Media Press

ALREADY $2 BN WERE SPENT FOR REALIZATION OF THE PROJECT "AZERI"

BAKU.10.09.2003.MEDIA-PRESS: Expenses for realization of the project "Azeri" ("Phase-1" and "Phase-2" of the full-scale development of the offshore fields "Azeri-Chiraq-Guneshli") for today made $2 bn. As the Vice-President of bp - Azerbaijan Mr. Nil Show has informed, this year expenses within frameworks of the project will make $1.7 bn; the same total is planned for the next year. In 2003 daily expenses within frameworks of the project "Azeri" make $6 MM. By the words of Mr. Nil Show, the building works within frameworks of "Phase-1" of the project "Azeri" go strictly in accordance with a schedule. 70% of the planned works on the construction of the production platform, which will be installed on the "Central Azeri", where dwelling unit had been already mounted; the main part of the drilling module has been received. 35% of the works were done on the construction of the gas compressor and water-pressure platform. In the fourth quarter of the current year the base unit for the platform "Central Azeri" will be installed in the sea. Orders on these works are executed in Canada, Holland, Sweden, Turkey, Italy, Croatia, France, the Great Britain, Kuwait and Dubai and of course, in Azerbaijan. As earlier Media-Press has been informed, a drilling of 12 advanced wells had been completed. All they were temporarily preserved. Now sinking of advanced wells on the "West Azeri" is conducted. A drilling is conducted from the semi-submersible drilling rig "Dede Gorgud".

ALREADY $2 BN WERE SPENT FOR REALIZATION OF THE PROJECT "AZERI"

BAKU.10.09.2003.MEDIA-PRESS: By the end of the year within the frameworks "Azeri" ("Phase-1" and "Phase-2" of the full-scale development of the offshore fields "Azeri-Chiraq-Guneshli") the sinking of 30 inch underwater oil pipeline which will be laid from producing offshore platforms up to the Sangachal oil terminal will be completed. A capacity of the oil pipeline will make 500 thou bbl per a day. The director of the project on the pipelines sinking Mr. Tony Boil has informed about this.
By his words, by today 30 km of pipes have been laid already; in average 1.5 km of the underwater route is laid daily. The works are conducted from the pipe-layer ship "Israfil Guseynov". New cranes and mechanisms of "pulling" allowing work with pipes of larger diameters had been installed on it. Moreover, new cranes may work in all weather conditions. Also modernization of two subsidiary ships "Neftegaz-58" and "Tebriz Khalili" has been made.
After completion of the construction a sinking of 28-inch gas pipeline and then the second 30-inch oil pipeline will start on the same route. A length of each one will make 185 km.
The joint Azerbaijan-German Company Eupec/Azpetrol produced the pipes for underwater main lines at the new plant buit in Baku for 10 months. Here steel pipes are covered by a special isolation and concreted. In accordance with the contract, the plant for three years will carry out orders of bp on the projects "Azeri" and "Shakh-Deniz". As Mr. T. Boil has concretized, within the frameworks of the project the construction of underwater pipelines with a length of 700 km as well as a sinking o 250 km of the relevant cable lines would be necessary. The contract on the sinking of underwater pipelines within frameworks of the project "Azeri" was concluded with the American Company McDermott.

A NEW GAS PIPELINE WILL BE BUILT FROM THE SANGACHAL TERMINAL UP TO THE DISTRIBUTION NETWORK OF THE JC "AZERIGAZ"

BAKU.10.09.2003.MEDIA-PRESS: For deliveries of casing-head gas produced within frameworks of the full-scale development of the fields "Azeri-Chiraq-Guneshli" (ACG) to Azerbaijan, a new gas pipeline will be constructed. It will be laid from the Sangachal terminal up to the distribution network of "Azerigas". The agreement on it has been achieve already between bp (an operator of ACG), the State Oil Company of Azerbaijan and the JC "Azerigaz". The Director of the Project on extention of the Sangachal terminal Mr. Yakobus Newvenkhauze has informed journalists about this.
By his words, a length of the pipeline will make 3.5 km, a capacity 700 MM cubic feet per a day. Its sinking will be carried out within frameworks of the extention of the Sangachal terminal, but in account of own funds of the SOCAR. All required materials have been ordered already. The construction of the pipeline will start in the first quarter of 2004.
Today all oil delivered to the Sangachal terminal is separated from water and gas. The received gas is burned. The construction of the new installation on gas drying will not allow burning the gas, but delivering it to the State Oil Company of Azerbaijan, which in its turn, will deliver it to consumers. The gas will be burned in flames only in emergency cases.
For satisfaction of the demands, the Republic requires up to 10 bn cubic meters of gas per a year. Today gas produced in Azerbaijan provides only 50% of the country's demands. By forecasts, gas production in Azerbaijan will make 5.04 bn cubic meters, and the Azerbaijan International Company will deliver 890 MM cubic meters of them to the country free of charge.

THE WORKS ON EXTENSION OF THE SANGACHAL TERMINAL HAVE BEEN CARRIED OUT BY 60%

BAKU.10.09.2003.MEDIA-PRESS: The works on extension of the Sangachal terminal within frameworks of the project of the full-scale development of the fields "Azeri-Chiraq-Guneshli" (ACG) and construction of the pipeline Baku - Tbilisi - Ceyhan have been carried out by 60%, the Director of the Project Mr. Yakobus Newvenkhauze has informed. By his words, the joint Azerbaijan-Turkish Company Azfen/Tekfen carries out the realization of the project; in these purposes it has attracted 2.5 thou persons, and the local staff makes 80 % of them.
Mr. Y. Newvenkhauze has informed that now a construction of two reservoirs for storage of 800 thou bbl of petroleum (125 tons) in each one. A height of each reservoir is 22 meters, a diameter - 100 meters. 6 thou steel sheets will be required for covering the reservoirs. They have been delivered from France.
They will be the largest oil reservoirs in Azerbaijan. They have been designed for oil produced within frameworks of the "Phase-1" of the full-scale development of the field ACG. And when the realization of the "Phase-2" begins, else two similar reservoirs will be constructed. During the peak of oil production from ACG in 2008, a capacity of the terminal will make up to 1MM bbl of oil per a day and up to 700 MM cubic feet of the natural gas.
Furthermore, the Director of the Project has informed that works on construction of the main pump station for the pipeline Baku - Tbilisi - Ceyhan have started already.
By the beginning of 2005 the Main Export Pipeline Baku - Tbilisi - Ceyhan will operate, and oil for it will be produced not only on the field "Chiraq", but also from "Azeri". and this dictates a necessity of the terminal extension. Within frameworks of "Phase-1" of the full-scale development of ACG, a volume of total production will make 20 MM tons of oil per a day. The production volume in the next stages will make totally 50 MM tons per a year. Today the terminal is able to process over 6 MM tons of petroleum per a year and after the extension this value will increase up to 22 MM tons. A total of works on the Sangachal Terminal Extension will make $345 MM.

THE WORKS ON EXTENSION OF THE SANGACHAL TERMINAL HAVE BEEN CARRIED OUT BY 60%

THE PARTICIPANTS OF THE SITTING OF THE SWG ON THE CASPIAN SEA HAS BEEN SATISFIED BY RESULTS OF THE TALKS IN ASHGABAD, HOWEVER THE MAIN PROBLEM STILL HAS NOT BEEN SOLVED

BAKU.10.09.2003.MEDIA-PRESS: In Ashgabad the next meeting of the special working group including Deputy Foreign Ministries of Azerbaijan, Russia, Kazakhstan, Turkmenistan and Iran on the legal status of the Caspian Sea has been completed. Reckoning up the meeting, its participants positively estimated results of two-year talks, though, as it becomes clear, there are not real progress on the main problem - the status of the sea.
The Vice-Premier of the Government of Turkmenistan, the Minister of the Foreign Affairs, Mr. Rashid Meredov has declared that as a whole the second reading of Convention project has been completed and during it important problems of the sea biological resources saving, ecology and safety were discussed,
The special envoy of the President of the RF on the Caspian Sea, the Deputy Foreign Minister of Russia Mr. V. Kalyuzni regretted that while the sides have not managed to agree on a date of a meeting of the Foreign Ministers of the Caspian basin, suggested by the Foreign Minister of the RF Mr. I. Ivanov on July in Moscow.
At the sitting the Vice Foreign Minister of Azerbaijan Mr. Khalaf Khalafov has offered to the Turkmen side a renewal of bilateral negotiations on the dividing the Caspian Sea. "It is very important for both the states to agree on the middle line in the sea", - he has said.
The last round of the Turkmen-Azerbaijan talks on seaching the mutual acceptable for both the sides method of establishing the middle line on the Caspian Sea was held on May 2001 in Ashgabad, however, as the previous ones completed without any results.
As it is known, Turkmenistan disputes with Azerbaijan on the belongness of "Azeri" and "Chiraq" included in the first international oil contract of Azerbaijan, which it had concluded with the consortium of the foreign companies as well as of the perspective structure "Kyapaz".
It was established in Ashgabad that the twelfth sittin of the SWG on the Caspian Sea will be held in Teheran on December 9 - 10, 2003.

VICTOR KALYUZNI: RUSSIA SHOULD HAVE COMBAT ABLE MODERN TROOPS IN THE CASPIAN SEA

BAKU.10.09.2003.MEDIA-PRESS: "Russia should have modern troops for securing peace in the region", - the Special Envoy of the President of the PF on the Caspian problems, the Vice-Foreign Minister of Russia Mr. V. Kalyuzni.
By his words, Russia, which recently organized military training in the Caspian Sea, has not any objections against similar steps of the other Caspian states, however categorically objects against attendance of foreign troops in the Caspian Sea.
The Russian diplomat has noted that demilitarization of the Caspian Sea in conditions of the nearest arrangement of the terrorism sources, is able to bring to not only political and military losses for all "the Caspian Five", but appearance of the foreign troops in the region. So the Russian delegation categorically objects against demilitarization of the Caspian Sea.
The Russian Special Envoy long ago already had become an example of inconsequence in the relevant society circles. Just as in the end of February he has declare that "the main principle of the Convention, which will be developed by the working groups on the Caspian legal status determination, provides an absence of any troops in this reservoir. While there is the intensity in the region, the Caspian fleet presents in the Caspian Sea, however we shall oppose to foundation of new naval fleet", - he has stated in connection with the intension of Kazakhstan to form its own naval fleet.
"We talked and talk about the peaceful Caspian Sea and at the same a question about some supplementary military troops here is put in the agenda; in such case the reasonable question appears: "Why?" And there is a single answer: "It should not be so", - Mr. Kalyuzni has declared without appellations. We shall remind that it was said in the end of February 2003. Otherwise, the Russian diplomat has affirmed without any diplomatic casuistry that Moscow intends to dominate in the Caspian Sea and will strengthen its fleet in the Caspian Sea for this. And the rest Caspian states even should not think about this.

"UKRTRANSNAFTA" REQUESTS OIL FROM RUSSIA, KAZAKHSTAN, AZERBAIJAN AND UZBEKISTAN FOR FILLING UP THE PIPELINE "ODESSA - BRODY"

BAKU.10.09.2003.MEDIA-PRESS: "Ukrtransnafta" suggested to the state organs and companies of Russia, Kazakhstan, Azerbaijan and Uzbekistan to consider the possibility of 380 - 420 tons of technological oil technological oil deliveries for the oil pipeline Odessa-Brody. As the press-service of "Ukratransnafta" notes, this company wants to purchase the technological oil in conditions of payments by installments during three years (the first payment should be done in a year after oil reception).
The decision to buy the technological oil for "Odessa-Brody" is based on the necessity of preventing a threat to the technical state of the oil pipeline in the autumn-spring period, as the pipeline still has not been filled up. However, the information from the press press-service of "Ukratransnafta" affirms differs: "operation of the pipeline "Odessa - Brody" should start immediately after acceptance of decision on choice of oil transportation trend by the Government".
The letters with offers on purchasing technological oil, signed by the Director of the Company Mr. Stanislav Vasilenko, were directed to the Ministry of Energy and Mineral Resources of Kazakhstan, Minenergo of the RF, the State Oil Company of Azerbaijan, "Uzbekneftegaz", "KazMunayGaz", the number of the largest Russian Oil Companies. "Ukrtransafta" also appealed to the state organs and oil companies with a request to make available the information about possibility and trends of operation of the pipeline Odessa-Brody in a a case of filling up by the technological oil.

IRAN INTENDS TO INCREASE PURCHASES OF THE KAZAKHSTAN OIL

BAKU.10.09.2003.MEDIA-PRESS: The Minister of Transport of Iran Mr. Akhmad Khorram has declared that in the next year his country intends to increase volumes of purchased oil in Kazakhstan up to 200 thou bbl per a day. By today this figure makes about 120 thou bbl of oil per a day.
Within swap operations the Kazakhstan oil is delivered to the OPP in Tebriz-City and the analogous oil volumes are delivered to the world markets, and this brings large incomes to Astana. However, the United States of America repeatedly called the Central Asian countries to refrain from conclusions of long-term contracts with the Iranian side.
If the Kazakhstan chiefs decide to ignore recommendations of Washington, in the next year, oil carriers will transport oil to the Iranian port Neka, and from where the oil will be delivered to the Tebriz OPP by the pipes. In such conditions the goods turn-over between both the countries will be able to make more one billion dollars only on petroleum trade, - the Central Asian News Agency reports.

"A CONSPIRACY" OF PETROLEUM KINGS

BAKU.10.09.2003.MEDIA-PRESS: The world economics requests the fuel, however it will not receive it. The OPEC will not increase deliveries now for then to receive profits from consumers in the future. The author of the article "A conspiracy of Petroleum Kings" published in the newspaper "Izvestiya" expresses similar opinion.
The pressure on the OPEC amplifies with every day: the cartel is claimed in reducing the control for market in future an unwillingness to react quickly on its demands. There are requests of increasing the deliveries and reduction of prices, however the cartel stands on its positions. The season of large purchases comes and if the valve will not be opened, the high prices will pull the world economic down. However, OPEC does not intend to give in the pressure of the opponents, and most likely on September 24 a quota values will remain as before.
The Executive Director of the International Agency (IEA) Mr. Claude Mandil declared that the OPEC looses the managing the market. "The cartel's control begins to weaken since 1998, and most probably the tendency will not change", - Mr. C. Mandil thinks. However, getting worse of the situation at the world market, but not the status of the OPEC is a true cause of the IEA experts' worriness. "How long else OPEC will tolerate reduction of its share at the market? - Mr. Claude Mandil asks. - Cartel reduces its share at the market, though oil demands are in progress".
The Director of the Agency appealed to the OPEC to reduce prices for oil. The IEA experts regard that this is necessary in connection with fuel demands in the world before beginning of the heating season. By the words of Mr. S. Mandil, the prices now are very high and cartel should promote to their reduction. It is interesting that Director predicts with this, that if the OPEC would not want to do it, the prices will reduce all the same in future. "The pressure on the market grows with increasing deliveries of the independent producers", - Mr. S. Mandil says.
While the OPEC does not make superfluous movements. "There are not any base for changing quotas now", - the General Secretary of Cartel Mr. Alvaro Kalderon declared. By his opinion, the production top of 25.4 MM bbl per a day is adequate for balance maintenance at the market in accordance with the cartel forecasts. Meanwhile the independent producers actively grow the industrial capacities. By information of the OPEC, this year oil demands will grow only by 0.6 MM bbl per a day, and the production of the independent producers will grow more significantly - by 1.1 MM bbl per a day.
"There is a lot of oil at the market", - Mr. A.C. Kalderon thinks. The officials of the Saudi Arabia and Kuwait had already informed that cartel would not change petroleum production volumes, as oil prices established by the Organizations remain within the corridor of $22 - 28 for a bbl, and the cartel regards it suitable for itself.
The OPEC does not intend to change its strategy, which is considered forced in the cartel. "The reduction of cartel's share at the market is explained by its intension of stabilizing the market and prevention of the price collapse", - the analysts of the OPEC think. Speculations on unpredictable situation with the Iraqi oil as well do not affect on the Management of the cartel.
"We shall discuss a role of Iraq, when it returns to the OPEC", - the General Secretary of the OPEC thinks. Still it has not been determined, whether the official of Iraq will take part in the next summit of cartel on September 24. As the President of the OPEC Mr. Abdulla al-Attiya informed, they will invite the new Minister of Oil of Iraq to the summit meeting only in a case of recognizing the Government of Iraq by the UN. The OPEC also does not fear of absence of Iraq at the world petroleum market. "If Iraq does not achieve the previous export volumes, the Saudi Arabia and Kuwait will be able to cover these volumes", - the cartel thinks.
In the next year the OPEC orients on keeping the production volumes of the current year - about 25.4 MM bbl daily. "For the growth in the production of independent producers and weakening of the demands in the world we have not grounds for amplifying own production, - this is said in the analytical letter of the OPEC. - And though we do not plan to increase export quotas, it will be much difficult to save stability at the market".
By information of the OPEC, in the next year the oil demands will grow from 78.09 MM bbl per a day up to 80 MM bbl, however much more petroleum will be delivered to the world market - over 82 MM bbl daily. In 2005 the break between demand and suggestion will increase and a volume of spare oil will reach 7 MM bbl daily: 87.3 MM bbl will be delivered to the market, however the demand will not exceed 80 MM bbl.
Although they in the OPEC speak about forced making a donation of itself for the market and its stability, this self-sacrifice will not be too prolonged. In accordance with the last analytical report of this organization, the capacity of the cartel will increase by 4 MM bbl daily for a year: in 2004 the production will make 32.4 MM bbl, and in 2005 - 36.4 MM bbl daily already. And the production of the independent producers for 2004 - 2005 will grow only by 1 MM bbl per a day - from 49.9 up to 50.9 MM bbl. This tells about that period of self-sacrifice will finish for the OPEC in the next year. And then the cartel will get an opportunities for a revenge, - "Izvestiya" resumes.

ITALY PROMISED TO ASSIST TO JOINING OF TURKEY TO THE EUROPEAN UNION

BAKU.10.09.2003.MEDIA-PRESS: The Premier of Italy, Mr. Silvio Berluskony, who now presides in the EU promised to promote to joining of Turkey to the European Union. He has declared about this during the meeting in Roma with his Turkish colleague Mr. Tayip Erdogan, who was in Apennines with the working visit.
After participation in the work of the international Economics and Politics Forum in the Italian town Chernobbio, the Premier Mr. S. Berluscony in the official cottage of the MFA of Italy invited Mr. Erdogan to supper. High-ranking officials of the business circles, leading bankers, managers of the large companies presented there.
In particular, during the meeting it became known that the Italy is on the second place on the volume of trade-economical relations with Turkey after the FRG; recently Roma allocate long-term loan in a volume of $8.5 bn.
The local press notes formed confident character of relations between the Premiers of Italy and Turkey: recently Mr. S. Berluscony visited the wedding of Mr. T. Erdogan's son.

THE LEADER OF THE ARMENIAN PARTY "GNCHAK" MURADYAN IS RESPONSIBLE FOR MURDERS OF 500 THOUSAND MUSLIM TURKS.

(Cezmi Yurtsever) wrote a book about Armenian terrorist organizations and their massacres on Muslim Turks. The book is based on archived sources of the Ottoman Empire and the United Kingdom. The book's name "The Book of Muradyan (Muradyan Kitabi)" comes from the leader of Hinchak Party Muradyan, who is responsible for killing 500,000 absolutely guiltless Muslim Turks before and during the First World War. Research of the author supported by the Governorship of Adana are related with "Documenting of the History Project" and began in the district of Saimbeyli (Adana) in 1989.
Historian Cezmi Yurtsever said, "Hamparsum Boyaciyan as other leaders of Hinchak Organization graduated from the Armenian Church Education Center named as Marhasahane, which is directed by Father Jirayr, in the 1880's. Graduates of the same school took part in the Armenian Hinchak Revolution Organizations founded in Europe and Istanbul in the 1890's. Doctor Hamparsum Boyaciyan began to be called Muradyan and became the leader of the Hinchak Revolution Party. He led Kumkapi (Istanbul), Sason (Diyarbakir), Zeytun (Kahramanmaras) rebellions and became the deputy of Adana in the Ottoman Parliament in 1909. In 1915, he quit his task and went to Sivas to betray Ottoman Armies, and directed guerilla wars from the Yildiz Mountains. In 1918, he gave an order to his followers to kill all Muslims. More than 500,000 Muslim Turks in Erzincan, Erzurum, Kars, Van and Trabzon were brutally killed by Armenian Dashnak-Tsutyun and Hinchak Parties."
"Recent terrorist organizations have threatened Turkey like the Kurdistan Workers' Party (PKK) and the Secret Army for the Liberation of Armenia (ASALA) and used the same terrorist tactics used by Muradyan," said Yurtsever.