IN 2004 KAZAKHSTAN WILL PRODUCE 54 - 55 MM TONS OF OIL AND GAS CONDENSATE
BAKU.07.04.2004.MEDIA-PRESS:
In the current year Kazakhstan will produce 54 - 55 MM tons of oil and gas condensate, the Minister of Energy and Mineral Resources of Kazakhstan Mr. Vladimir Shkolnik has informed. In 2005 the production of oil and condensate makes 60 - 61 MM tons; in 2010 - 90 MM tons and by 2015 - above 150 MM tons taking the fields of the Caspian shelf into account, the Minister has said.
BAKU.07.04.2004.MEDIA-PRESS:
The Ministry of energy and mineral resources of Kazakhstan conducts negotiations with the Russian government on construction of the LNG plant on the field Karachaganak.
BAKU.07.04.2004.MEDIA-PRESS:
The supplies of gas to Armenia begin in 2005 and Iran will receive 3 kWt/h of electric energy in exchange of each cubic meter of gas. The informed source, which wished to stay unknown has told to the agency Mehr about this.
BAKU.07.04.2004.MEDIA-PRESS:
The policy of the OPEC has reduced the global GDP for last two years at least by 0.5%. Analysts of the International Energy Agency have concluded this. The IEA represents interests of large consumers of the hydrocarbon crude and in a first turn of members of Organization of Economic Cooperation and Develoopment.
BAKU.07.04.2004.MEDIA-PRESS:
The Special Envoy of the Administration of the USA on the energy policy in the Caspian Sea Mr. Steven replaces Mr. Rudolf Perina on the post of co-chairman of the Minsk Group of the OSCE on Nagorni Karabakh from the side of the USA. The Ambassador of the USA in Baku Mr. Reno Kharnish has informed about this at the meeting with the Minister of Defense of Azerbaijan Mr. Safar Abiyev.
BAKU.07.04.2004.MEDIA-PRESS:
In Armenia 25 activists of the opposition party "The National Uniting" have been arrested and sentenced to prison for 4 - 25 days.
BAKU.07.04.2004.MEDIA-PRESS:
The Consulate of Azerbaijan opens in Ekaterinburg soon. An agreement on this was achieved during the meeting of the governor of the Sverdlovsk Region of the RF Mr. Eduard Rossel with the President of Azerbaijan Mr. Ilham Aliyev.
BAKU.07.04.2004.MEDIA-PRESS:
Russia will deliver the station of receiving and processing of space information to Azerbaijan. The contract on this has been signed by the sides in accordance with results of meeting of the Russian-Azerbaijan intergovernmental commission on economic cooperation.
BAKU.07.04.2004.MEDIA-PRESS:
"I think that cooperation in the car engineering between our countries is actual enough. Today 12 thou cars of the mark "Gazel" are operated now in Azerbaijan. Such stable demand creates bases for foundation of not only repairs services here, but also mounting production. The Minister of Energy and Industry of Russia Mr. Victor Khristenko has expressed such opinion in the interiew to journalists.
BAKU.07.04.2004.MEDIA-PRESS:
Milli Mejlis (the Parliament of Azerbaijan) has ratified the Moscow declaration ratified between Azerbaijan and Russia during the visit of the Chief of Republic Mr. Ilham Aliyev to Moscow on February of 2004.
BAKU.07.04.2004.MEDIA-PRESS:
Up to date about 2 MM Azerbaijanis have founded their business in Russia. About 4 MM residents of the RF work on enterprises founded by residents of the Azerbaijan origin in Russia. The total tax payments are approximately equal to ones to central state budget of some regions of Russia. The Chief of the Management of the Investing Commercial Bank (ICB) "NIKoil" Mr. Mobil Sharifov has informed about this on the Azerbaijan-Russia Business Forum.
BAKU.07.04.2004.MEDIA-PRESS:
The JC "Azneftekhimmash" has started the development of the project on creation of service bases in the oil regions of Russia. The Chief of the Management of "Azneftekhimmash" Mr. Ali Karakhanov has informed about this on the first Azerbaijan-Russian economic forum, being held in Baku. By his words, this plans are caused by that the Russian oil works use widely an equipment of plants of "Azneftekhimmash".
BAKU.07.04.2004.MEDIA-PRESS:
The Russian Pipe Metal Company (RPMC) has taken liabilities on managing production on the Sumgayit plant "Azerboru" (the former Azerbaijan pipe-rolling plant).
BAKU.07.04.2004.MEDIA-PRESS:
This year prices for energy resources in Azerbaijan will not be increased, the Ministry of Finances of Azerbaijan Mr. Avaz Alekperov has said.
BAKU.07.04.2004.MEDIA-PRESS:
The Ministry of Finance of Azerbaijan is ready for start of negotiations with the international rating agencies on awarding of credit rating to the country, the Ministry of Republic Mr. Avaz Alekperov has said.
By his words in 2003 Kazakhstan produced 51.4 MM tons of oil and gas condensate and this is by 8% more than in 2002. At the same time, Mr. Shkolnik has noted, a share of the state in oil produced in the past year has made approximately 11 MM tons and the rest belongs to investors.
As well the Minister has informed that the development of oil production brings annual increase of investments and in 2015 they will make $4.5bn. And the investments only to the Kashagagan project will make $57.1 bn for 40 years of the development of this field.
KAZAKHSTAN AND RUSSIA CONDUCT DIFFICULT NEGOTIATIONS ON THE CONSTRUCTION OF THE LIQUIDATED NATURAL GAS ON THE FIELD KARACHAGANAK
As the Minister of Energy and Mineral Resources of Kazakhstan Mr Vladimir Shkolnik has informed, the negotiations are conducting "very difficultly: By his information, for a payback of the plant, a price for gas on the frontier of Russia and Kazakhstan should be within frameworks of $49 - 54 per a thousand cub. meters.
The Minister has said: "Russia should share our profitable markets in the West Europe and Ukraine with us and in exchange we should do something too". "The negotiations are being conducted just on this matter", - the Minister has said.
The minister considers that the negotiations with the Russian government have a "good" perspective as since 2010 the market of Europe "will not be balanced". By the information of the Minister, the gas demands in Europe and Russia grows and "our has would be required" (As soon the third stage of the development of Karachaganak starts, annual production of fuel will increase twice up to 12 MM tons of condensate and 25 bn cubic meters of gas).
A cost of the construction of the plant on Karagachanak makes $1.2 bn, payback makes 7 - 8 years. The Italian Agip, the British BG, American ChevronTexaco and Russian NC "LUKoil" join into the consortium.
ARMENIA WILL PAY OUT ELECTRIC ENERGY FOR THE IRANIAN GAS
By the words of the source, during the negotiations of Iran and Armenia on deliveries of gas the sides do not managed to agree anyway. In the end a decision on deliveries of the Iranian gas on a base of mutual profitable agreement, in accordance with which Iran will receive 3 kWt/hour of electric energy in exchange of 1 cubic meter of gas was accepted.
The Iranian gas deliveries will start within a volume of 500 MM cubic meters annually and then will be increased up to 1.5 bn cubic meters. The pipeline will carry out the deliveries of gas; and the issue on the construction of it should be finally adjusted by the end of May.
As the source has noted, the Iranian gas deliveries to Armenia should start in the second half of the next year. The contractor on the construction of the pipeline has not been determined for the present.
THE GLOBAL POLICY OF THE OPEC HAS REDUCED THE GLOBAL GDP BY 0.5%, EXPERTS BELIEVE
As experts of the IEA think, "the decision of the OPEC accepted on March 31 on reduction of quotas on production and oil exportation without accounting high prices for energy carriers may have negative after-effects not only for countries-consumers of oil but also for the states-oil exporters".
By the opinion of experts of the IEA, decisions of the oil cartel, especially the last one, "have divided the OPEC and the IEA by two antagonistic camps in distinction of this time when these international organizations are cooperating closely for prevention of war in Iraq".
MR. STEVEN MANN BECOMES A CO-CHAIRMAN OF THE OSCE GROUP ON NAGORNI KARABAKH FROM THE SIDE OF THE USA
"The USA believe that he will bring a new life into the negotiations", - the American diplomat has said.
Mr. R. Perina was co-chairman of the Minsk Group for two years. As to Mr. Steven Mann, for the last 3 years he as the special representative of White House on policy in the Caspian region, actively was engaged in realization of regional energy projects.
At the meeting with the Minister of Defense of Azerbaijan the Ambassador of Azerbaijan has emphasized that his country intends to get long-term adjustment of the Karabakh problem in a way of negotiations". By the opinion of the Minister of Defense of Azerbaijan, the just adjustment of the conflict may by got in only a single way: "all occupied Azerbaijan territories should be liberated". Mr. Abiyev as well has emphasized that the Armed Forces of Azerbaijan are "always ready for cooperation with the Armed Forces of the USA".
25 OPPOSITIONISTS HAVE BEEN ARRESTED IN ARMENIA
As the official of this party has informed "Interfax", 127 members of the party were delivered to the police departments after demonstration held on Monday by the party in the center of Yerevan. Some of them were liberated, the others were fined and 25 activists were recognized guilty for breaking public order.
By opinion of officials of party, actions of police are just accurately efforts of rendering pressure on the Armenian opposition. Expectedly, the next meeting of the opposition will be held
THE CONSULATE OF AZERBAIJAN WILL APPEAR IN EKATERINBURG
As it has been informed in the Department of the Information Policy of the government of Sverdlovsk Region, opening of Consulate is the important step for the Middle Ural. The official representation will allow keep the life of the Azerbaijanies dwelling in Ural within civilized frameworks. Up to date more than 300 thou Azerbaijanies live in the Ural Region and 45 thou of them - in the Sverdlovsk region.
Mr. I. Aliev and E. Rossel have discussed as well the perspectives and ways of the further development of economic relations. Today the economical cooperation between Ural and Azerbaijan demonstrates a stable dynamics: for the last three years a goods turn-over has been increased in 4.5 times. If in 2001 when the agreement on cooperation was signed it made 7 MM dollars, in 2002 - $22.6 MM and in 2003 - $30.1 MM. Foundation of the Consulate of the Transcaucasus republic in the capital of the Middle Ural will promote to this progress actively, officials of the Information Policy Department of the government of the Sverdlovsk Region have noted.
RUSSIA WILL DELIVER A STATION OF RECEIVING AND PROCESSING OF SPACE INFORMATION TO AZERBAIJAN
As it has been informed on the ceremony of signing, the station manufactured by the Russian scientific-research institute of space instrumental engineering, will allow to conduct works on revealing oil and gas fields, ecological monitoring of regions producing oil and gas, zones of ecological dangers, estimate agricultural areas, forecast a productivity of fields.
As the Minister of Energy and Industry of the RF, co-chairman of the intergovernmental commission on cooperation Mr. Victor Christenko has emphasized, the station will provide the capacity of reception of signal from orbital stations, sounding of the territory of Azerbaijan, its resources in different goals and trends. He thinks that the signing of the contract in the sphere of development of the space is "a good sign of spread of cooperation of two countries to the field of high technologies".
A protocol on cooperation between the Azerbaijan Aerospace Agency and the Federal Space Agency of the RF on space development was signed at the same time.
The importance of development of relations of two countries in the scientific-technical field, fuel-energy complex, transport and communications, humanitarian sphere was signed.
MR. V. KHRISTENKO: RUSSIA IS INTERESTED IN THE PRODUCTION OF CARS "GAZEL" IN AZERBAIJAN
By his words, the mounting production of "Gazel" in Azerbaijan would allow to go out to the markets of the third countries. As well he has emphasized that the cooperation of Russia and Azerbaijan in the field of high technologies including space field would be interesting enough. This allows to conduct sounding the territory of Azerbaijan from the space in the searches of natural resources and as well in interests of meteorology, agriculture and navigation
THE PARLIAMENT OF AZERBAIJAN HAS RATIFIED THE MOSCOW DECLARATION
Besides, the deputies have improved the Azerbaijan-Russian intergovernmental agreement on mutual protection of the private information.
The Moscow declaration provides interaction of two countries in frontier field, delimitation of the frontier, military-technical cooperation strengthening.
As well Azerbaijan and Russia have agreed on conduction of joint operations against person, which represent a danger of sovereignty and territorial integrity of one of the states on the territory of the other state.
As well interaction of two countries on dividing of the bottom of the Caspian Sea has been established in the Declaration.
ABOUT 4 MM PERSONS WORK ON ENTERPRISES FOUNDED IN RUSSIA BY THE AZERBAIJANIS
He has noted that by opinion of experts, total capital and finance flows in Russia, which are controlled by the Azerbaijanis make tens billions dollars. If even a small share of this means will be invested to the economy of Azerbaijan, it would be able to give an impulse for rapid development of the economy of the country and coming out to the world markets and the CIS one. "The Azerbaijanis in Russia are top-managers today, which manage the largest enterprises of the military-industrial, energetic complex, bank and finance sectors", - Mr. M. Sharifov has emphasized.
By his words, today Azerbaijan has a great intellect potential, which should be used. If the profitable geographic and strategic location of the country on the cross of Europe and Asia, huge natural resources, which are all the same to the Russian businessmen for the present in distinction of the western ones, are taken into consideration in addition to this, it would be clear that Azerbaijan needs in the Russian investments. The investors of some countries are more active in Azerbaijan and they work here at a support of their governments in distinction of the government of Russia.
In order of more effective operation of the Russian businessmen in Azerbaijan, by the opinion of Mr. Sharifov, the Russian investors operating here should be liberated from profit and social taxes for two years for the first two years of work as minimum. As well liberation of goods being imported to Azerbaijan from all kinds of export fees. Still in 1997 Azerbaijan has removed similar fees excepting some kinds of crude materials. A zone of frontier trade should be founded in the regions of the Southern Dagestan and northern regions of Azerbaijan. A number of control-permit points on the frontier should be enlarged. The development of the complex program of systems of export credit guaranteeing for the Russian companies joining to the Azerbaijan market is required. As well a problem of redeeming value-added tax at exportation of products to Azerbaijan, the representative of the ICB "NIKoil" as said.
By the words of Mr.Mr. Sharifov, Azerbaijan is gradually refuses of unilateral oil orientation and pays more attention for the infrastructural projects and operation of transport routes and this is a reassuring fact. An order of licensing and registration of business have been simplified, a pension reform is conducted.
Azerbaijan has well international ratings, Mr. Sharifov has noted. This is connected with a very weighed policy of the country on the market of foreign loans and large gold currency reserves of the country in the first turn. So the Azerbaijan companies should activate their participation of local enterprises, transport, industrial, agroindustrial assets, which are oriented to markets of the former soviet republics since period of the USSR. An access to the western markets is closed for major part of goods being produced on these enterprises; so the governments of these countries conduct a policy of limitations in spite of that a quality of production of the Azerbaijan enterprises is not worse than a quality of the same western production in it would be accordingly processed.
In conclusion Mr. M. Sharifov has emphasized that a support of both the government of Azerbaijan and Russian is required for removal of all barriers on a way of the Russian investors. It would be necessary to remove a stereotype of "younger brother", which is still real in certain circles unfortunately.
"AZNEFTEEKHIMMASH" PREPARES THE PROJECT ON FOUNDATION OF SERVICE BASES IN THE OIL REGIONS OF RUSSIA
Mr. A. Karakhanov has noted that within intergovernment agreements, the cooperation with the Russian enterprises with the Russian companies is continued. For example, a work on construction of installation by a lifting capacity of 125 tons for drilling and repairs of oil and gas wells is conducted with the JC "Rusich" and Kurgan plant of wheeled locomotives is conducted. A work on production of mining oil engines is gone with the Perm enterprises. The negotiations with the Russian corporation "Ruselprom" (Vladimir) on organization of the joint production of pumping and compression installation are in a progress.
Mr. A. Karakhanov has emphasized that the JC "Azneftekhimmash" unites four scientific-research institutes and 14 industrial enterprises. "The equipment is produced and in other countries according to our projects. A quality of construction is not worse than the international standard requirements. Really all constructions of land and underground equipment have been made as inventions.
He has noted that for the last years a quality of the equipment of "Azneftekhimmash" has been improved sharply, the Russian standards of ecology and safety have been taken into account. And as evidence five plants of the field have got international quality certificates API and ISO 9001. And two head scientific organizations - the Institute "Azinmash" and the Construction Bureau "Neftemash" have a sertificate of quality management ISO9001. For the last years the JC has not received any reclamations from consumers including oil officials of Russia, Kazakhstan, Ukraine, Vietnam and other countries.
Such successes have been achieved in account of improvement of the production quality management system. Marketing services in both the head office and each enterprise have been founded. A reconstruction of main industrial departments and divisions has been realized. The engineer personnel has been taught to the work in accordance with demands of the international standards. For improvement of a quality of products being issued, the Japanese colleagues have allocated modern technological test equipment. The program of improvement of quality of produced equipment is continued and on the other enterprises of the field.
THE RUSSIAN PIPE METAL COMPANY HAS TAKEN LIABILITIES FOR MANAGING THE PRODUCTION ON THE SUMGAYIT PLANT "AZERBORU"
The new stage in the development of activities of the PMC in Azerbaijan is associated with sharing in investment projects in the country and carrying out of direct investments to industrial objects of Azerbaijan. The General Director of the Pipe Metal Company Mr. Dmitrii Pumpyanski has informed about this speaking on the first economic Azerbaijan-Economic Russian forum.
On April 6 the Memorandum on cooperation between the Pipe Metal Company and the British Company "Targol Investments Ltd."(real owner of the plant) was signed. And it accordance with this document the PMC takes labilities on managing the production on the Sumgayit plant "Azerboru". The main objective of the PMC is restoration of the production potential of the enterprise and organization of issue of the modern pipe production in accordance with demands of the world standards. During 1.5 - 2 years the PMC plans to allocate $30 MM to the given project. In result of execution of the investment program the capacities of the enterprise will be increased up to 150 - 200 thou tons of pipes without welds annually. Volumes of deliveries of pipe production of the PMC to Azerbaijan have made about 4.0 thou tons annually for 2 months of the current year.
As the President of Targol Investment Ltd. Jone Khart has noted, a question is about the cooperation with the company PMC in the field of production of the tubes. "The PMC has a strategic partner of Targol Investment because up to date the British Company is not a brand in the field of the production of pipes. Now a company, which has got reputation on market, has a great importance and the PMC is such one. We shall use the technology of the Russian company and its marketing network.
J. Khart as well has informed that the first half a year of execution of the investment program $5.5 MM were allocated to "Azerboru". And totally - already more than $5 MM have been allocated. This year the volume of investments will be more significantly. The question is about the construction of the Steel-Welding Complex, as the old furnaces cannot be restored.
On the plant, by the words Mr. J. Hart, drilling tubes and tubes for common use with a diameter of 48 - 168 mm will be produced on the plant. Moreover, the company should receive certificates of API and the work in this trend will be done at the same time with the start of the production. "Then we have an opportunity of selling pipes to foreign companies operating in Azerbaijan. But in accordance with contracts concluded with these oil companies, they are liable to prefer the local producer at keeping two conditions. The first one: the local production will correspond to world standards; the second condition: a price of the local product should not exceed a price of rivals more than by 10%.
THIS YEAR PRICES FOR ENERGY CARRIERS IN AZERBAIJAN WILL NOT BE EXCEEDED
By his words, two versions of adjustment of this issue have been discussed jointly with officials of the IMF. The first one is increase of prices and then their revision each quarter depending on prices on the world markets. The second version is gradual increase of prices for energy carriers. "Personally I support gradual increase of prices", - the Minister has said.
We shall remind that still on February the Minister of Economic Development of Republic Mr. Farkhad Aliyev has noted that in Azerbaijan the inner prices for energetic carriers (without taking into account expenses for their transportation) do not contrast with world ones. Such declaration has been made in response on the demand of the IMF to increase the inner prices for energy carriers up to the world ones. Mr. F. Aliyev has emphasized also that the government will make all possible to prevent to negative affections on population of the country.
We shall remind that the IMF has postponed the term of execution of liabilities of increase of inner prices for energy carriers up to peace ones. Earlier it was planned to make this in the beginning of 2004.
AZERBAIJAN IS READY FOR A START OF NEGOTIATIONS WITH THE INTERNATIONAL RATING AGENCIES ON RATING AWARDING
The international rating agency Fitch Ratings have conducted estimated a credit rating of Azerbaijan for the last 2 years. The agreement with them was expired in 2003. The Ministry of Finance of Azerbaijan considers exceeded new finance requirements of Fitch for its services. The Ministry has sent the project of the agreement to the agency and is waiting a response now. Expectedly, the new agreement is accounted for 3 years.
By the words, of Mr. A. Alekperov, a readiness for negotiations with other agencies does not mean a refusal of Fitch's services as for the present Azerbaijan has not received a response of the agency. He has noted that Fitch has increased its finance requirements in 5 - 6 times comparatively with past years. "The MF is ready for increasing payments for service, however by insignificant total", - he has said.
Talking about requirements to the agencies, he has said that an agency should be famous and authorized in the world. "Besides, his finance offer should be acceptable for the MFA", - Mr A. Alekperov has said.
As it has been informed, on September 2003 Fitch Ratings has confirmed a long-term rating of Azerbaijan at a levl "BB" and short-term "B". Forecasts of both the ratings have remained at a level "positive".
