HAS THE PROBLEM OF THE PIPELINE ODESSA - BRODI TAUGHT NOTHING KIEV?
BAKU.05.04.2004.MEDIA-PRESS: Most likely the problems on the pipeline "Odessa - Brodi" have taught nothing to Kiev. The ill-starred pipe built by the accurate phrase of the Deputy Foreign Minister of Russia Mr. Victor Kalyuzni "without a mind and nowhere" stays idle as it is known for a paradoxical reason - projectors has not thought timely, from where they will take oil for the route "Odessa - Brodi".
BAKU.05.04.2004.MEDIA-PRESS: The Baku Steel Company has started exportation of its production to Russia. The first two wagons of the construction armature have been delivered to the RF. Azerbaijan imported armature from Russia and Ukraine before. However owing to the quality of the production of the Baku Steel Company its export has become possible.
BAKU.05.04.2004.MEDIA-PRESS: The Government of the Russian Federation has decided to permit cargo ships of Azerbaijan to travel by the inner waterways of the RF for the navigation period of 2004 from the Azov Sea to The Caspian Sea and back. The Premier of the RF Mr. Mikhail Fradkov has signed the relevant order.
BAKU.05.04.2004.MEDIA-PRESS: On April 25 - 26 the first international conference on issues of the Iranian gas exportation will be held in Tehran. Its chief goal is attraction of the foreign investors to the gas sector of the IRI.
BAKU.05.04.2004.MEDIA-PRESS: Up to 2010 Iran will purchase 51 tanker by a total cost of $3.1 bn. The Exexutive Director of the Iranian National Company of oil-bulk fleet Mr. Mochammad Suri, Iran news informs. By his words, 17 oil bulk tankers by a const of $557 MM are in the construction stage. Else 22 tanks by a cost of $550 MM are projected.
BAKU.05.04.2004.MEDIA-PRESS: Tomorrow the first Azerbaijan-Russian economic forum opens in Baku and officials of business circles and governing structures of both the countries will take part in it. It will be devoted to discussion of tendencies and perspectives of the Azerbaijan trade-economical relations.
BAKU.05.04.2004.MEDIA-PRESS: The President of Armenia Robert Kocharyan promises to give a corresponding rebuff to the opposition, if it decides to exacerbate the situation.
BAKU.05.04.2004.MEDIA-PRESS: Expenses for the construction works on the project "Azeri" (within full-scaled development of off-shore fields "Azeri - Chiraq - Guneshli") have made $3 bn. This year else $1.7 will be spent. The Vice-President of the Company BP-Azerbaijan Mr. Nil Show has informed about this.
BAKU.05.04.2004.MEDIA-PRESS: The enlarging of the Sangachal terminal within frameworks of the development of the fields "Azeri - Chiraq - Guneshli" goes in accordance with the established schedule. Up to date 90% of all works have been done. The analyst of the project of enlargement of the Sangachal terminal Mr. Nadir Imanov has informed about this.
BAKU.05.04.2004.MEDIA-PRESS: The American McDermott Caspian Contractors has started the modernization of the Diving Subsidiary Ship "Tofiq Ismailov" by the order of the Company BP-Azerbaijan.
BAKU.05.04.2004.MEDIA-PRESS: For January - March of the current year 1.26 bn cubic meters of gas were produced in Azerbaijan and this is by 4.9% more than it was provided by plan.
BAKU.05.04.2004.MEDIA-PRESS: For three months of the current year the State Oil Company of Azerbaijan and the JC formed at its sharing produced 2.23 MM tons of oil and this is by 2.6% or 55.5 thou tons more than it was planned. As Media-Press has been informed in the SOCAR, the oil production has increased by 0.6% comparatively with the analogous period of the past year.
BAKU.05.04.2004.MEDIA-PRESS: The Marketing and Economic Operations Office (the MEEO) of Azerbaijan exported 103.618 thou tons of oil products on March of the current year.
BAKU.05.04.2004.MEDIA-PRESS: A criminal action on diversion on the gas pipeline Mozkok - Gazi-Magomed has has been brought in Dagestan. We shall remind that on the past Friday in the evening the piece of the gas pipeline was broken in result of blast. Not only residents of Dagestan stayed without gas supplying, as well gas deliveries to Azerbaijan were stopped.
BAKU.05.04.2004.MEDIA-PRESS: The Mtatsiminda-Krtsanisi District Court of Tbilisi has satisfied the action of the Association "The Green Alternative" and so made the Parliament of Georgian liable for ensuring the official publishing of intergovernmental treaty between Georgia, Azerbaijan and Turkey "About the transportation of oil on the Main Exporting Pipeline Baku - Tbilisi - Ceyhan" on the territories of Georgia, Azerbaijan and Turkey" and as well appendixes to the treaty.
Now Ukraine intends to produce and export the LNG, although itself feels a deficiency of "blue fuel" and imports it.
The National Joint Company (NJC) "Naftagaz Ukraini" has announced about the intension of building of plant on the production of liquidated natural gas (LNG) by a capacity of 6 bn cubic meters in one of the ports of the Black Sea. In spite of deficiency of gas in the country, "Naftogaz" plans to adjust the gas export, produced on the Black Sea shelf. The approximate cost of the project makes $1.2 - 1.5 bn.
By information of sources of the newspaper "Kommersant" in the government of Ukraine, the construction of the plant on the industrial are of the port Yuzni near Odessa, where the OPP works is one of preferable considered versions. By the words of the President of "Naftagaz Ukraini" Mr. Yuri Boyko has received a preliminary approval of the government of Ukraine and to date offers on negotiations have been delivered to a number of the European oil and gas companies. "The construction of the plant will enlarge the cooperation of our company with our European energetic corporations as we intend to create the JC on parity base and finance the construction of the plant on the scheme 50:50, - the Deputy Chief of the Office of "Naftagaz Ukraini"Igor Voronin has declared to the Russian issue. - Besides, the investor should take liabilities on long-term purchase of the LNG"
The officials of press-service of "Naftogaz Ukraini" have informed that negotiations began with a number of the Spanish companies, however the project will be offered not only to Spanish, but other companies from the countries of the Mediterranean basin. By data of the newspaper "Kommersant", the offer on sharing in this project has been sent and to Chevron Texaco - supposed partner of "Naftogaz Ukraini" on operation of the oil pipeline Odessa - Brodi.
Everything would be well, however the problem is that proper gas production in Ukraine makes slightly more than 20 bn cubic meters at the demand of the country above 70 bn cubic meters annually. And this deficiency is covered in account of import from Turkmenistan (36 bn cubic meters in 2003) and "natural payment" for transit of gas of "Gazprom" on the territory of Ukraine (26 bn cubic meters). By 2006, when it is supposed to start of the construction of the plant, "Naftogaz of Ukraine" plans the increasing the production up to 24 bn cubic meters.
However, it is emphasized here that they intend to process neither Russian or Turkmen gas into the LNG, but the fuel, which will be produced on shelfs of the Black and Azov Seas. By 2006 as it is conjectured, the growth in production in the projects of "Naftagaz" and company Indusmin in Kerch will exceed demands of Krim in fuel and gas delivery to the plant of the LNG may be carried out through the system of gas pipelines "Soyuz", which deliver gas of "Gasprom" to Balkan.
We shall note that the project of "Naftogaz" is the first one of the LNG production in countries of the former USSR out of Russia. "Gazprom" itself considers versions of the construction of plants of the LNG on the Far East, Archangelsk and Murmansk oriented for other markets.
BAKU STEEL COMPANY HAS STARTED EXPORTATION OF THE CONSTRUCTION ARMATURE TO RUSSIA
As the Company has informed, they export armatures to Iran, Kazakhstan, Turkmenistan, UAE and Georgia. Two large contractors of the oil company BP - the joint Azerbaijan-Turkish enterprise Azfen and Turkish TML Borova buy annually 20 thou tons of armature.
The officials of the company have noted that the Switzerland International Company on Quality Control (SGS) guarantees a quality of the production.
The project capacity of the plant is 350 thou tons, the real annual production volume makes 250 thou tons.
THE CARGO SHIPS OF AZERBAIJAN RECEIVED A PERMIT FOR 2004 ON TRAVEL BY INNER WATER WAY OF THE RF FROM THE AZOV TO THE CASPIAN SEA
As journalists have been informed in the Governmental Information Department, the Ministry of Transport and Communications of the RF will give a permit in each separate case with informing the Ministry of Defense of the Russian Federation and conduction of frontier, customs, sanitary, veterinary and other kinds of control in pass points through the State Frontier of the RF opened for the international cargo transportation.
In accordance with the order of the Premier, the Ministry of the Transport and Communications of the RF should "determine an order of passing of mentioned ships by inner waterways of the RF, it was emphasized in the GID.
IN THE END OF APRIL A CONFERENCE ON THE IRANIAN GAS EXPORTATION WILL BE HELD IN TEHRAN
By information of the agency FARS, particularly issues of the construction of pipelines for transportation of the Iranian natural gas to Europe and India and as well realization of projects of the LNG will be considered on the conference.
The Norway Statoil, French Total and the British BP will render a financing support to the conference conduction.
IRAN INTENDS TO ALLOCATE $3.1 BN TO THE FOUNDATION OF THE TANKER FLEET
Besides, Iran plans to construct 12 tankers for transportation of the LNG for $2.04 bn. "We would like that foreign companies take part in realization of this project", - Mr. Mochammed Suri has noted.
N ACCORDANCE OF THE AZERBAIJAN-RUSSIAN BUSINESS-FORUM FOUNDATION OF A GROUP FOR COORDINATION OF REALIZATION OF ACHIEVED AGREEMENTS IS PLANNED
By results of the business-forum the constantly operating organ for coordination of achieved agreements is planned, the Chief of the Azerbaijan-Russian Chamber of the business cooperation Mr. Intigam Guseynov has informed.
"I think that in accordance with the results of the forum, the constantly operating structure, which may be founded as a working group will be created. It will operate under authorities of our Chamber, co-ordinate execution of agreements achieved and remove existing problems", - Mr. I. Guseynov has said.
THE PRESIDENT OF ARMENIA INTENDS TO GIVE A REBUFF TO THE OPPOSITION IN A CASE OF SITUATION WORSENING
"A stability is required for Armenia at the present time; if the opposition decides to exacerbate the situation, the state should give a corresponding rebuff", Kocharyan has declared in his interview to the journalists.
The president has characterized the present situation in the political life of the country as a pressure on the power rendering by "the aggressive political minority". R. Kocharyan has noted especially that he thinks unacceptable that the opposition threats the population of the country and investors by possible destabilization of the situation in Armenia.
$3 BN HAVE BEEN SPENT FOR THE REALIZATION OF THE PROJECT "AZERI"
We shall note that when in 2003 within frameworks of "Stage-1" and "Stage-2" of the project ''Azeri" daily expenses made $6 MM, this year they made $6.5 MM. 9500 officials of local personnel have been attracted for the realization of the project.
By the words of Mr. N. Show, the construction works within "Stage-1" are going strictly according to the schedule. 90% of planned works have been executed. The installing of the base block for offshore platform of "Central Azeri" has begun. The drilling rig has installed just on the platform. As well 48% of works on the constructing the constructions of the platform "West Azeri" and 18% - for "West Azeri".
"Phase-1" of the development of the block "Azeri - Chiraq - Guneshli" was permitted on August 20, 2001. It provides the development of the central part of the field "Azeri" by istalling of production platform "The Central Azeri" there accounted for 48 wells. For operation period of "Phase-1" 193 MM tons of oil would be produced (1.425 bn bbl). At the same time the maximum production level would make 18.7 MM tons annually (375 thou bbl daily). The cost of "Phase-1" makes $3.4 bn.
Installing of two platforms for 48 wells each one in the eastern and western parts of the field have been provided. These platforms are constructed within frameworks of "Phase-2". It was permitted on September 18, 2002. The first oil production from these platforms is planned by II of 2006 and I quarter of 2007 correspondingly and this would increase the production volume more than by 20 MM tons annually (420 thou bbl daily). The cost of "Phase-1" makes $5.2 bn.
The following companies share the contract "Azeri - Chiraq - Guneshli": BP (operator - 34,1367%), SOCAR (10%), Unocal (10,2814%), INPEX (10,0%), Statoil (8,5633%), ExxonMobil
(8.0006%), TPAO (6.7500%), Devon (5,6262%), ITOCHU (3,9205%), Delta Hess (2,7213%).
The American company McDemott, the French Boyegues Offshore and Eiffel, the Italian Saipem, Sweden Emtuga and other companies are contractors of "Phase-1" and "Phase-1".
THE WORKS ON ENLARGING OF THE SANGACHAL TERMINAL WITHIN FRAMEWORKS OF THE PROJECT ACG HAVE BEEN EXECUTED BY 90%
By his words, the construction of two oil reservoirs by a capacity of 125 thou tons (800 thou bbl) of each one have been completed. A height of each reservoir makes 22 meters, the diameter - 100 meters. 6 thou tons of steel sheets imported from France have been required. These oil tanks are the largest ones in Azerbaijan. As well the construction of the reservoir for collection of stratum waters within frameworks of "Stage-1" of full-scaled development of the fields "Azeri - Chiraq - Guneshli" have been completed. And when the oil production within frameworks of "Stage-1" begins, else two similar oil reservoirs will be built. At the present time the Sangachal terminal has 4 similar reservoirs by a total volume of 500 thou bbls.
Mr. N. Imanov has informed that the construction of the head pumping station for the pipeline Baku - Tbilisi - Ceyhan has been executed by 60%. The pumps were delivered to the territory of the terminal and their installation is going now.
In the period of the maximum production the total capacity of the terminal makes about 1 MM bbl of oil and also 1bn cubic feet of gas (28.3 cubic meters of gas) per diem. Since the start of gas production on the field "Shakh-Deniz" up to 900 MM cubic meters of "the blue fuel" will be processed here and delivered to Azerbaijan, Georgia and Turkey. The first deliveries from the field "Shakh-Deniz" should take place in the beginning of 2006.
THE AMERICAN MCDERMOTT CASPIAN CONTRACTORS CONDUCTS THE MODERNIZATION OF THE DIVING SHIP FOR BP-AZERBAIJAN
By the words of the Vice-President of BP-Azerbaijan Mr. Nil Show, the repairs of the ship will prolong up to the beginning of summer and will const $35 MM. Further, it will be used for laying fibro-optical cable by the sea bottom.
We shall remind that the Company McDermott Caspian Contractors executed orders of BP earlier - on modernization of the Azerbaijan Pipe-Laying Ship "Israfil Guseynov" and three subsidiary ships of "Caspmornefteflot". The total of the contract made then $40 MM. These ships were used during construction of pipeline from the field "Chiraq" up to the Sangachal terminal by the bottom of the Caspian Sea.
FOR THREE MONTHS OF 2004 1.26 BN CUBIC METERS OF THE NATURAL GAS WERE PRODUCED IN AZERBAIJAN
As Media-Press has been informed in the State Oil Company of Azerbaijan, offices of the SOCAR produced 1.002 bn cubic meters of gas, the Azerbaijan International Operating Company (AIOC) produced 257.5 MM cubic meters.
On March the gas production made 430.1 MM cubic meters. The share of the SOCAR made 339.2 MM cubic meters, 90.9 MM cubic meters - the AIOC. The joint enterprises made totally 11.6 MM cubic meters.
Azerbaijan needs in up to 10 bn cubic meters of gas annually. In the past year Azerbaijan purchased 4 bn cubic meters of "blue fuel" from the international group of companies "Itera". This year "Gazprom" replaced "Itera" and plans to deliver 2.75 bn cubic meters of the natural gas to Azerbaijan. Recently else one agreement between the SOCAR and the CJC "KazRosGaz" has been signed on deliveries by 4.5 bn cubic meters of gas and these volumes should be delivered since January.
The CJC "KazRosGaz" started the gas deliveries since January of the current year. For January - February Azerbaijan has imported already almost 1 bn cubic meters of gas from Kazakhstan. The SOCAR purchases the Kazakhstan gas for $52 per 1 thou cubic meter. The annual import gas demand of the Azerbaijan market makes about 6 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.
FOR JANUARY - MARCH ABOUT 2.23 MM TONS OF OIL WERE PRODUCED IN AZERBAIJAN
The offices of the SOCAR produced 2.003 MM tons (a growth - 0.7%); the JC produced 227.4 thou tons (a growth - 22.3%).
On March the State Oil Company of Azerbaija produced 763.6 thou tons of oil and this is higher by 22.7 thou tons than it was planned or by 3.1%. The oil and gas producing offices produced 686.9 thou tons of them and the joint enterprises - 76.7 thou tons.
In accordance with the predictions, in 2004 the oil production in Azerbaijan will make 15.45 MM tons and the SOCAR will produce 8.75 MM tons of them and the Azerbaijan International Operating Company (AIOC) will produced 6.7 MM tons. 9.2 MM tons of oil will be delivered for export. 6.7 MM tons will be pumped by the pipeline Baku - Supsa and 2.5 MM tons - by the route Baku - Novorossiisk.
ON MARCH THE MEOO OF THE SOCAR EXPORTED 208 THOU TONS OF OIL AND 103 THOU TONS OF OIL PRODUCTS
As Media-Press has been informed in the SOCAR, the diesel fuel made the most export volume. 44.609 thou tons of it was delivered to the foreign purchasers. 34.853 thou tons of car benzene was realized on the foreign markets, 23.563 thou tons of aircraft kerosene, 593 tons of butane. The furnace fuel on February was not exported. Totally since the beginning of the year the MEEO has delivered 220.94 thou tons of oil products. The Azerbaijan diesel fuel is of the great export demand. Since the beginning of the year 118.613 thou tons of it has been exported, that is more than a half of all oil products export.
On March the SOCAR exported 208.785 thou tons of oil by the pipeline Baku - Novorossiysk. And for three past months of 2004 the volumes of the Azerbaijan oil exportation by this route made 766.185 thou tons.
We shall remind that in the current year the volumes of the pumping by this route will remain almost on the level before and make 2.5 MM tons. The tariff for the Azerbaijan oil pumping by "the Northern Route" makes $15.67 for a ton. (For a comparison: the tariff for the Azerbaijan oil transit by the pipeline Baku - Supsa makes 2.7 for a ton).
The pipeline Baku - Novorosiisk was put into operation on October 25, 1997; annually the SOCAR exports 2.5 MM tons oil by it. In accordance with the intergovernmental agreement between Russia and Azerbaijan, concluded on January, 1999 it is prolonged automatically every year if one of the sides does not inform the second side a half a year before the expiry date of its force stopping. Every five years the sides may change the agreement by a mutual agreeing.
THE DAGESTAN FEDERAL SECURITY SERVICE DEPARTMENT HAS BROUGHT CRIMINAL ACTIONS ON DIVERSIONS ON THE GAS PIPELINE MOZDOK - GAZI-MAGOMED AND OIL PIPELINE BAKU - NOVOROSSIISK
As Media-Press has been informed by the sources in "Rogazexport", gas will be delivered to Azerbaijan today since 17.00 by local time.
By Sunday morning the piece of the main gas pipeline "Mosdok - Kazi-Magomed" broken on Friday by blast, was restored entirely. "Its feeling up by the "blue fuel" is going", - the Vice-General Director of the OJC "Caspiigazprom" Mr. Gasan Abdurakhmanov has said.
The repair brigades of the gas company have replaced the break place on the pipeline in the district Uytash by a piece of pipe by a length of 11 m and a diameter of 1200 m.
Moreover, as Mr. Gasan Abdurakhamanov has informed, a replacement of the exploded piece of the transit oil pipeline "Baku - Novorossiisk" is going. By the conclusion of experts, it also was broken in 15 minutes of damaging the main gas pipeline in the district of Uitash by a blast of cumulative vessel.
The crime action on diversion has been brought for the fact of this blast.
BY A DECISION OF THE GEORGIAN COURT, THE NUANCES OF THE INTERGOVERNMENTAL AGREEMENT ON THE OIL PIPELINE "BAKU - TBILISI - CEYHAN" WILL BE PUBLISHED
As the IA "Novosty - Georgia" has informed, the Ministry of Foreign Affairs of Georgia and Parliament of Georgia were defendants in the court and the Ministry of Environment Protection and Natural Resources, the Georgian International Oil Corporation and as well BTC Co were invited to the hearing of the case.
The intergovernmental agreement and its appendixes were ratified by the parliament of Georgia on May 31, 2000, however these documents up to the present time were not officially published and their content was unknown for a wide public of Georgia.
The past week the Tbilisi District Court did not satisfied the action of the association of "The Green Initiative" against the Ministry of the Environment Protection and Natural Resources, the Ministry of the Foreign Affairs and Parliament of Georgian. This action was associated with the construction of the oil pipeline Baku - Tbilisi - Ceyhan on the territory of Georgia. The Association got recognizing invalid the permit for the construction of oil pipeline on the territory of Georgia, which was given by the Ministry of Environment and Natural Resources of Georgia on November 30, 2002. The Association has demanded conduction of repeated procedure of giving the permit.
