"AZERNERJI" AND SIEMENS HAVE SIGNED THE CONTRACT ON THE PROJECT "REHABILITATION OF TRANSMISSIO SYSTEM OF AZERBAIJAN-2"
BAKU.04.08.2004.MEDIA-PRESS:
The JC "Azerenerji" and the German company Siemens have signed the contract on the project "Rehabilitation of the Transmission System of Azerbaijan-2".
BAKU.04.08.2004.MEDIA-PRESS:
"A capacity of credited side for redemption is the main condition for any international financing institute for allocation of large credit. Moreover, as well a lot of legal, political and economic factors have deciding meaning. The JC "Azerenerji corresponds to all these requirements and may account to all our new credits", - officials of the German bank KWF have declared this during negotiations with the delegation "Azernerji" held in Frankfurt.
BAKU.04.08.2004.MEDIA-PRESS:
The currency reserves of the National Bank of Azerbaijan increased by 9,4% - up to $828.6 MM on January - July of 2004, press release of the NBA reports.
BAKU.04.08.2004.MEDIA-PRESS:
The Organization of the Islamic Conference (OIC) has condemned intension of the separatist regime of Nagorni Karabakh to conduct elections to organs of local self-administration on August 8. This is told in the message of the General Secretary of the OIC Mr. Abdelvakhid Bilkeziz to the Foreign Minister of Azerbaijan Mr. Elmar Mamedyarov.
BAKU.04.08.2004.MEDIA-PRESS:
An effort of Russia to monopolize the controlling of routes of transportation of energy carriers of the Caspian region has ended unfortunately. It is told in the article prepared by the Information Agency United Press International. The authors of this article Mr. Ian Bremmer, the Chief of "The Eurasia Group" and the Chief Scientific Assistant of the Institute of the World Policy Institute and Mr. Nikolas Gvozdev - the Responsible Secretary of the Journal "The National Interest:".
BAKU.04.08.2004.MEDIA-PRESS:
The construction of the oil pipeline Baku - Tbilisi - Ceyha (BTC) in the Borjom Canyon may renew on August 4, the President of BP-Azerbaijan Mr. David Woodward has said.
BAKU.04.08.2004.MEDIA-PRESS:
Since the beginning of the current year the State Oil Company of Azerbaijan and the JC founded by its sharing produced 5.231 MM tons of oil and this is by 2.7% or 139.9 thou tons more than it was forecasted. As Media-Press has been informed in the SOCAR, a share of departments of the SOCAR made 4.697 MM tons (a growth of 0.9%), the JC produced 533.5 thou tons (a growth - 22.4%). Production increased by 0.7% as compared with the analogous period of the past year.
BAKU.04.08.2004.MEDIA-PRESS:
For January - July of the current year 2.896 bn cubic meters of gas were produced and this is by 3% more than it was forecasted.
BAKU.04.08.2004.MEDIA-PRESS:
The Marketing and Economic Operations Office of the State Oil Company of the Azerbaijan Republic (SOCAR) exported 85.017 thou tons of oil products.
BAKU.04.08.2004.MEDIA-PRESS:
On the field "Central Azeri" the support block of the platform for complete gas pressing and water pumping (CGPWP) was launched successfully. As Media-Press has been informed in the company BP-Azerbaijan the CGPWP will be based by the end of September near the support block of the production platform.
BAKU.04.08.2004.MEDIA-PRESS:
The construction of the production platform in the undeveloped part of the field "Neft Dashlari" in the Caspian Sea will be completed in the first quarter of 2005, the agency "Interfax-Azerbaijan" has been informed in the State Oil Company of Azerbaijan (the SOCAR).
BAKU.04.08.2004.MEDIA-PRESS:
The SOCAR has submitted to the Account Chamber of the country offers on participation in the joint with the Account Chamber of Russia check of tariffs of the company "Transneft" on oil pumping by the pipeline Baku - Novorossisk.
BAKU.04.08.2004.MEDIA-PRESS:
"The Georgian Railway" (GR) intends to reduce tariffs on transportation of oil and oil products, the Director of the Road Mr. David Onoprishvili has said. By his words, the intension of reduction of tariffs has appeared in connection with that for the last 7 months a volume of transportation of oil and oil products through Georgia by railway has reduced significantly.
We shall remind that very recently Siemens has become a winner of the relevant tender. As well as Siemens the German departments of the German Companies ABB and Areva have taken part in the tender. And the Austrian VA Tech has not passed the qualification round. After determination of the winner protocols of the tender commission and results of the tender were submitted for consideration of the German bank KFW, which allocated credit by a total of 15.338 MM evro for realization of this project.
As officials of "Azernerji" have informed, the finance offers of Siemens will allow saving of about 2 MM evro. It is planned to deliver the main equipment for carrying out of the program from the plants Siemens. The means saved in such way will be delivered to realization of additional reconstruction measures.
In the next time offers on rational spending of saved means will be prepared jointly with consultants from BEA Consulting and submitted for approval. Expectedly, the main accent will be made on reconstrucion of substations "Absheron", "Khirdalan", "Mashtaga", feeding Baku and Absheron Peninsula. The additional contract will be signed up to the mid of September of 2004.
The program provides technical reequipping of system forming high voltage substations and electric power transmission lines. Moreover, 2,5 MM of his credit will be transferred for introduction of the dispatching system "SKADA".
The main works on the program are planned to execute in 2005. This will allow increasing the reliability of the network and reducing losses at the transportation of electric energy.
We shall note that earlier Siemens realized other projects in Azerbaijan. Particularly, the first stage of program "Transmission System Rehabilitation" financed by the bank KFW, within frameworks of which 22 high voltage substations were reconstructed, the construction of 330 kV line of electric energy transission of the SREPS "Azerbaijan" - Geranboy, enlarging of the substation "AzSREPS".
Moreover, in the past year the construction of 330-kv substation "Agjabedi" has completed. This is the first substation in Azerbaijan of given class, where the Company Siemens has carried construction entirely in accordance with the world standards.
Siemens has also carried out the construction of 110 km substation on the territory of the Sangachal oil terminal, which is the main object of BTC.
THE GERMAN BANK KWF MAY ALLOCATE ELSE ONE CREDIT TO "AZERENERJI"
A decision of allocation of combined credit to one of the perspective energetic projects of Azerbaijan for 20 - 25 years have become a result of negotiations. From them 5 - 7 years of them are favorable and rates of interest are lower than commercial. In the next time finance experts of the sides should agree conditions of agreement. In the mid of autumn more detailed discussion and acceptance of the decision will be held - then the delegation of the German bank arrives in Baku.
Earlier the KFW allocated two credits to the JC "Azenerji". In 1998 the bank allocated the favorable credit by a total of 30 MM German marks. It was allocated for 30 years under 0.75% interest rate per annum. Within frameworks of this project the company Siemens has realized modernization of 17 high voltage substations of the Absheron, Agsu and Siazan regions. The project was completed in 2001.
The second credit by a total of 17.3 MM evro was allocated in the past year for the realization of the program "Rehabilitation of the Transmission System of Azerbaijan".
THE CURRENCY RESERVES OF THE NBA GREW BY 9.4% ON JANUARY - JULY
In accordance with the report, payments on credits received from the IMF made $45 MM for 7 months (taking into account main debt and rates of interests on credits).
"Taking into account payments of the IMF, increased of the currency reserves of the NBA makes $116 MM in the current period" - the document notes.
We shall note, that in accordance with forecasts, currency reserves of the NBA should reach a level of $800 MM only by the end of the year. As the Chief of the NBA Office Mr. Elman Rustamov has informed, exceeding of this rate has been caused by a growth of prices for oil on the world market. "If everything goes further by this schedule, by the end of the year currency reserves of Azerbaijan will make $870 - 900 MM", - the Director of the NBA has emphasized.
THE OIC HAS CONDEMNED PLANS ON CONDUCTION OF ELECTIONS IN SELF-ANNOUNCED NAGORNO-KARABAKH REPUBLIC
As the agency "Interfax-Azerbaijan" was informed in the press-service of the MFA the message of the General Secretary of the OIC notes that efforts of the Armenian side to conduct the municipal elections are "illegal and may negatively affect on the process of adjustment of the Nagorni Karabakh conflict".
Mr. A. Bilkeziz has reminded the position of the OIC on the conflict between Azerbaijan and Armenia - supporting of the territorial integrity of Azerbaijan and condemning of occupation of Nagorni Karabakh and other Azerbaijan territory by Armenia. The OIC supports adjustment of the conflict in a way of negotiations within frameworks of resolutions and decisions of the international organizations - the message tells.
DEAD HEAT IN COMPBAT FOR MANAGING ENEGY CARRIERS OF THE CASPIAN REGION
As it is mentioned in the article, the construction of the pipeline "Baku - Tbilisi - Ceyhan" guarantees that not all Caspian oil will go to the West through the territory of Russia. From the other hand, pumping of the Central Asian gas remains under personal control of the Russian "Gazprom". Moscow is not able prevent to appearance of the USA in the Central Asia and however, similarly will keep the status of "heavy-weight" in this region in the next perspective.
Neither this side nor another will get nothing in result of geopolitical competition in the region, however partnership may bring them great advantages. Taking into account scale of obligations of the USA in the field of security in the entire world, diversification of deliveries of energy carriers is important as never before. Russia will get a lot from the cooperation with the West in exploration of the fields as well as from transportation of energy carriers of the Caspian region. The western technologies and investments have key meaning for realization of plans of Russia on getting maximum incomes in account of high prices for oil.
As authors of the article believe, "idiot and deadlock" thoughts that there is some volume of oil and large states should combat for them is dangerously short-sighted especially in the moment when "hunger" for energy carriers in the world is amplified rapidly and more and more export pipelines are required for deliveries of crude to the market.
The USA, the EU, China, Russia and their neighbors by the Caspian Sea should consider the Caspian zone as united integrated market. They should begin total "Eurasian dialogue" in field of energy carriers, which is able to unite main and external investors - the USA and EU and key players, especially Russia, Azerbaijan and Kazakhstan.
By opinion of the authors economic issues should become one of elements of the dialogue: encouragement of direct investments to fields where they are able to bring the most efficiency. The joint projects with uniting of skills, resources and assets of the western, Asian and Russian corporations are able to put into turn new fields, which remain unused in other case. After creation of interest of all players in success of given venture risk of monopolization of new projects of any sides my be reduced ad all states may receive status of "guarantees" of maintenance of status-quo in Eurasia.
Problems of regional safety should another subject of the dialogue, which are able to create the threat for direct investments. The Chechen rebels try to transfer military actions to the south of Russia, which has vital significance from point of view of transportation of the Caspian energy carriers. A threat of violence from the side of the Islamic extremists makes the authoritarian regimes of the Central Asia to use more dictator methods.
For attraction of investments to the energy projects the states should also strengthen a combat against organized criminality. "Transparent" frontiers, contraband and illegal drugs trade present especial danger for social-political stability necessary for realization of long-term international investment cooperation in the field of energy carriers.
Nevertheless, possibilities for the American-Russian cooperation in the field of safety in the Central Asia are not used for the present. There are military bases in Kirgizstan as well as in the USA and Russia, which should serve to the same goal - prevention to distribution of terrorism in the Central Asia. However, the mechanism of joint actions of the American and Russian troops is not available - they even have not possibility for communicate each other by mobile phones. The realization of offer on creation of the joint American-Russian base within frameworks of partnership "Russia - NATO" in support of which the President of Kirgizstan Askar Akayev would construct a base for practical cooperation, which may be distributed in perspective to both countries, being traditionally under external influence of Russia (for example, Armenia) and states striving to more integration to the north Atlantic structures: Georgia, Uzbekistan and even Azerbaijan.
Potentials of Russia and West in the field of reconnaissance supplement each other. As before Russia had efficient network of contacts in the countries of Eurasia. The first steps on coordination of collection of reconnaissance data in account of combining of the Russian potential in the field of the agent intelligence with technical opportunities of the USA are made already. Russia and the Western countries should found the new organization in the field of safety on a base of the Council "Russia - NATO", which will be engaged in foundation of joint institutes for solving of common tasks connected with safety. The USA and Russia have already demonstrated a capacity to the efficient interaction in the security field particularly promoting to adjustment of conflict between the President of Georgia Mikhail Saakashvili and Aslan Abashidze.
Last time in Russia and Armeina fears that additional incomes of Azerbaijan in account of increasing of production and transportation of hydrocarbons may be used for new escalation of violence in the conflict Nagorno-Karabakh conflict appeared.
The joint operations in Bosnia and Cosovo, where the Russian and NATO's troops have united their efforts for maintenance of peace create precedent, which allows distribute such cooperation to the potential "hot places:, where instability threatening to both the Russian and Western interests may emerge.
There are some regions in the world, where partnership between Russia and West allows get mutual profitable results in the economic, security fields, which would be more significant than in the Central Asia. The successful cooperation in this region would promote to useful partner relations between Russia and West in other fields, for example in construction of new pipelines for transportation of energy carriers from Siberia to the Pacific Ocean region. If capacities associated with such partnership will be missed, this will create stability in the region, which is extremely important from point of view of both "combat with terrorism" and operation of new sources of energy carriers Mr. Ian Bremmer and Nikolas Gvozdev believe.
THE CONSTRUCTION OF THE OIL PIPELINE BAKU - TBILISI - CEYHAN ON THE AREA OF THE BORJOM CANYON MAY RENEW TODAY
"We hope that already on Wednesday the renewal of the construction works in Borjom Canyon may be possible", - Mr. D. Woodward has said, commenting results of consultations of officials of investors of pipeline with the government of Georgia passed in Tbilisi during two days.
The Chief of BP-Azerbaijan has noted that "on the conclusive stage meetings and constructive talks with the President and President of Georgia were held and they have received relevant information". "There are not problems on this stage", - Mr. D. Woodward has said.
As it was informed earlier, by demand of the Ministry of Ecology of Georgia the construction of the pipeline in the Borjom Canyon was stopped for analyzing measures on ensuring security of the construction and further operation of the pipeline.
Particularly, the Ministry of Ecology of Georgia has showed that on this area famous by the mineral sources trenches or laying of pipes and providing them with additional protection barriers are required.
The following companies are shareholders of the project of the construction of the pipeline Baku - Tbilisi - Ceyhan: BP (30,1% sharing), ÃÍÊÀÐ (25%), Unocal (8,9%), Statoil (8,71%), TPAO(6,53%), Eni (5%), Itochu (3,4%), ConocoPhillips (2,5%), Inpex (2,5%), TotalFinaElf (5%) and Amerada Hess (2,36%).
A cost of the construction of the pipeline makes $3.6 bn. Its length makes 1.767 thou km and 443 of them will pass through the territory of Azerbaijan, 248 km - by the territory of Georgia, 1076 km - Turkey. The capacity of the oil pipeline makes 50 MM tons of oil per annum.
FOR JANUARY - JULY THE SOCAR HAS PRODUCED ABOVE 5 MM TONS OF OIL
On July the SOCAR produced 756.5 thou tons of oil and this is more by 15.2 thou tons ore 2.1% than it had been forecasted. Oil production offices produced 667.6 thou tons of this volume and joint companies 78.95 thou tons.
In accordance with forecasts, in 2004 oil production in Azerbaijan will make 15.45 MM tons and 8.75 MM tons of them will make a share of the SOCAR and the Azerbaijan International Operating Company will produce 6.7 MM tons. 9.2 MM tons of oil will be exported. The pipeline Baku - Novorosiisk will pump 2.5 MM tons, the pipeline Baku - Supsa will pump 6.7 MM tons
SINCE THE BEGINNING OF THE YEAR 2.89 BN CUBIC METERS OF GAS WERE PRODUCED
As Media-Press has been informed in the State Oil Company of the Azerbaijan Republic, the departments of this company produced 2.333 bn cubic meters of gas; the Azerbaijan International Operating Company (AIOC) produced 563.2 bn cubic meters. The joint companies produced 75.6 MM cubic meters of gas.
On July the gas production made 374.7 MM cubic meters. 335.2 MM cubic meters made a share of the SOCAR, 39.5 MM cubic meters - a share of the AIOC. The joint companies produced 9.4 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.
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.
ON JULY THE MARKETING AND ECONOMIC OPERATIONS OFFICE OF THE STATE OIL COMPANY OF THE AZERBAIJAN REPUBLIC EXPORTED 209.4 THOU TONS OF OIL AND 85.01 THOU TONS OF OIL PRODUCTS
As Media-Press has been informed in the SOCAR, diesel and car benzene made the major part in the structure of export. 36.11 thou tons and 35.955 thou tons of them were delivered to foreign purchasers. 12.475 thou tons of aircraft kerosene and 476 tons of butane were exported. The furnace fuel was not exported on July. Totally since the beginning of the year the MEOO has exported 503.368 thou tons of oil products. The Azerbaijan diesel fuel is of the greatest demand. Since the beginning of the year 229.712 thou tons of it was exported that is it makes a half of total oil products exported.
On July the SOCAR exported 209.418 tons of oil. And 1.491 MM tons of oil were delivered for seven months.
Me shall remind that in the current year volumes of pumping on this route will remain almost on the former level and make 2.5 MM tons. Tariff on pumping of the Azerbaijan oil on the "northern" route make $15.67 per ton. (For comparison: tariff on transit of the Azerbaijan oil by the pipeline Baku - Supsa makes 2.7 per tons).
The pipeline Baku - Novorossisk was put into operation on October 25, 1997. In accordance with the intergovernmental agreement signed on January 1999 it is automatically prolonged every year if one of the sides does not inform the second one about intension of stopping its denunciation before a half a year up to date of its expiry. Each five years the sides may introduce changes into the document by mutual agreeing.
ON THE FIELD "CENTRAL AZERI" THE SUPPORT BLOCK OF THE PLATFORM FOR COMPLETE PRESSING OF GAS AND WATER PUMPING WAS LAUNCHED
The CPGWP was fully built in Azerbaijan with using of local construction infrastructure. A height of the support block is 143 meters; it will be installed on a depth of water by 128 meters. In he works on installation of the platform crane ship "Azerbaijan" and the transport barge STB-1 will be operate. In offshore operations subsidiary ships and tugboats will take part.
The construction of the support blocks of the platform CPGWP started on the Baku Plant of the Deepwater Bases (BPDB) on February of 2003. BOS-Shelf has appeared the contractor of the company - the joint enterprise with participation of Saipem S.A. (earlier the French Company Bouygues Offshore) and the BPDB. Tens of local subcontractors and 600 Azerbaijan specialists and workers were attracted to the work.
The platform of BPDB on "The Central Azeri" will be connected with the connection platform, and from it gas and water will be delivered from it for pumping to the wells on the field "Azeri" On "Azeri" maximum ten gas-pumping wells, 12 water pumping wells and two wells for drilling slum pumping will be drilled.
The project "The Central Azeri" provides the development of the central part of the field "Azeri". The constructions of "The Central Azeri" include the platform for drilling and production of 48 wells, 30 inches oil pipeline and 28 inches gas pipeline between the "Central Azeri" and the Sangachal Terminal", enlarging of the coast terminal in Sangachal, the platform for completed gas pressing and water pumping.
The following companies are the partners in the project ACG - ÂÐ- 34,1367%, ÃÍÊÀÐ -10%, Unocal -10,2814%, INPEX - 10%, Statoil - 8,5633%, ExxonMobil - (8,0006%, TPAO - 6,75%, Devon - 5,6262%, ITOCHU -3,9205% and Delta Hess - 2,7213%.
IN THE BEGINNING OF 2005 THE SOCAR WILL PUT INTO OPERATION THE NEW PLATFORM ON THE FIELD "NEFT DASHLARI"
By a schedule, 32 wells by a depth of 2400 - 2800 m each one will be drilled. The expected debit makes above 0.9 thou tons and above 100 thou cubic meters of gas per diem. Presently 2.5 thou tons of oil and 130 - 140 thou cubic meter sof gas are produced on the field every day. Thus putting into operation of the new platform will allow increasing of the daily oil production on the field in 1.4 times and gas production - in 1.7 times.
The SOCAR has started the construction of the platform in the end of 90-s, however it was postponed several times for a necessity of construction of other objects. Presently the mentioned project has been included into the list of the first turn ones by the company.
The field "Neft Dashlari" has been revealed in 1949. The production of hydrocarbons here is conducted from several platforms accounted for 1 - 2 wells. For a period of development about 170 MM tons of oil and about 15 bn cubic meters of gas were produced here. Its remainder supplies make 17 MM tons of oil and about 750 MM cubic meters of gas.
AZERBAIJAN WILL CHECK TARIFFS FOR PUMPING OF OIL BY THE PIPELINE BAKU - NOVOROSSIISK
The offers were made with a purpose of more qualified preparation of special inquiry on tariffs of "Transneft" for consideration on the sitting of the AC and taking of resolution on joint actions with the Russian colleagues. Supposedly the sitting of the AC may consider this issue up to September 1.
The decision on organization of the joint control measures was taken on the sitting of the AC on July 17 and results of the working visit of the Russian AC under the head of its Chief Sergey Stepashin were considered. The check of operations on oil pumping to Novorossisk is the initiative of the Russian side.
THE GEORGIAN RAILWAY INTENDS TO REDUCE TARIFFS ON TRANSPORTATION OF OIL AND OIL PRODUCTS
He thinks that if tariff is not reduced, the railway "may appear in extremely critical situation". At the same time he has said that a level of transportation of other cargos has increased and this brings significant incomes to the Georgian railway".
As it has been informed, in the end of 2004 the JC "The Georgian Raiway" has restored tariffs on transportation of large parties of oil and oil products, which operated up to March of 2004. In result at international transportations of crude oil by volumes of no less than 4 MM tons from the station Gardabani (on the frontier with Azerbaijan) up to stations Batum and Poti tariffs reduced from $6 up to $5 per ton; tariffs on transportation of oil products with the same annual volume will reduce from $8 up to $7 per ton. Tariff on transportation of 1 - 4 MM tons of oil per annum makes $8 per ton and $6 - for oil products. Tariff s on transportation of crude oil by a volume of up to 1MM per annum makes $8.93 per ton; oil products - $8.68 per ton.
