THE BUDGET OF AZERBAIJAN HAS EARNED 390 BN MANATS ($79.26 MM) FROM PRIVATIZATION OF SMALL AND MIDDLE ENTERPRISES
BAKU.26.09.2003.MEDIA-PRESS: For nive months of the current year the state budget of Azerbaijan has earned 23.8 bn manats ($4.83 MM) from privatization of middle and small enterprises. Since the beginning of the year the privatization of 748 enterprises has been carried out. Totally, since 1994 about 29 thou objects were privatized and the state budget has earned over 390 bn manats ($79.26 MM).
BAKU.26.09.2003.MEDIA-PRESS: Incomes received by physical and juridical persons of Azerbaijan as dividends on all kinds of stocks, probably will be taxed by rate of 10%, - the Agency "Interfax-Azerbaijan" has been informe in the Ministry of Finances of the Republic.
BAKU.26.09.2003.MEDIA-PRESS: The cooperation of Azerbaijan with the NATO in the scientific sphere has a great importance from the point of view of development in the field of the informative-communicative technologies. The President of the National Academy of Sciences of Azerbaijan M. Makhmud Kerimov has declared this on the seminar of NATO on the modern technologies, which was opened on September 26 in Baku.
BAKU.26.09.2003.MEDIA-PRESS: The Arbitrage Laboratory for checking up food product quality has opened in the second by size city of Azerbaijan - Gyanja. It will operate under authorities of the Consumer Goods Expertise Center of the Ministry of the Economic Development of Azerbaijan.
BAKU.26.09.2003.MEDIA-PRESS: Today BP, on behalf of its partners in the Azerbaijan International Operating Company (AIOC), the Shah Deniz Project and the Baku-Tbllisi-Ceyhan (BIG) oil export pipeline project announced the Second Biodiversity Competition award in Azerbaijan on the theme of "Ecology and Economy in Harmony". The award presentation ceremony which was held today in the Hyatt-Nakhchivan hotel was attended by representatives of all relevant organisations, government authorities, NGOs and the media.
BAKU.26.09.2003.MEDIA-PRESS: The company BP started the projecting exploration well on the perspective structure "Inam" of the Azerbaijan sector of the Caspian Sea. The Chief of the Company BP-Azerbaijan Mr. D. Woodword has informed the journalists about this.
BAKU.26.09.2003.MEDIA-PRESS: The problems appeared during drilling on the field "The Western Azeri" will not affect on terms of the realization of the project of fullscale development of the fields "Azeri - Chiraq - Guneshli" and in accordance with accepted schedule the first oil will be produced on "Azeri" in the end of the next year. The President of the Company BP-Azerbaijan Mr. D. Woodword has informed journalists about this.
BAKU.26.09.2003.MEDIA-PRESS: The government of Azerbaijan revises wholesale prices for power carriers in Azerbaijan. The Minister of Fuel and Energy of Azerbaijan Mr. Mejid Kerimov has informed journalist about this.
BAKU.26.09.2003.MEDIA-PRESS: Purchasing supplementary 1.5 bn cubic meters of gas provided by the contract between the JC "Azerigaz" and the company "Itera" depends on free finance means. By today Azerbaijan has not such funds and so supplementary purchases are not carried out. If in the next year the means are found, in 2004 these volume will not be required from "Itera", the Minister of Fuel and Energy of Azerbaijan Mr. Mejid Kerimov has said.
BAKU.26.09.2003.MEDIA-PRESS: In 1994 an issue on transferring the gas distribution networks of Azerbaijan in long-term managing will be considered, the Minister of Fuel and Energy of the Republic Mr. Mejid Kerimov has informed.
BAKU.26.09.2003.MEDIA-PRESS: In 2004 the American Company Castner intends to complete the mounting of the electronic managing system at the installation ELOU-ABT-6 of the Baku Oil Processing Plant "Azerneftyag", the Agency "Interfax-Azerbaijan" has been informed.
BAKU.26.09.2003.MEDIA-PRESS: By plan up to $63 bn will be invested to the oil and gas sector of Turkmenistan trom 2003 up to 2020, moreover, the direct foreign investments to the oil field in accordance with agreements on the production dividing will make $25.6 bn.
BAKU.26.09.2003.MEDIA-PRESS: The Iranian National Company of the Oil Tanker Fleet conducts negotiations on purchasing 7 tankers of total deadweight of 775 thou tons. In the next several months negotiations should be completed, the Executive Director of this company Mr. Mokhammad Suri were completed.
As well since the beginning of the year 27 resolutions on privatization of objects under construction. In result of this 2.5 bn manats ($581.13 thou) were transferred to the state budget. Besides of this the privatization of 124 lots, where private companies are located was carried out. This made supplementary 5.6 bn manats ($1.138 MM) of earnings.
THE AUTHORITIES OF AZERBAIJAN INTEND TO INTRODUCE 10% DIVIDENDS TAXES SINCE JANUARY 1, 2004
"A matter on dividend taxation has been agreed in the Government and the project of the relevant law has been prepared", - the source in the Ministry of Finance determined.
Since 1999 tax privileges were into force in the country and they provided exemption from taxes on incomes received as dividends from stocks of the enterprises and companies. The privileges were established for stimulation of stocks receiving by physical and juridical persons.
THE NATO SEMINAR ON THE MODERN TECHNOLOGIES PASSES IN BAKU
"I am sure that the present seminar will become the significant step in strengthening of cooperation between the NATO and Azerbaijan in the scientific sphere", - the President of the Academy of Sciences has said.
70 officials from 28 countries take part in the seminar. Azerbaijan joined to the project of the scientific program of the NATO for the countries of the Central Asia and South Caucasus "Virtual Silk Way" on May of this year. Joining of the scientific-educational foundations of the countries of the Central Asia and South Caucasus to high rapid satellite internet-set of Europe.
THE ARBITRAGE LABORATORY FOR CHECKING UP FOOD PRODUCTS QUALITY HAS OPENED IN GYANJA
As Media-Press has been informed in the Ministry of the Economic Development, the activities of the laboratory will comprehend all the northern-western zone of the Republic, including the Gazakh, Agstafa, Tovuz, Gedabey, Shamkir, Dashkesan, Khanlar, Samukh and Goranboy regions.
The modern equipment of the laboratory will allow conduction of the food products analyses for their correspondence to the internal state and international standards and as well supplying the people of the country by more qualitative products.
The similar laboratory was opened in the Nakhchivan Autonomous Republic in the past year.
THE WINNER OF THE COMPETITION "ECOLOGY AND ECONOMY IN HARMONY" HAS BEEN DETERMINED
The competition, which is part of BP's Biodiversity Strategy in Azerbaijan, supports BP's and its partners commitment to undertaking a series of specific biodiversity initiatives in the countries and areas where we operate. This year's competition is based on the success of the first competition and has the same objective which is to make a real, measurable and positive impact on the biodiversity of the world,
The competition was announced in May, 2003 via detailed advertisements in the press. Two boards were set up for evaluation of proposals to ensure a competitive selection based on the following criteria: Sientlfic soundness, long-term benefit, dual benefit for climate change and biodiversity, sustainability initiatives, measurable performance and success, and cost effeciveness. The boards included a Scientific Advisory Panel comprised of Azerbaijan's leading experts and representatives of the academic community, and an Awards Committee made of BP's experts and management representatives.
The proposals were evaluated through a three-stage process -first, by Awards Committee for screening of all submissions, second, by the Scientific Advisory Panel for technical evaluation and then by the Awards Committee for making sure that the projects meet BP's standards and policies.
Some 25 projects submitted by 23 local NGOs were entered In the competition by the June 30, 2003 deadline. The projects which were selected at the first stage as being relevant to the theme of the Competition, underwent further evaluation, and some others were assessed as being of a social or environmental nature and as such were presented to BP's relevant departments for further consideration.
Following the three-stage evalutaion process the main prize of this year's competition has been awarded to the project submitted by Azerbaijan Demographers Association and aimed at restoring the sturgeon stock and protecting its biological diversity. The value of the project is $20,000.
In addition, two participants have been awarded a $1,000 consolation prize each in support of their capacity-building efforts. These are the Society of Azerbaijan Zoologists who submitted the project "Rare and endangered bird species of the Caspian's South coast and their protection" and the Azerbaijan Ornithological Society who submitted jointly with the NABU organisation of Germany the project "Establishing a monitoring programme for important bird areas in Azerbaijan". In his speech at the award ceremony David Woodward, BP Azerbaijan President, said: "Biodiversity is the basis of life-supporting systems on which we all depend. There have been biodiversity losses in every part of the world, Azerbaijan included.
THE COMPANY BP STARTED THE PROJECTING THE EXPLORING WELL ON THE AZERBAIJAN OFFSHOR STRUCTURE "INAM"
By his words, at the present time the modern seismic map of the area is made and a point for drilling of new exploration well is chosen, which should be approved by the foreign partners of BP within the Project and by the State Oil Company of Azerbaijan. Afterwards the projecting of the well will start. If the works go by schedule, it will be possible to start a drilling of this well in the end of 2004. The drilling will be carried out from the submersible floating drilling installation (SFDI) "Istiglal".
As Media-Press has informed earlier, the drilling of the first exploration well INX-1 on "Inam" was stopped for geological complications. It started on December, 2000. The project depth of the well made 5025 m. However, in spring of 2001 the sinking was stopped at a mark 4550 meters for a reason of high layer pressure in the well. The equipment SFDI "Istiglal" allowed to keep a pressure up to 1050 atm. In connection with this a decision to stop a drilling was taken, while an optimal works continuation version will be found out. A choice was between continuation of the sinking with applying of the special equipment and the drilling of new well. Mr. D. Woodward has noted that the first exploration well will stay preserved while. In a case if the second exploration gives positive results, a possibility of renewal of the drilling works also on the first well will be considered.
The contract of PSA type on the exploration and development of the structure "Inam" was signed on July 21, 1998 and ratified by the Parliament of the country on December 1, 1998, The shareholders are: the SOCAR - 50%, BP - 25%, Shell - 25%. A depth of the sea on the structure varies within the ranges from 30 up to 150 m. A total length of productive layers makes 18 km, a width - 4.5 km , a height - 700 m . A depth of the productive layers laying makes about 4500 m.
By the estimations of the experts of the SOCAR, hydrocarbonate supplies on the structure make 100MM tons of oil and 100 bn cubic meters of gas. By the conditions of the contract, in a case of industrial oil supplies discovery, the field "Inam" will operate for 25 years. The investments in this project will make $1.7 - 2 bn.
THE PRESIDENT OF BP-AZERBAIJAN: DAVID WOODWORD: PROBLEMS APPEARED ON "THE WESTERN AZERI" WILL NOT AFFECT ON TERMS OF THE DEVELOPMENT OF THE FIELDS ACG
We shall remind that shift of the drilling strings of nine advanced wells has occurred on the field "The Western Azeri" (megastructure "Azeri - Chiraq - Guneshli" in the Azerbaijan sector of the Caspian Sea). The "bag" drilling of these wells was completed else on August. Totally 4 thou meters were drilled. Now the geotechnical researches are conducted now there and only after their completion it will be possible to determine the next works and damages. At the same time Mr. D. Woodword has emphasized that such accident is not unusual in realization of similar large projects.
By the present time a drilling of three geotechnical wells is conducted for determination of factors, which caused the shift of the drilling shifts. The exploration is conducted from the SSDR "Dede Gorgud". A depth of geotecnic wells will not exceed 200 m. The results of researches will help to experts not only in understanding the reasons of the shift of the drilling strings, but determination of new places for continuation of the "bag" drilling. Now it is known that the shift of the strings occurred not by fault of the contractor, and there were no any problems with drilling equipment. The ecological factor is the main factor.
The repeated drilling on the "Western Azeri" will start in five months. By this time new base support will be installed. For the present the SSDI "Dede Gorgud" will be moved to the field "The Central Azeri" for continuation of drilling works there. We shall remind that the program of the advanced drilling on the "Western Azeri" provides sinking 10 wells (9 working wells and one for drilling mud pumping).
By the words of Mr. W. Woodword, by the projects "Central Azeri" and "Eastern Azeri", the works go in advance of the schedule and the expenses were less there than it was provided.
THE GOVERNMENT OF AZERBAIJAN REVISES THE INTERNAL WHOLESALE PRICES FOR POWER CARRIERS IN AZERBAIJAN
We shall remind that bringing of prices for power carriers in Azerbaijan up to level of the world ones is one of the requirements of the International Monetary Fund. However, the Government categorically refuses of carrying out this step.
So, by the words of the Minister of the Economic Development of Azerbaijan Mr. Farkhad Aliyev, recommendation of the IMF is not feasible. "In the beginning of the year wholesale prices were increased. In the next time issue on increasing retail prices will not considered. If we see that the Azerbaijan citizens will be able to pay for the relevant services by the world prices we shall return to this matter", - the Minister has said.
In his turn, the World Bank keeps some different policy in this issue. For example, the official of the WB in Azerbaijan Mr. Akbar Nowman has declared that on this stage the WB regards of high priority the improvement of gathering payments for power carriers consumption, but not increasing prices for them. Mr. A. Nowman considers that the situation has been formed in Azerbaijan when for the normal operation of gas- and energetic distribution structures supplementary state subsidies are required from one side and from the other side poor layers of the people are not able to pay out for these services. At the same time he has emphasized that in the definite stage the state should decide increase tariffs, however this is the next problem.
Besides of this it would be necessary to develop measures on the social protection of the people to prevent damages on poor layers. For instant the experts of the WB and the Government of Azerbaijan work out similar program.
LACK OF FREE MEANS DO NOT ALLOW AZERBAIJAN PURCHASING SUPPLEMENTARY 1.5 CUBIC METER OF GAS FROM "ITERA"
On March 24 the contract on deliveries subsidiary 1.5 bn cubic meters of gas to Azerbaijan in 2003 was concluded between the JC "Azerigas" and company "Itera" in Baku. The gas deliveries should be carried out by price $52 for 1000 cubic meters. The Azerbaijan side should redeem 50% of the cost by equipment and the other 50% by money.
As to the other contract - between the SOCAR and "Itera" - on deliveries of 4bn cubic meters of gas, there are not any problems. "This contract works, and its cost is redeemed entirely", - Mr. Kerimov has emphasized.
The Minister has reminded that Azerbaijan produces little above 5 bn cubic meters per a year and purchase 4 bn for electric power stations. "With this the demands of the country are higher and it would necessary to produce and import. Money are necessary as well for this. After this gas production will start on the "Shakh-Deniz and necessary volumes will be taken for internal needs from there", - the Minister has noted.
IN 2004 AN ISSUE ABOUT TRANSFERRING OF THE GAS DISTRIBUTION NETWORKS OF AZERBAIJAN FOR LONG-TERM MANAGING WILL BE CONSIDERED
By his words, the company, which would want manage by the gas networks, should receive profits, so prices for gas should be commercially attractive.
As Media-Press has been informed in the Ministry of the Economic Development, delay with consideration of this issue is connected with the privatization of the Azerbaijan Gas Processing Plant (AGPP). The Ministry wants to privatize this enterprise not separately, but jointly with other objects of the field. The point is that the AGPP was offered for privatization repeatedly, however there was nobody, who intended to purchase it.
By the words of the Minister of the Economic Development Mr. Farkhad Aliyev, before start of the privatization of the AGPP, several problems would be solved. They are following: gas purchases, its sales to the people and as well the state support to gas exportation. On January of 2002 the company was offered for privatization, however dissolving such problems as wholesale prices for gas, which is administrated by the state in Azerbaijan and makes 64 thou manats ($13) per 1000 cubic meters has brought to that the competition was not held. After privatization new owners are able to rise a problem on increasing the gas prices and other products of the company.
The AGPP was built in 1061. The natural gas and gas condensate is processed in the enterprise. The dry gas, gas benzene, technical butane and heavy condensate are the main production of the company. The industrial capacity of the company allows processing 6 bn cubic meters of gas per a year.
IN 2004 THE AMERICAN CASTNER WILL COMPLETE THE MONTAGE OF THE SYSTEM OF THE ELECTRONIC MANAGING AT THE OIL CLEANING INSTALLATION ON THE OPP "AZERNEFTYAG"
The contract with Castner by a total of $8.4 MM has been conclude on February of the current year. At the present time, it has been noted on the plant, the British company Lotar Trading carries out the capital repair of the installation. The contract with this company by total of $5 MM was also concluded on February. Besides of carrying out the repairs, the Company delivered necessary materials and equipment by a total of $6.1 MM. The completion of works is planned up to the end of 2003.
The OPP "Azernefteyag" joins into the structure of the State Oil Company of Azerbaijan. The Plant is specialized on the production of the diesel fuel, mazut, aircraft kerosene, different kinds of oils. The annual capacity is 14 MM tons of oil production per year, however during the last years the company process about 3 MM tons of oil per a year.
THE TURKMEN FATA-MORGANA: INVESTING $63 BN TO THE OIL AND GAS SECTOR FOR 17 YEARS
The Minister of Oil and Gas Industry and Mineral Resources of the Republic Mr. Tachberdi Tagiyev has declared this in his speech at the VIII International Conference "Oil and Gas of Turkmenistan" with participance of 75 oil-gas and service companies, leading producers of equipment and technologies of the international finance institutes from the USA, Russia, Ukraine, Kazakhstan, Japan, China and a number of countries of Europe.
By the words of the Minister, for 17 years it is planned to put into operation the main industrial funds by $26.2 bn and purchase equipment by 9.3 bn.
At the present time, Mr. T. Tagiyev has said, five agreements on the production dividing are realized, and two projects of them are realized on the land and three ones - in the Turkmen sector of the Caspian Sea.
The Minister has emphasized that "foreign investors working in conditions of APD significantly increased their contribution in development of oil and gas sector of Turkmenistan". For the last seven years above $800 MM were contributed in the oil industry and expected investments will make $180 bn in the current year.
If basing on figures given by the Minister, the realization of the ambitious plans of Turkmenbashi would scarcely be possible at such rates. But annually a little less than $4bn would be necessary for investments to the oil-gas sector of Turkmenistan. Meanwhile the investment climate in the country is rather is not very favourable. It is not occasionally that there is not any company, which intended to invest in the gas production in Turkmenistan in spite of the largest its supplies in the country. The foreign companies, which are not widely known produce oil and gas in Turkmenistan as a rule produce gas in Turkmenistan.
In addition, the potential investors are afraid of unpredictability of the President of the country Mr. Saparmurat Niyazov. There is a lot of evidences to this: repeated breaks of the agreements with the Russian "Gazprom" on deliveries of the Turkmen gas serve an evidence for this. The similar situation may be formed now around gas deliveries to Ukraine and laying the pipeline along the northern Caspian shore. And else one colossal project should be the next: the construction of the Transafghan gas pipeline, by which deliveries of the Turkmen gas to Pakistan through Afghanistan are planned and in favourable conditions - to India. Moreover, analysts still are not able to understand, where will Turkmenbashi take so much gas - and for "Gazprom", which should entire all the Turkmen gas as well for Ukraine and Transafghan gas pipeline.
IRAN CONDUCTS NEGOTIATIONS ON PURCHASING 7 OIL TANKERS
By the words of Mr. M.Suri, by the end of the year, 60 MM tons of oil and oil products will be transported. For the first five months of 2003 (a year starts since March in Iran) 25 MM tons of oil and oil products were transported already, i.g. every year the tankers of the National company of the oil fleet transported in average by 5 MM tons of oil and oil products. Moreover, they were not produced by Iran. The Iranian tankers carried out also transit carriages for many countries as well the Saudi Arabia and Kuwait.
Mr. Mokhammed Suri has touched also the problem of the Iranian gas deliveries to India. By his words, if Deli will decide to purchase the liquidated gas from Iran and Iran will buid the necessary tankers for this, by the end of 2007, 4 vessels will be built and by 2010 - 12 vessels, Mr. Suri has said and added that in a case of carrying out this project 27 MM cubic meters of gas will be delivered to India.
