"AZENERJI" HAS STARTED THE RESEARCHING THE EPTL FROM BAKU UP TO THE INTERNATIONAL AIRPORT BY THE NAME OF MR. G. ALIYEV
BAKU.14.04.2004.MEDIA-PRESS:
The specialist of the JC "Azeenerj" started studying of the route of high voltage electric power transmission lines constructed along car road from the center of Baku up to the international airport named after Mr. G. Aliyev.
BAKU.14.04.2004.MEDIA-PRESS:
The Azerbaijan Company "Khazar Management Systems Ltd." has become an owner of the JC "Garadag Plant of Rubber Admixtures" by results of investment competition.
BAKU.14.04.2004.MEDIA-PRESS:
On May 12 - 14 the 10th Azerbaijan International Exhibition "Food Products, Drinks, Packing and Production Technologies" (INTERFOOD AZERBAIJAN - 2004).
BAKU.14.04.2004.MEDIA-PRESS:
A short visit of the Foreign Minister of Armenia Vardan Oskanyan to Iran has completed. By information of press service of the Armenian MFA, V. Oskanyan held negotiations with the Secretary of the Supreme National Security Council of the IRI Mr. Hasan Rowhani and the Foreign Minister of the country Mr. Kyamal Harrazi in Tehran. By results of the visits the sides signed memorandum on allocation of grant by a total of $1 MM to Armenia within frameworks of rendering support to Armenia.
BAKU.14.04.2004.MEDIA-PRESS:
Experts and analysts of the oil market revise actively predictions of prices for oil in direction of improvement. In the second half of the past year they affirmed that prices for oil in the II quarter of 2004 will drop up to $25 p. bbl and some ones even forecasted $20. Now a rate of $30 p. bbl is met more often.
BAKU.14.04.2004.MEDIA-PRESS:
Turkey and Armenia support the soonest and urgent adjustment of problem of Nagorny Karabakh by peaceful means on a base of the international laws, keeping the state sovereignty of countries, their territorial integrity and inviolability of frontiers. The joint declaration accepted on April 13 in accordance with results of negotiations between the Presidents of Turkey and Azerbaijan Mr. Akhmed Nejet Sezer and Mr. Ilham Aliyev held in Ankara tells this.
BAKU.14.04.2004.MEDIA-PRESS:
On April, 13 in Ankara a number of bilateral agreements were signed by the Presidents of Turkey and Azerbaijan Mr. Akhmet Nejet Sezer and Mr. Ilham Aliyev.
BAKU.14.04.2004.MEDIA-PRESS:
The Presidents of Azerbaijan and Turkey Mr. Ilham Aliyev and Akhmet Nejet Sezer have expressed their satisfaction by a course of the construction of the Main Exporting Pipeline Baku - Tbilisi - Ceyhan (BTC) by which the Caspian oil will be delivered to Europe through the Turkish territory.
BAKU.14.04.2004.MEDIA-PRESS:
In Baku training courses on public security, based on keeping human rights in guarding oil pipeline "Baku - Tbilisi - Ceyhan".
BAKU.14.04.2004.MEDIA-PRESS:
On April the growth of volumes of transit of the Kazakhstan and Turkmken oil through the territory of Azerbaijan by the railway route Baku - Batumi is expected. The Deputy Minister of Transport of the country Mr. Musa Panakhov has said about this.
BAKU.14.04.2004.MEDIA-PRESS:
Since the beginning of 2004 125 MM tons of oil with the gas condensate have been produced in Russia. By operative data for April 12, oil production increased by 12.2 MM tons (10.8%) in comparison with the analogous period of 2003.
BAKU.14.04.2004.MEDIA-PRESS:
The President of Azerbaijan Mr. Ilham Aliyev has approved the agreement on the grant by $600 thou being allocated by the Japanese Fund of the Humanitarian Resources Development for development of the project of electric energetic field of the republic. This project will be realized at assistance of the International Reconstruction and Development Bank (IRDB, the structure of the WB).
BAKU.14.04.2004.MEDIA-PRESS:
In 2003 so called "hidden subsidies" to the energetic sector of Azerbaijan made 1.972 trln manats. The result of the joint analysis held by the Ministries of the economic development, finance, fuel and energy and also the State Statistic Committee.
We shall remind that recently the President of Azerbaijan Mr. Ilham Aliyev instructed the capital authorities to take measures for well-arranging of territories along this road, which by his words forms the first impression of guests of Baku about the city.
As the press service of "Azerenerji" informs, for qualified adjustment of this issue experts of "Azeenerji" have prepared already and presented the situation plan to the Institute "Bakgiprogor", which reflects the present scheme of EPTL in this district. The analogous works were given for the JC "Azerigaz", the companies Barmek-Azerbaijan, managing electric networks, "Bakvodoprovod" and "Bakkanalizacia". After completion of all works the joint plant of construction of the territory will be prepared.
On the next stage "Azeenerji" should prepare the feasibility report of presented technical offers and start their realization after their approval. Routes of 110 and 220 kV EPTL should be changed. The 1st and 2nd Govsani EPTL, 1 - 5 Romani, 1 - 3 Surahani, 1 and 2 EPTL "Gala" are within this number. Supports for this EPTL are close directly to the road and do not allow construction works.
THE GARADAG PLANT OF RUBBER ADMIXTURES CHANGES ITS SPECIALIZATION
As Media-Press has been informed in the Department of Privatization of the State Property of the Ministry of economic development, the winner of the competition must transfer 2.4 bn manats to the state budget and present 100 thou privatization checks for retirement. Moreover, Khazar Management Systems should transfer 2.8 bn manats to accounts of the plant for a start of primary works.
The chief thing in the investment program is changing of profile of the enterprise to issue of glass tare. During two years 54 bn manats will be invested here, and they are to be spent in the first turn for purchase and mounting of equipment for issue of new production, repairs of industrial apartments, construction of engineering communications. 110 persons will be ensured by stable job.
THE 10TH INTERNATIONAL EXHIBITION "INTERFOOD AZERBAIJAN" WILL BE HELD IN BAKU
Food products, food addendums and ingredients, alcohol and soft drinks, tea, coffee, equipment for processing industry, packing technologies, equipment for production of foods and drinks, freezing equipment and equipment for restaurants.
Local companies as well as foreign ones will exhibit their production. In the past year about 60 companies from Germany, Italy, Austria, Israel, Turkey, Iran, Spain, Holland, France, Russia, Ukraine, Azerbaijan, Georgia, Lithuania and Moldova took part in the analogous exhibition.
The British Trade-Exhibition Company ITE Group PLC and its partners in Azerbaijan ITECA Caspian Ltd organize the exhibition at the support of the Ministries of Agriculture and Trade-Industrial Chamber of Azerbaijan.
IRAN HAS ALLOCATED GRANT BY $1 MM TO ARMENIA
Oskanyan as well met with the first Vice-Premier of Iran Mr. Mohammad Reza Aref and the Ministry of Information Mr. Ali Yunesi. The sides discussed an agenda of the Armenian-Iranian relations and as well approaches of both the counties to regional and international events. By a request of the Iranian side the Armenian Ministry described in details the situation around adjustment of the Nagorni Karabakh conflict since the President Elections in Azerbaijan. The Iranian side again has confirmed that the adjustment of the Karabakh conflict is important for not only conflicting sides, but also stability of the region entirely.
Vardan Oskanyan has touched also the relations of Armenia with the neighbor states, particularly the Armenian-Turkish and Armenian-Georgian relations. The sides discussed as well the terms of forthcoming visit of the President of Iran Mr. Mohammad Hatami to Armenia.
THE "THE WALL STREET JOURNAL": THE EXPORT OF THE RUSSIAN OIL GROWS AND CREATES COUNTERBALANCE TO THE OPEC
By the information of the International Energy Agency (IEA), consumption of oil in 2004 will make 80.3 MM bbl per diem, and this is by 1.86 MM bbl higher than rates of 2003. The II quarter of the year is traditional period of fall of oil demands. The present year is not exception. However, if in the past year the fall of consumption made 3.2 MM bbl a year, in the current one - only 2 MM bbl per diem by forecasts of the IEA.
Mainly the USA and China have caused oil demands. The production of benzene in the USA, for example, will reach record level of 8.46 MM bbl per diem this summer by predictions of the IEA. This is by 2.4% higher than in 2003. In China oil consumption in the I quarter of 2004 was by 18% higher than in past year and oil import to the USA has increased by 9% for this period.
The world growth in oil consumption occurs on the background of more rapid growth in prices for oil. It would be logically to suppose, "Izvestiya" write that this cannot go on so long and the market should "win" back either on volumes of consumption or prices. However, neither this nor another occurs. Experts think that the world economy has entered the new stage of the development - with stably high prices for oil.
In this situation, The Wall Street Journal notes, the Russian power industry rapidly grows its capacity for oil exportation, creating more counterbalances to the OPEC. By opinion of Mr. David Faze, the specialist of the IEA, there is a potential for quite rapid continuation of growing of the Russian oil export. "For the next two - three years Russia will become a key element of problems of the OPEC", - he thinks.
As "Izvestiya" writes, the companies try to use any opportunity for oil export including exotic ones. "Rosneft" uses huge tanker laid up on the Russian coast of Arctic as a terminal. Oil from it is delivered to other tankers, which for its dimensions are not able to enter in any Russian port. This project will allow "Rosneft" to deliver daily up to 300 thou bbl of oil. "Transneft" extends terminal near Sant-Petersburg and pipeline system, which would allow pump oil here from the Western Siberia. "YUKOS" contributes means in the development of the railways to China. Totally efforts on "enlarging of pipeline", should bring to a growth of export capacities of Russia from the present 8.5 MM bbl per diem up to 10 MM in 2005 already, by estimations of experts.
Up to recent time the main plans of the Russian oil companies were associated with the construction of private oil pipelines. "YUKOS" actively advanced the idea of the construction of powerful oil pipeline up to China: "LUKoil", "YUKOS", TNK, "Sibneft" and "Surgutneftegaz" intended to allocate 3.5 - 3.4 bn to the pipe from the West Siberia up to Murmansk. However in the first case the company lose to rival - the state Company "Transneft"; the second project also did not made happy the government.
As the Wall Street Jounal believes, though the projects of construction of new pipelines in Russia have delayed for political disagreements, for the past half a year a number of less visible steps on growing the capacities has been made. This will allow Russia to increase export by 15% in the current year, that is by approximately 600 thou per diem and in accordance with predictions in the next years will bring additional incomes.
"Separately these profits are not significant, however large numbers emerge after their summarizing", - Mr. Poll Kollison, the analyst of the oil industry of the Moscow office of the investment company Brunswick UBS has declared.
If Russia intends to grow volume of industry, it will require new large pipelines in current ten years already. If a level of production will grow further, the system will not sustain intension, Mr. Robert Deadly representing the Company BP in the joint company TNK-BP has declared.
On March the Russian experts applied to the government with a request to give them priory access to oil pipelines, which are invested by them; however the new Russian Premier Mr. Mikhail Fradkov has destroyed finally illusions on private main oil pipelines and declared strictly that they will not exist. The Russian officials intend to remain "Transneft" as mean of control for oil industry. Otherwise, just the state takes total responsibility for volume of the Russian oil export: the state will receive oil incomes as it is required.
TURKEY AND AZERBAIJAN SUPPORT URGENT ADJUSTMENT OF THE NAGORNI KARABAKH PROBLEM BY PEACEFUL MEANS
The chiefs of both states share the common point of view that "for the ensuring of peace and stability, strengthening of credit, improvement of relations and cooperation between two countries all states of the region should refuse of conduction of aggressive and hostility policy".
The Turkish and Azerbaijan Presidents have declared with satisfaction that in result of the state negotiations the sides have managed to improve relations between the brother countries up to strategic level. "These relations, - it is mentioned in the document, - will serve a good example for other counties of the region".
Speaking to journalists after negotiations, Mr. Ilham Aliyev has declared that Azerbaijan insists on liberation of its territories occupied Armenia. Only after this Baku will be able to conduct negotiations on the status of Nagorni Karabakh. "Turkey wishes that the problem of Nagorni Karabakh is solved as soon as possible. The issue should be adjusted on a base of the principle of territorial integrity of the states involved into the conflict", - Mr. Aliyev has said, referring to the President of Turkey Mr. Sezer. The President has declared also that the aid of Turkey is very important for Azerbaijan.
THE AZERBAIJAN-TURKISH AGREEMENTS HAVE BEEN SIGNED IN ANKARA
Protocols on cooperation in civil aviation between Azerbaijan and Turkey, cultural sphere, agreements on cooperation in protection of industrial property, cooperation and mutual aid in customs, agreement on long-term economic cooperation between Azerbaijann Republic and Turkish Republic were signed.
The Presidents of both the countries, which spoke after the signing ceremony emphasized significance of the further enlarging and deepening of relations between the brother countries in all fields.
As to the issue of the Nagorni Karabakh problem adjustment on a base of just principles, the President Mr.Akhmed Nejet Sezer has noted that Turkey supports stage-by-stage adjustment of this problem.
In his turn Mr. Ilham Aliyev has emphasized that Azerbaijan further will develop relations with Turkey, a base of which was constructed by the President Mr. Geydar Aliyev. The Azerbaijan leader has said that Azerbaijan has no objections against stage-by-stage adjustment of the Nagorno-Karabakh problem.
At the same time Mr. I. Aliyev has received the Commander of the General Staff of the Armed Forces of Turkey the Army General Mr. Khilimi Ozkek in the residence allocated for him. During the meeting an exchange of opinions on issues of mutual interest took place.
THE PRESIDENTS OF AZERBAIJAN AND TURKEY HAVE EXPRESSED THEIR SATISFACTION BY A COURSE OF REALIZATION OF THE PROJECT OF OIL PIPELINE BAKU - TBILISI - CEYHAN
The leaders of both the countries have signed in the joint declaration on results of the negotiations that "the realization of this project will become the subsidiary source of the progress of economics of the region and ensuring its stability".
The sides have expressed the will that Kazakhstan joins to sharing in realization of this project. The Presidents of both the countries hope that "already this year negotiations between the governments of Azerbaijan and Kazakhstan on this issue complete by signing of the relevant agreement".
IN AZERBAIJAN THE GUARD OF EXPORTING PIPELINES WILL BE TRAINED IN KEEPING HUMAN RIGHTS
As the President of BP-Azerbaijan Mr. David Woodward has informed on opening of the courses, the international nongovernmental organization Equity International has organized training of servicemen of middle group of the Special State Security Service (SSSS); the relevant organization was signed with this organization on February of 2004. The Companies BTC Co (Baku - Tbilisi - Ceyhan) and South Caucasus Pipeline Co (the operator of the construction of the gas pipeline Baku - Tbilisi - Erzurum) finance the program.
The training program accounted for 4 weeks provides studying human rights theory, police skills taking human rights keeping into consideration, international standards of using of force and arms, practical lessons on human rights, foreign experience.
The Executive Director of the Company Equity International Mr. Cees de Rover, the former official of the Dutch police is the manager of the project.
It is supposed that in result of the training the participants of the program will study methods of effective combination of keeping human rights and law-enforcement functions.
At the present time preparations for realization of analogous programs in Georgia and Turkey is conducted - oil- and gas pipelines will pass through territories of these countries.
By the words of the Chief of the SSSS Mr. Vagif Akhundov, such trainings will be conducted for security services engaged in guarding of oil pipeline BTC in Azerbaijan, Georgia and Turkey. In Azerbaijan 14 officials of the SSSS and by two ones from the Ministry of the Ministry of National Security, State Frontier Guard Service, the Ministry of Interior, the Ministry of Defense will take part in the training.
For ensuring security of exporting pipelines on the territory of Azerbaijan 8 regional detachments of the SSSS have been organized, Mr. V. Akhundov has informed. 3 of them are for the northern direction - Sumgayit, Siazan and Hachmaz - for guarding the pipeline Baku - Novorossisk and 5 ones in the western direction - Sangachal (Baku City) and also in towns Ujar, Gajigabul, Shamkir and Agstafa - for guarding the pipeline Baku - Supsa and also the oil pipeline "Baku - Tbilisi - Ceyhan", which is built and future exporting gas pipeline "Baku - Tbilisi - Erzurum".
Administrative buidings for regional departments of the SSSS in the western direcfion have built already, material-technical base have been created and a work on recruiting of personnel is in progress. Similar activities for the regional departments of the northern direction are carrying out now. "If the construction of the administrative buildings is completed up to the end of the current year, in the end of the first quarter of 2005 the work of the SSSS in the northern direction will be adjusted entirely", - Mr. Akhundov has said.
The Chief of SSSS has informed as well that for ensuring security of exporting pipelines 650 - 700 servicemen from the SSSS staff will be attracted in accordance with plans. By his words up to date the SSSS forces have taken the Sangachal terminal under guard by its entire perimeter.
ON APRIL A GROWTH OF TRANSIT OF THE KAZAKHSTAN AND TURKMEN OIL THROUGH AZERBAIJAN IS EXPECTED
By his words, in the first quarter the volume of transportation of transit oil through territory of Azerbaijan make 3 MM tons against 3.1 MM tons in the analogous period of 2003. Such drop by opinion of the Vice-Minister is caused in the first turn by reduction of transit from Turkmenistan, which preferred swap deliveries to Iran. "This system is by 8 - 10% cheaper for oil traders, however its limited capacities will not affect especially on transit volumes through Azerbaijan", - Mr. Panahov has emphasized.
Totally, by results of 2004, the Vice-Minister has noted, a growth in oil transportation by railway is expected at a level of 500 - 700 thou tons in comparison with 11.6 MM tons in 2003.
SINCE THE BEGINNING OF 2004 125 MM TONS OF OIL WITH GAS CONDENSATE AND 190 BN CUBIC METERS OF GAS HAVE BEEN PRODUCED IN RUSSIA
Since 2004 gas production made 190 bn cubic meters of gas - by 6 bn cubic meters higher (3.2%) in comparison with the analogous period of the past year.
THE PRESIDENT OF AZERBAIJAN HAS APPROVED THE AGREEMENT ON THE JAPANESE GRANT FOR DEVELOPMENT OF THE FEASIBILITY REPORT OF THE ENERGETIC PROJECT
As the press-service of the JC "Azenerji", grant will be used for paying out for consulting services of the Dutch "Kema" and the transnational Arabian Holding Dar Al Handasah. The consultants should prepare the feasibility report of the project on modernization of the dispatching system "Azenerji". The main objective is improvement of reliability of the energetic system, reducing of losses of electric energy during its transportation.
The given project of the WB have given the principal agreement to finance the given project and now the Board of Directors of the WB should take an official decision on this issue on this issue.
Supposedly, a total of the credit of the ERDB will make $40 MM and it will be allocated for 15 years, five of which are favorable ones under 3 - 4% rates of interest. Up to date Azerbaijan have received credits from the WB on conditions of the International Development Association, which are softer - a redemption period of the IDA's credits make 35 years with the 10 years favorable period.
The IRDB allocates credits only to the most developed countries amongst the developing countries. Turkey, countries of the Middle East, Latin America and China are within frameworks of their list. By opinion of experts of the WB, Azerbaijan as well becomes one of such countries and may receive credits by line of the IRDB. However taking into account the fact that for the present the republic is poor quite and the GDP per capita is not high, Azerbaijan may receive credits from two structures of the WB. However, if rates of the developments are taken into consideration, in some time Azerbaijan will not need in favorable credits.
IN 2003 "HIDDEN SUBSIDIES" TO THE ENERGETIC SECTOR OF AZERBAIJAN MADE 1.972 TRLN MANATS
The studying of finance activities of two monopolists in this field - JC "Azenerji" and "Azerigaz" has showed that they did not paid out for deliveries of significant volumes of fuel from the State Oil Company of the Azerbaijan Republic entirely. At the same time just these JC were turned out in analogous state - they did not receive even a half of a cost of delivered electric power and gas from consumers.
So in the past year 742.81 bn manats were transferred to accounts of the JC "Azeenerji". In its turn the JC paid out 276.8 bn manats to the State Oil Company of Azerbaijan for fuel delivered and it made 13.2% of cost of fuel. At the same time "Azenerji" delivered electric power by a total 1.849 trln manats and paying for this was at a level 45.81%.
In its turn, the JC "Azerigaz", by the results of 2003 received 8.3 bn cubic meters of natural gas (taking import into account) paid out by the SOCAR. However, the SOCAR transferred totally 8.89 bn manats to accounts of the SOCAR or 5.54% of required total. At the same time 180.56 bn manats (53.4%) were received from gas consumers.
As well the analysis has shown that in comparison with 2002 gatherings for delivered electric power increased by 8.1% and reduced by 7.6% for gas.
