed within an area of 3.1 hectares; forest-restoration works were done within an area of 5 thousand hectares. Totally, 12-MM saplings were grown in 2002. It is planned to increase this figure up to 25 - 26 MM in 2003.
In February 2003 the National Program of Forest Extension was accepted in Azerbaijan. It provides planting of forests within an area of 45 thousand hectares and forest restoration within an area of 200 thousand hectares up to 2008.
The forest area occupies 11% of the country's territory. A total area of the forest fund makes 1.213 MM hectares (including fields, meadows and areas around forests); the whole territory of forests makes about 950 thousand hectares. 107 kinds of trees and 328 kinds of bushes grow in the forests. Expenses of the budget of 2003 for the forestry make AzM 9.581 billion, and this exceeds the showings of 2002 by AzM 961 MM.
