Media Press

THE AZERBAIJAN ISR MOTORS HAS BECOME THE NEW OWNER OF THE JC "NEFTCHALA IOD-BROM"

BAKU.30.08.2004.MEDIA-PRESS: The Azerbaijan company ISR Motors has won the new investment competition on purchasing of the JC "Neftchala Iod-Brom".
As Media-Press has been informed in the Ministry of the Economic Development of Azerbaijan, ISR Motors is obliged to transfer 1.3 bn manats (4904 manats/$4) to the state budget during 30 days after signing the purchase-sale agreement or submit 65 thou privatization cheques. For conduction of primary works on the investment program it should transfer 294 MM manats to accounts of the JC.
ISR Motors will invest 9.8 bn manats (about $2 MM) to the development of the company during 18 months. Investing will be carried out in three stages. Means will be directed for restoration and purchasing of the new equipment, introduction of modern technologies, reconstruction of the industrial apartments. Paying out of debts on salaries is one of the conditions put for the new owner of the company.

IN MAKHACHKALA NEGOTIATIONS OF THE MOTOR TRANSPORT EMPLOYEES OF RUSSIA AND AZERBAIJAN HAVE BEEN HELD

BAKU.30.08.2004.MEDIA-PRESS: In Makhachkala the meeting of motor transport employees of Russia and Azerbaijan has been held. The Deputy Director of the Department of the State Policy in the field of road economy and car transport, the Ministry of Transport of the RF Mr. Kirill Bestsenko, the Minister of Transport, the road economy and TV communications systems of Dagestan Mr. Askerhan Ajiev has represented the Russian side and the Chief of the International Transportation Department and the Deputy Chief of the Department of Transport Inspection "Avtonagliyatservis" of the Ministry of Transport Mr. Etibar Aliyev and Bidayat Aslanov, the President of the International Association motor activities of Azerbaijan ("Asmab Azerbaijan") Mr. Tofiq Nurullayev has said.
As "Dagestanskaya Pravda" informs, the question was about about unadjusted issues, non-consciousness of legislative and juridical acts of both the countries, which prevent to international transportation including transit transport and passenger motor ones. There are many barriers. For example, the same cargo weighs 20 tons in the Azerbaijan side and 23 or 24 tons in the Russian one. Though mutual check up of correctness of weight economy in the both sides of the frontier and it costs nerves, time and means. A part of mutual pretensions was removed during discussions, and a protocol on other ones was made and signed and the sides will operate in accordance with it.

THE ASIAN DEVELOPMENT BANK (ADB) MAY ALLOCATE FAVORABLE CREDITS TO AZERBAIJAN BY A TOTAL OF ALMOST $80 MM

BAKU.30.08.2004.MEDIA-PRESS: The Asian Development Bank may allocate favorable credits by a total of $39.1 MM per annum, it is said in the information published on the site of the bank.
"The Board of Directors of the bank has taken the relevant decision. The priority at crediting will be given two sectors - agricultural, social infrastructure and also transport sector", - it is noted in the information.
Particularly, the ADB plans financing of works associated with reconstruction of the Samur-Absheron Irrigation Channel in 2006.
Azerbaijan joined to the ADB in 1999; for this period the bank has allocated grants by a total of $5.5 MM to the country for realization of 12 projects. Besides, on July of the current year the ADB has allocated a credit of $22 to Azerbaijan for conduction of shore strengthening within frameworks of fight against mudflows.

ON SEPTEMBER THE 10TH AZERBAIJAN INTERNATIONAL EXHIBITION "HEALTH-2004" WILL BE HELD IN BAKU

BAKU.30.08.2004.MEDIA-PRESS: On September 14 - 17 the 10th Azerbaijan International Exhibition "Health-2004" will be held in Baku. The British ITE Group PLC and its exclusive partner in the South Caucasus Iteca Caspian Ltd. are organizers of it. Expectedly, companies from Azerbaijan, Georgia, Russia, the Central-Asian Republics, Turkey, Iran, Palestine, India, Greece, Germany, Hungary, Belarus, and Poland will exhibit their production. Supposedly, more 12 thou persons will visit to the exhibition.
The companies-participants will submit their achievements and developments in the field of pharmacology, medical and dental equipment, using of electronics and optics for treatment and diagnostic as well as hygienic, cosmetic means and food additions.
We shall note that volume of the pharmaceutics market of Azerbaijan makes about $120 MM. Production from the Eastern Europe, USA, Russia, Turkey and India makes the major part here.
During realization of the second stage of privatization in Azerbaijan more 300 medical institutions will be privatized and this will bring to increasing of growth of the medical equipment.

LE MONDE (FRANCE): WHY HAS OIL RETURNED TO THE CENTER OF GEO POLICY?

BAKU.30.08.2004.MEDIA-PRESS: "We have left completely from the times when the British magazine "Economist" which is famous for quality of its analyses, forecasted fall down of prices for oil up to $5 per bbl. This was on March of 1999 and analysts considered that a cost of bbl, which was twice higher, might reduce only. The opposite thing has occurred and in such proportions!
Today as the newspaper writes, a cost of barrel gradually approaches to $50 and nobody dares to forecast when and how will this growth stop. There are many reasons for this.
At the same time this is effect of impact of market laws in conditions of industrial production growth and noneconomic factors - war in Iraq, growing instability of deliveries from the Middle East, where 75% of explored oil supplies are situated, political-finance attack on the Russian giant YUKOS, a share of which makes 20% of oil export from Russia and 2% of its oil production, uncertainness on deliveries from Venezuela in spite of favorable results of referendum for the President Mr. Ugo Chaves.
These factors seem single, however the most important crude in the world unite them. Just they promote to appearance of the new oil order from Africa up to the Caspian region, which depends from interests of Washington and Moscow, which presently compete on territories, which for a long time remained frozen by "cold war". Moreover, perspectives of exhausting of supplies of resources after forecasted fall down in its production in 2010 - 2015 increases a probability of saving of high prices for oil.
All this explains the growth of prices on oil markets and difficulties with their reduction. Appeal to the OPEC and countries-oil producers, which do not join to it to open valves more, will scarcely will be fruitful significantly in the middle term perspective. Capacities of countries of the OPEC operate by 96% and it would not be easy for it to deliver additionally 2 MM bbl per diem as it is required. This figure accords to the world oil demands expected in 2004, which is the most intensive for last 15 years.
China is in the base of this in the base of this energy explosion; by data of the International Energy Agency demands of this country should grow up to 11 MM from 5.5 bbl of oil per diem by 2025. 40% of increasing of the world demands makes a share of this country and other developing Asian countries will join soon to this list, particularly India meanwhile on June of this year the Great Britain has begun importation of oil - at the first time for 10 years. And this a sign of changing times.
For constantly growing oil demands and restoration of the world economic growth, which has brought to increasing of its consumption for last two years by 3.5 MM bbl per diem approximately, by 2025 120 MM bbl per diem - by 50% more than today should be produced. However, where would be they got? Theoretially, Iraq, which occupies the second place in the world on explored supplies (15 bn tons) after the Saudi Arabia (36 bn tons) should play a key role in increasing of offer. However unfavorable situation into the country prevents to this. There are the same doubts on the Arabian Persian zone. Consequently, new sources of supplying should be searched.
However the Caspian region, where explored oil supplies of Azerbaijan, Kazakhstan and Turkmenistan make about 30 bn bbl in accordance with different researches, that is approximately the same as fields in the Northern Sea contain Mr. Lourens Ruzekas from "Cambridge Energy Research Associates" writes in the magazine "Sosetal".
The construction of the oil pipeline Baku - Tbilisi - Ceyhan for oil transportation from Azerbaijan to the Turkish port to the Mediterranean Sea through Georgia is a hidden motive of conflict of the American and Russian interests in the region which is under constant attention of Iran, Turkey and China. Among all these countries Russia pretends on the role, which corresponds to its potential of not only oil country (the export makes approximately 8 MM bbl per diem, as of the Saudi Arabia), but also gas one as it has 45% of the world supplies as compared with 36% in the Middle East. Two these factors explain the Putin's restoration of control of energy policy of the country, which were managed by oligarchs suspended in treachery of the Russian interests. Or of the former empire", - the Paris "Monde" writes.

TWO OFFSHORE PLATFORMS WILL BE INSTALLED WITHIN FRAMEWORKS OF THE PROJECT "PHASE-1" OF THE FULL-SCALE DEVELOPMENT OF ACG

BAKU.30.08.2004.MEDIA-PRESS: Within frameworks of the realization of the project "Phase-1" of full-scale development of the fields "Azeri-Chiraq-Guneshli" (ACG) in the Caspian Sea two offshore platforms will be installed. It provides drilling of wells, engineering-technical support systems and dwelling blocks; another one - for oil production, head-casing gas and gas pumping.
As the Manager of the company BP-Azerbaijan (the operator of the development of ACG) Mrs. Rebecca Midleton has said, the drilling platform will be accounted for drilling of 48 wells and 13 of them will be water pumping. The advanced drilling of wells by means of floating semisubmersible drilling rig (SDR) "Dede Gorgud" will be conducted. Besides of operation wells on two areas from the place of installing of ther platform water pumping wells will be drilled. This will allow water pumping to the layers for maintenance of pressure at once after oil production starts. A capacity of production platform will make 316 thou bbl of oil per diem and 350 MM cubic feet of gas.
The distinguishing feature of "Phase-1" is that the casing-head gas will not be pumped to wells for maintenance of stratum pressure as it is done at oil production from the platform "Chiraq-1". Gas will be delivered to the Sangachal oil terminal in full volume. Within frameworks of "Phase-1" on the Sangachal terminal two supplementary istallations on oil reception will be installed.
The project "Phase-1" provides the development of deep-water part of the field "Guneshli". It is supposed to start the work here from ACG by 2009 - 2010 up to 1MM bbl per diem. By estimations, oil supplies in the deepwater part of "Guneshli" make 1 bn bbl. Besides, "Phase-3" provides production of the potential oil supplies in the western part of area "Chiraq", however to dated it is impossible to product them for limited number of wells.
The contract on the development of the fields "Azeri-Chiraq-Guneshli" was signed on September 20, 1994. Shareholders of the project are the following companies: the British BP - 34.1367%, the American Unocal - 10.2814%, ExxonMobil -8,0006%, Devon Energy -5,6262%, Amerada Hess -1,0413%, SOCAR -10%, INРEX -10%, Itochu - 3,9205%, the Norwegian Statoil -8,5633%, the Turkish TPAO -6,75% and the Saudi Delta Oil -1,68%.

COMPLETE VERSION OF ENVIRONMENTAL IMPACT ASSESMENT WILL BE APPROVED IN THE END OF OCTOBER

BAKU.30.08.2004.MEDIA-PRESS: A complete version of environmental impact assessment on the project "Phase-3" of the full-scale development of the fields "Azeri-Chiraq-Guneshli" (ACG) will be submitted to the Ministry of Ecology and Natural Resources of Azerbaijan in the end of September. And approval of the document is expected in the end of October. The manager of the company BP-Azerbaijan (the operator of the ACG) Mrs. Rebecca Middleton has informed about this.
By her words, drilling of wells within frameworks of "Phase-3" will affect in any way on environment. The drilling solutions on the synthetic base and slum will be pumped to the stratum or transported to a shore.
As the project "Phase-3" is a continuation of the projects "Phase-1" and "Phase-3", many operations in them are repeated. The major part of kinds of environmental impact will be same. And methods developed earlier will be applied for their minimizing.
The project "Phase-1" provides the development of the deepwater part of the field "Guneshli". The production here is supposed in the middle of 2008. The realization of the project will allow increasing of oil production in the ACG by 2009 - 2010 up to 1 MM bbl per diem. By estimations, oil supplies in the deepwater part of "Guneshli" are estimated by 1 bn bbl. Besides, "Phase-3" provides production of the potential oil supplies in the western part of area "Chiraq", however to dated it is impossible to product them for limited number of wells.
The contract on the development of the fields "Azeri-Chiraq-Guneshli" was signed on September 20, 1994. Shareholders of the project are the following companies: the British BP - 34.1367%, the American Unocal - 10.2814%, ExxonMobil -8,0006%, Devon Energy -5,6262%, Amerada Hess -1,0413%, SOCAR -10%, INРEX -10%, Itochu - 3,9205%, the Norwegian Statoil -8,5633%, the Turkish TPAO -6,75% and the Saudi Delta Oil -1,68%.

THE STATE OIL COMPANY OF THE AZERBAIJAN REPUBLIC HAS PROLONGED THE CONTRACT ON AIRCRAFT KEROSENE DELIVERIES TO THE FRENCH TOTAL

BAKU.30.08.2004.MEDIA-PRESS: The State Oil Company of Azerbaijan (SOCAR) has prolonged the contract on deliveries of the aircraft kerosene to the French Company Total up to the end of 2004, the agency "Interfax-Azerbaijan" has been informed in the SOCAR.
"The contract with Total has been concluded by 50 thou tons. Then a decision on prolongation of the contract up to the end of the year with new volumes was taken. Moreover, Total is ready for reception of any volumes of kerosene" from us - the official of the SOCAR has said.
The officials of the SOCAR have noted that by the present 78 thou tons of aircraft kerosene were exported.
The OPP "Azerneftyag" as well the OPP "Azernftyanajag" enters in the structure of the State Oil Company of Azerbaijan. "Azerneftyag" is specialized on the issue of the lubricating oils and other sorts of the oil products (kerosene, mazut, aircraft fuel and others). The second plant is specialized on the issue of light fractions (car benzene, aircraft kerosene and others).
The both enterprises may process 22 MM tons of oil for a year, however in the last years they works hardly by a third part of the capacity.
On January - July of 2004 the SOCAR exported 81.7 thou tons of aircraft kerosene at production of 367.2 thou tons.

THE TRANSIT OF THE KAZAKHSTAN AND TURKMEN OIL THROUGH AZERBAIJAN AND GEORGIA WILL REACH THE PAST YEAR LEVEL SINCE SEPTEMBER

BAKU.30.08.2004.MEDIA-PRESS: The oil transit from Kazakhstan and Turkmenistan through Azerbaijan to the Black Sea ports of Georgia will reach the past year level since September, the agency "Interfax-Azerbaijan" has been informed in the AzRW Department.
"We expect that since September of the current year transit of oil and oil products from Kazakhstan and Turkmenistan through our country will increase and as minimum the current delay from the past year rates will be removed", - the official of the AzRW has said.
By his words, for seven months of the current year transportation of the Central Asian oil and oil products via the AzRW made 6 MM tons and this is less by 500 thou tons than the analogous rate of the past year.
The interlocutor of the agency has explained the expected growth of transit volumes by availability of large amount of future contracts with a term of realization in the autumn-winter period.
Reduction of the transportation of hydrocarbons from Kazakhstan and Turkmenistan since beginning of the yea has been associated with aggravation of political situation in Georgia in the spring of 2004, in result of which the main transshipment point in the Black Sea - the Batum oil terminal was shut down two times. In its turn this has influenced negatively on activity of motor traders, which redelivered their transit cargos roundabout the mentioned route - through ports of Russia and Iran.
However, officials of the AzRW note that in the summer period gradual restoration of former volumes of the transit by the South-Caucasus transport corridor is observed.

MR. YUSUFOV HAS BEEN APPOINTED THE SPECIAL ENVOY OF MR. PUTIN ON THE FUEL-ENERGY COMPLEX

BAKU.30.08.2004.MEDIA-PRESS: The press service of Kremlin has announced appointment the former Minister of Energy Mr. Igor Yusufov the special Envoy of the President of the RF on the international energy cooperation. "Often bilateral negotiations between Presidents are devoted to energy by 50%, the FEC and prices for oil make us to re-calculate all budget, - the source has explained the logics of establishing of the new post. So a decision on paying attention to the energy negotiations within the international frameworks was taken", - Mr. Yusufov will also administrate issues of the international cooperation in energetic field and the FEC via the MFA; he has received a rank of Special Envoy, the newspaper "Vedomosti" informs.
Interaction on problems of the FEC with the countries of the CIS, negotiations with the relevant international organizations especially with the OPEC as well as attraction of the foreign investors, the source in the Russian MFA.
Mr. Yusufov will administrate also issue of dividing of the Caspian Sea, which were within frameworks of competence of the Deputy Foreign Ministry Mr. Victor Kalyuzni (earlier the Minister of Fuel and Energy). Now, on "most likely will be appointed the Ambassador in Latvia", - the source in the MFA tells. The decision on foundation of the new post in the Administration of the President Mr. Kalyuzni has called "correct", however he has refused commenting the appointment of Mr. Yusufov and own perspectives.
Mentions of foreign investors about Mr. Yusufov are especially loyal. "He is certainly normal man", - the official of the American oil company operating in Russia says. During our joint work with Mr. Yusufov, positive working relations has been formed between us", - the Public Relations Director of Russia Mr. Maxim Shub says also.
Introducing the new post the President emphasizes that the international cooperation in the field of the FEC becomes prior, the former Chef of the Economic Department of the Administration of the President Mr. Anton Danilov-Danilyan. By his opinion Mr. Yusufov will co-ordinate the state policy in TEC, including the work of the Ministry of Industry and Energy. Mr. Danilov-Danilyan forecasts that relations of Mr. Yusufov with the Minister Victor Khristenko will be quite enough.

JAPAN INTENDS TO CONTINUE WORK ON THE IRANIAN FIELD "AZADEGAN" IN SPITE OF THE USA DEMANDS

BAKU.30.08.2004.MEDIA-PRESS: In spite of the US demands Japan will continue the work on the Iranian oil field "Azadegan". As Iran.ru informs, the Deputy Foreign Minister of Japan, has declared this and noted that Tokyo prefers the national interests directed to keeping of the energy safety of the country in the first turn. "In the USA the state policy is constructed in accordance with relations with Iran meanwhile the Japanese policy is based on keeping the national interests", - the Deputy Foreign Minister has said.

THE OPEC WILL INCREASE DAILY PRODUCTION ELSE BY 1 MM BBL UP TO THE END OF THE YEAR

BAKU.30.08.2004.MEDIA-PRESS: The countries-members of the OPEC in the soonest several months will increase production of "the black gold" else by 1 MM bbl per diem. The President of the cartel Mr.Purnomo Yusgiantoro has said.
"The OPEC makes all possible for keeping of order and stability on the market and wants establishing of prices, which would be acceptable for producers and consumers".
In the written application of Mr. Yusgiantoro it is noted also that the group continues keeping of free capacities of oil production at a level 1 - 1.5 MM bbl of oil per diem for possible urgent production growth. The internet-site "Vslukh.Ru" informs.
"Moreover, the OPEC plans intensify production rates else by 1 MM bbl per diem up to the end of this year and the beginning of 2005 as and response to increasing of oil demand in the net time", - the President of cartel has said.
"Besides, there are plans on extension of production capacities, which may be realized. However, these capacities may be put into operation only in 18 months", - he has said.

THE GDP OF AZERBAIJAN EXCEEDED 22 TRLN MANATS ($4.54 BN) FOR SEVEN MONTHS

BAKU.30.08.2004.MEDIA-PRESS: The volume of the GDP of Azerbaijan for seven months of 2004 has made 22.308 trln manats, what is more by 9.4% than for the analogous period of the past year (4904 manats/$1).
The production of the GDP per capita has made 2.7 MM manats ($550.5) and grew by 8.5% in comparison with the analogous period of the past year.
A share of industry in the GDP has made 37.7%; agriculture - 7.7%; the construction - 13.3%; the transport - 7.3%; communications - 2.7%; trade and services sphere - 8.4%. For seven months 58.7% of the GDP were produced in production field; 34.2% - in the sector of services; 7.1% - taxes and export of goods and services.
By results of the past year the GDP of Azerbaijan made 35.1 trln manats and 4.3 MM manats per capita per annum. In 2004 as it is expected, the GDP will make 37.3 trln. Manats. A share of the industry in the production of the GDP will make 12.493 trln. Manats (a growth - 8.6%), agriculture - 5.08 trln manats (8.3%); the construction - 5.75 trln. Manats (30.7%), trade - 2.89 trln manats (9.8%), transport - 2.795 trln manats (9.7%), communications - 756.3 bn manats (12.7%) and field of services - 4.862 trln manats (6.2%).
In accordance with the State Program of the social-economic development of regions of Azerbaijan for 2004 - 2008 volume of the GDP will make 76.3 trln by the end of this period and increase in 2.3 time as compared to 2003. The production of the GDP per capita will make $1.578 thou; a share of the private sector in the GDP will make up to 85%.

ATAHOLDING JOINTLY WITH THE GREEK STAR PASTA PLANS CONSTRUCTION OF THE MACAROON FABRIQUE IN KHACHMAZ

BAKU.30.08.2004.MEDIA-PRESS: The investment AtaHolding plans jointly with the Greek Company Star Pasta putting into operation of the new enterprise on macaroon production in Khachmaz up to the end of 2004 (in 190 km from Baku), the Chief of the Observer Council of the Holding Mr. Akhmet Erentok has informed. By his words, for the present it has not been established, as shares between the sides will be distributed, "however in the primary stage a volume of investments to the project will make $1 MM". "Particularly, the Greek part plans deliveries of the equipment by a total of 250 thou evro", - Mr A. Erentok has said.
He has noted that in the first stage the enterprise suppose production of four kinds of macaroon products by a total weight of 7 - 8 thou tons per annum.
AtaHolding founded in 1993 includes a number of companies operating in the field of the industrial production, consulting, bank sector, the construction complex and leasing.
5 juridical persons are shareholders of AtaHolding. The British investment group The Financial Management Holding UK, which intents participate actively in investment project of the Azerbaijan holding, which are under a schedule in the next years, shares 50%.

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