PREPARATION OF TENDER DOCUMENTATION ON THE DEVELOPMENT OF NEW GOLD BEARING FIELDS OF AZERBAIJAN IS CONDUCTED
BAKU.09.08.2004.MEDIA-PRESS:
Azerbaijan plans start of the development of new gold bearing fields and prepares to conduct the relevant tender among the interested companies for these purposes. Now jointly with the Ministry of Economic Development of the Economic Development preparation of tender documentation is conducted, the Minister of Ecology and Natural Resources of Azerbaijan Mr. Gusein Bagirov has said.
BAKU.09.08.2004.MEDIA-PRESS:
The Ministry of the Economic Development of Azerbaijan starts allocation of privatization shares (1 share - 4 cheques) to the citizens of the country, who has not managed to receive them in 1997.
BAKU.09.08.2004.MEDIA-PRESS:
The Arbitration laboratory on check of quality of the food products has been opened in Lyankaran, the south of Azerbaijan. It will operate at the Center of Expertise of consumer goods of the Ministry of Economic Development of Azerbaijan.
BAKU.09.08.2004.MEDIA-PRESS:
The General Secretary of the NATO Mr. Yap de Khoop Skheffer will visit to the countries of Caucasus and Central Asia in the next time.
BAKU.09.08.2004.MEDIA-PRESS:
Expenses for the construction works on the project "Azeri" (within frameworks of the full scale development of the off-shore fields "Azeri - Chiraq - Guneshli" - ACG) made $4 bn since 2001. The Vice-President of the Company BP-Azerbaijan Mr. Nil Show has said about this.
BAKU.09.08.2004.MEDIA-PRESS:
In the project of the state budget of Azerbaijan for 2005 the price for oil at a level of $20 - $22 per barrel is supposed. The Minister of Finance of Azerbaijan Mr. Avaz Alekperov has informed journalists about this.
BAKU.09.08.2004.MEDIA-PRESS:
The issues associated with violation of ecological safety regulations at the development of the offshore fields "Azeri - Chiraq - Guneshli" ("ACG") have not been adjusted still. A total of pretensions to BP-Azerbaijan may grow, however it may not reduce, the Minister of Ecology and Natural Resources of Azerbaijan Mr. Guseyn Bagirov has said.
BAKU.09.08.2004.MEDIA-PRESS:
The affair on paying out of fine for violation of ecological regulations at the development of the field "Garabagl", which has brought to oil pollution is still in the court. The Minister of Ecology and Natural Resources of Azerbaijan Mr. Guseyn Bagirov has informed about this.
BAKU.09.08.2004.MEDIA-PRESS:
Offers on the construction of the oil processing plant by a capacity of 1MM of crude oil per annum have interested the government of Azerbaijan. The first Deputy Premier of the Stavropol Region, the Chief of Administration of the Stavropol Region Mr. Vitaly Mikhaylenko has said this to the correspondent of ITAR-TASS.
BAKU.09.08.2004.MEDIA-PRESS:
The Russian "Gazprom" and "Uzbeknneftegaz" plan sign production sharing agreement on exploration and development of perspective gas fields on the plato Ustyurt o the north-west of the republic for 45 years.
BAKU.09.08.2004.MEDIA-PRESS:
The OPEC intends to increase of quotas for production and export of crude oil by 1.5 MM bbl per diem for prevention of growth for oil energy carriers, the President of the OPEC Mr. Purnomo Yusgiantoro has said.
BAKU.09.08.2004.MEDIA-PRESS:
The explored oil supplies in the world are estimated by 1.15 trln bbl and this may ensure its production during 41 years. And global explored natural gas supplies make 176 MM cubic meters. Statistic review of BP on the world energy resources-2004 contains these data.
BAKU.09.08.2004.MEDIA-PRESS:
Before the next sitting of the Azerbaijan-Iran intergovernmental commission on economic cooperation in the beginning of 2005 the Government of Azernbaijan plans working out its position on the project of the construction of four HEPS in the country in account of credit of the Iranian side.
As Media-Press has informed, two Canadian companies as well as ones from the USA and Russia have announced their intensions in participation in the tender.
By preliminary estimations, supplies of gold opened in Dashkesan make 100 - 150 tons. The results of laboratory investigations conducted by the foreign specialists showed the most containment of gold in rock than researches of the Azerbaijan specialists.
At the present time Azerbaijan has one contract for the development of gold-bearing fields. In accordance with this contract signed on August 21 of 1997 between the state concern "Azergizil" liquidated up to date and R.V. Investment Group Serves LLS (the Azerbaijan side shares 51%, the American side - 49%) the development of 9 gold-bearing fields of Azerbaijan with the preliminary supplies of 400 tons of gold, 2500 tons of 2500 tons of silver and 1.5 tons of copper. The American side is liable to invest about $500 MM to this project, however invested totally $6.8 MM and froze the contract for low world prices for gold. In spite of the present increase of prices, the company has not started works on development of the fields. R.V. Investment Group has not also expressed intension on taking part in the new tender.
THE NEW STAGE OF GIFTING OF PRIVATIAZATION SHARES TO THE POPULATION OF THE COUNTRY STARTS IN AZERBAIJAN
As the agency "Interfax-Azerbaijan" has been informed in the Ministry of the Economic Development, cheques may be received in branches of the United Universal Joint Stock Bank of Azerbaijan: 11 branches are in Baku and rest 56 one are in regions of the country.
Gifting of shares will be carried out up to September 12, 2004 and since September 12 up to November 12 favorable categories of citizens may receive additional cheques. Particularly legatees of persons who died at defense of territorial integrity and independence of Azerbaijan and during events of January 20, 1990; persons injured at defense of territorial integrity of the country, National Heroes, Heroes of the Socialistic Labor, Heroes of the Soviet Union, invalids of the Second World War, war in Afghanistan as well as persons who became invalids during events of January 20, 1990.
We shall remind that the President of Azerbaijan Mr. Ilham Aliyev has prolonged the term of use of privatization cheques up to January 1, 2008 for purposes of their full using in the process of privatization as well as extension of sharing of local and foreign investors in the privatization process.
The privatization checks have been put into operation since January 1997, the number of issued cheques makes 31 MM 044.740 thou ones at a total emission volume of 32 MM cheques.
By the data of the Ministry of Economic Development, for the past period 40% of privatization cheques have been used within frameworks of privatization of the state property.
ARBITRATION LABORATORY ON CHECK OF THE QUALITY OF THE FOOD GOODS HAS OPENED IN LYANKARAN
As Media-Press has been informed in the Ministry of Economic Development, the activities of the laboratory will join the Astara, Jalilabad, Lerik, Masalli, Yardimli regions joined to the Lyankaran Economic zone.
The laboratory is modernly equipped, and this factor will allow checking of food products on their correspondence to internal and international standards.
Earlier such laboratories were opened in Gyanja and Nakhchivan. The frameworks of operation of the Gyanja laboratory join all north-west zone of the republic, which includes the Gazakh, Agstafa, Tovuz, Gedabey, Shamkir, Dashkesan, Khanlar, Samukh and Geranboy regions and the Nakhchivan Republic - all the Nakhchivan Autonomous Republic.
In 2005 else two arbitration laboratories in Guba-Khachmaz and Sheki-Zakatal economic zones will be opened supposedly.
IN THE NEXT TIME THE GENEAL SECRETARY OF NATO WILL VISIT TO CAUCASUS AND CENTRAL ASIA
"In the next time we shall deliver to Caucasus and Central Asia our officials for adjusting mutual interaction and also appoint special envoy on these two regions. And I shall visit to these regions in the next time", - Mr. Y. de Khoop Skheffer has said in interview to the newspaper "Vremya Novostey".
By his words, "relations of the NATO with the countries-partners develop in accordance with the individual interests and wills of partners". Only partners themselves may determine a degree of closeness of their relations with the NATO", - the General Secretary of the NATO has said.
As Mr. Y. de Khoop Skheffer has said, "presence of the NATO on Caucasus and Central Asia is important within frameworks of our actions in Afghanistan". He has emphasized that significant improvement of quality of the cooperation of the NATO and Georgia is observed. "We allocate the main attention to reforms and cooperation in those directions, which will make Georgia more stable, reliable partner not only for the NATO, but also Russia and other neighbors", - Mr. Y. de Khoop Skheffer has said.
$4 BN WERE SPENT FOR REALIZATION OF THE PROJECT "AZERI"
As Media-Press informs with a reference to Mr. N. Show, on the field "Central Azeri" the works were made by 97% and by 31% on the "Eastern Azeri" (against planned 26%), by the field "The Western Azeri" - by 63% (against 61%).
3500 Azerbaijan citizens have been attracted to the works on the project "Azeri".
By the words of Mr. Nil Show, the construction works within frameworks of "Phase-1" of the development of ACG go with advance of the schedule.
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".
IN THE PROJECT OF THE STATE BUDGET OF AZERBAIJAN FOR 2005 THE PRICE FOR OIL AT A LEVEL OF $20 - $22 PER BARREL IS SUPPOSED
The Minister has informed also the journalists that in accordance with the information submitted by all the Ministries, in 2005 a growth of the GDP supposedly would make 14%, incomes would grow by more than 20%, inflation is forecasted by a level of 4%.
We shall note that in the project of the state budget of Azerbaijan for 2004 price for oil was put at a level of $20 per barrel. Such practice when price for oil is put wittingly less than possible average world ones is applied for several years by authors of the state budget. So for last three years average price for oil changed from 23 up to 26 dollars per barrel and it was provided at a level of $19.5 in the budget of Azerbaijan for 2003. It is thought that this allows protecting the budget if prices fall down sharply. And if prices are favorable the budget receives additional means. By the words of Mr. A. Alekperov, accumulation of 276.3 bn manats (4902/$1) became possible owing to high prices for oil.
ISSUES ASSOCIATED WITH BREAKING OF ECOLOGICAL REGULATIONS AT THE DEVELOPMENT OF THE FIELDS "ACG" HAVE NOT BEEN ADJUSTED STILL
Since March of the current year consultations between experts of the Ministry of Ecology and the company BP-Azerbaijan, which is the operator of the project "ACG" are conducted. Then Mr. A. Bagirov declared that the position of BP in this issue is constructive. "We hope that during the next time all problems will be adjusted and bringing action will not be required". Just then the Minister has noted that breakings were made during the development of the fields "ACG" were not purposeful and told that all issues will be adjusted during ten days. More than four months have passed and the sides have not agreed still.
We shall remind that at conduction of the drilling works on the offshore fields cases of throwing out of drilling solutions on synthetic base were registered. Earlier the Ministry of Ecology prepared relevant documents on the company BP-Azerbaijan. Then Mr. G. Bagirov has informed that all the documents were submitted to the company and if the company shows a readiness for paying out fine, the issue will be adjusted. In opposite case the Ministry will apply to the legal institutions. By his words, a total of fine sanctions to BP-Azerbaijan may vary from 500 MM up to 1bn manats (100 - 200 thou dollars). A complete total of fine will be determined after completion of the negotiations.
AFFAIR ON PAYING OUT FINE FOR VIOLATION OF ECOLOGICAL REGULATIONS ON THE FIELD "GARABAGLI" IS STILL IN THE COURT
By his words, a total of the fine put on operating company Salyan Oil Ltd., makes 600 - 700 MM manats (about $140 thou). However, the Minister has noted that possibly up to the time of the beginning of the court it will be find out that a share of requirements of the Ministry has been executed and a total of the fine may be reduced.
We shall remind that earlier the management of Salyan Oil Ltd., working out oil fields "Kyursangi" and "Garabagli" put the question on that there should not be the preserve on the contract area. The Ministry of Ecology Mr. Guseyn Bagirov has said then the company for pretensions of ecologists to its activities considers withdrawing the preserve out of the contract area. By the opinion of the Minister, if the preserve status is liquidated on the contract area oil workers equally should execute all demands of the ecological laws.
Contract on the development of the fields "Kursangi" and "Garabagli" was signed on December of 1998. The Operating Company of Salyan Oil was founded on May 12, 1999. The State Oil Company of Azerbaijan (the SOCAR - 50%) and the Chinese companies CNODC and CNPC (by 25%) are shareholders of it. The total volume of investments has made $115 MM by the present time. The oil production on the fields makes above 1 thou tons per diem. Since 1961 768 wells were drilled on this structure and 260 of them operate.
THE DEPUTY PREMIER OF THE STAVROPOL REGION: AZERBAIJAN HAS BEEN INTERESTED BY OFFER ON OIL PROCESSING PLANT IN THE REGION
"On the meeting in the Cabinet of the Azerbaijan Republic it was recognized to found the intergovernmental working group for the development of the feasibility report and agreed business-plan of the construction of the OPP up to the end of the current year", - Mr. Mikhaylenko has said. By his words, supposedly crude oil for the new enterprise will be delivered from Azerbaijan. "For the agricultural Stavropol Region the realization of the project will allow first of all insuring from possible jumps in prices and interruptions with deliveries of fuel in the harvest period and probably reduction of expenditures on many items of production", - Mr. Mikhailenko has said.
Mr. Mikhaylenko has also touched the other issues discussed in Azerbaijan. Particularly, telling about cooperation in the tourism sphere, the Deputy Premier of the Stavropol Region has noted that offers on attraction of the Azerbaijan tourists to the resorts of the Caucasus Mineral Vodi have caused great interest of businessment of the republic.
"The major number of the officials of the sanatoriums joined to the delegation have concluded agreements with the Azerbaijan tourist companies. The issue of attraction of tourists from the Stavropol region to Baku has been discussed also", - Mr. Mikhailenko has said.
The given direction operated successfully about 15 years ago. The Baku oil workers and their families went readily for relaxation and treatment in the ecologically favorable region of the Caucasus Mineral Vodi. First of all the present reduction of mutual tourist potential was caused by transport problems. Flights from the airport of Mineral Vodi are quite rare and ticket in both ends costs $240 and this price is available to major part of people. The car trips require ensuring of safety in crossing of bordering republics and are full by complexities at passing through frontier and tax check.
"The meetings conducted by the Stavropol delegation and the chief of the Republic Ministry of Youth, Sport and Tourism, officials of the tourist companies of Azerbaijan have showed a possibility of significant enlarging of the tourist flow. Its real increasing up to 2 thou men per annum may give additional earnings by a total of 40 MM to the economy of the Stavropol region", - Mr. Mikhaylenko has said.
Moreover, the Deputy Premier of the Stavropol Region had informed that a network of new Azerbaijan restaurants would be constructed on resorts of the region. By the words of Mr. Mikhaylenko, within frameworks of the achieved agreement in the region not only new enterprises of public food with high level of service and national color will be opened, but also import of products, vegetables and other traditional food goods from Azerbaijan will grow. As and example of successful using of national traditions an motives the work of the Kislovodsk restaurant "Stari Baku" have been mentioned. It is famous by not only its kitchen, but also high service culture.
"GAZPROM" AND "UZBEKNEFTEGAZ" PLAN SIGNING PRODUCTION SHARING AGREEMENT FOR 45 YEARS
Agreement on strategic cooperation in the gas field between "Uzbekneftegazprom" and "Gazprom" was signed. The document provides long-term gas purchases in Uzbekistan up to 2012 with increasing of their annual volume in 2005 up to 10 bn cubic meters and as well as joint realization of projects in the field of gas production on conditions of the production sharing agreement (PSA).
190 oil and gas fields were opened in Uzbekistan. Within this number 88 fields have been developed, 58 have been prepared for the development, 35 have been explored and 9 field have been preserved.
A volume of explored supplies of hydrocarbons on the opened fields makes above 3.6 bn tons of conditional fuel. 60% of the territory of the republic is considered perspective for oil and gas.
THE OPEC INTENDS AGAIN INCREASING OF OIL QUOTAS - NOW BY 1.5 MM BBL PER DIEM
"Such increasing of oil quotas will be reasonable, however, scarcely this will take place earlier than on September of the current year that is the decision on this may be taken on the net 132 Vienna conference of the OPEC, which will take place on September 15", - this is said in its declaration published on Monday by channels of the Vienna Office of the OPEC.
By the words of Mr. Purnomo Yusgiantoro, "To date the OPEC produces oil in volumes exceeding official quotas, however events around oil giant "YKOS" and Iraq prevent to reduction of prices for oil and fuel-libricating materials".
"To date the total oil production in the countries of the OPEC have reached 30 MM bbl per diem at a quota by 26 MM - by other words two MM bbl is delivered from Iraq, which is do not join to the system of quotas of the OPEC, and else two MM bbl - from reproduction of oil by other states-members of the cartel", - the President of the OPEC has said.
In any case, he has empahasized, "on the Vienna conference, in work of which also the observers from Russia, Mexico, Oman, Egypt, Syria and other countries-independent oil exporters will take part, the optimal decision, which will promote to adjusting of oil energy markets and reduction of prices for oil energy carriers".
We shall remind that in the end of July the President of the OPEC has declared that to date the countries joining to the cartel produce oil on the limit of their capacities.
Only the largest members of the cartel - the Saudi Arabia has significant free capacities. As a source in the oil industry of countries of the countries of the Persian Gulf has infomed Dow Jones, the Saudi Arabia will increase oil production on August by 300 000 - 400 000 bbl per diem: from 9.1 MM bbl up to approximately 9.5 MM bbl.
BY ESTIMATE OF BP EXPLORED OIL SUPPLIES MAKE 1.15 TRLN BBL
BP thinks that although in 2003 the price for oil has reached the highest level for last 20 years, this has not brought to global energy resource deficiency. Successes in the exploration and applying of new technologies have allowed increasing of explored oil supplies by 70% in comparison with 1980 year.
Data presented by BP, have showed that as sooner the Chinese GDP grows its energy resources demands has grown by 13.8%. In 2003 41% of growth in he world oil consumption made a share of China.
By the opinion of the Analythical Department of BP Mr. Mikle Smith, the soonest completion of restructuring of industry and improvement of efficiency of using of energy resources is the best method of solving of the problem of energy resources lack, the agency Sinkhua reports.
By the words, in accordance with data of the Ministry of Trade of China, the oil import in China will reach 110 MM tons in China and this is by 21% higher than in the past year. Above one third of oil necessary for China is provided in account of import. In the past year China became the second largest importer and exporter of oil and stands on the second place after the USA.
In the first half a year China paid out $15.159 bn for import deliveries to 61 MM tons of oil and this is less than in the analogous period of the past year by 39.3% and 57.4%, the Agency Sinkhua reports. By opinion of the specialists, continuous growth in oil import and cost will affect negatively on external saldo, industrial production and public economy of Azerbaijan.
The growth in prices for oil has brought to increasing of self-cost in the transport oil-chemical and other fields of the economy of the country. Experts note that for entire construction of "average prosperous" society China should refuse of production requiring large energy consumption production and also develop in any ways energy saving production and make prior development of public transport.
AZERBAIJAN WILL CONSIDER THE PROJECT OF THE CONSTRUCTION OF THE HEATING ELEFTRIC POWER STATION IN ACCOUNT OF THE CREDIT OF IRAN
As "Interfax-Azerbaijan" reminds with a reference to the source in the government of Azerbaijan, during the state visit of the delegation of Iran under a head of the President Khatami o August 5 - 7 official Tehran has expressed its interest in the construction of heating electric power stations by a capacity of 40 MWt in Azerbaijan.
"For the present this is only offer of the Iranian side", - the interlocutor of the agency has said and added that Azerbaijan also intends to determine places for construction of four HEPS, some of which will supposedly situated in the regions of Azerbaijan for improving of energy supplying.
