AZERBAIJAN WORKS OUT ITS EXPORT STRATEGY
BAKU.04.02.2004.MEDIA-PRESS: "In Azerbaijan the development of the state export strategy has begun and it would provide multiple oil transportation", - the President of the SOCAR Mr. Natiq Aliyev has informed the journalists on the press conference.
BAKU.04.02.2004.MEDIA-PRESS: The Russian Oil Company "LUKoil" accounts to come to mutual understanding with the SOCAR on the project "Zikh-Govsani", the President of "LUKoil" Mr. Vagit Alekpeov has informed the journalists.
BAKU.04.02.2004.MEDIA-PRESS: LUKoil and the Italian Agip sell their joint enterprise "LUKAgip", which share in the projects on the production of hydrocarbons in Azerbaijan and Egypt. It is planned to totalize the competition in the end of February.
BAKU.04.02.2004.MEDIA-PRESS: In 2003 the foreign trade turnover of Azerbaijan increased by 36% in comparison with rates of 2002 - from $3.833 bn up to $5.218 bn.
BAKU.04.02.2004.MEDIA-PRESS: The Azerbaijan Railway (ARW) plans to increase the cargo activities up to 18 MM tons in 2004 and this exceeds the real rate of 2003 by 25%.
BAKU.04.02.2004.MEDIA-PRESS: Two opposition fractions in the Parliament of Armenia have demanded the retirement of the President of Armenia.
BAKU.04.02.2004.MEDIA-PRESS: The President of Azerbaijan Mr. Ilham Aliyev has declared that there is an excellent political base for the development of the economic relations between Azerbaijan and Russia.
BAKU.04.2004.MEDIA-PRESS: The President of Azerbaijan Mr. Ilham Aliyev thinks that talks about joining of the country to the NATO are premature.
BAKU.04.02.2004.MEDIA-PRESS: The official visit of the President of Azerbaijan Mr Ilham Aliyev to Moscow will promote to the extension of bilateral cooperation. The Chief of the International Affairs Committee of the Federation Council Mr. Michail Margelov has said in interview to "Interfax".
BAKU.04.02.2004.MEDIA-PRESS: Visit of the President of Azerbaijan to Moscow this week will give a new stimulus to the Russian-Azerbaijan relations, the President of the oil Company "LUKoil " Mr. Vagit Alekperov has declared.
BAKU.02.02.2004.MEDIA-PRESS: Yesterday the agreement package on allocation of finance means for the construction of the pipeline Baku - Tbilisi - Ceyhan at a participation of officials of Azerbaijan, Georgia and Turkey was signed in Baku. Totally they make 27 agreements by a total of $2.95 bn. And if redeeming of credits, oil purchases by a volume of 10 MM bbl for filling up the pipeline are taken into account, financing of other works the total cost of the project would made $3.6 bn.
BAKU.05.02.2004.MEDIA-PRESS: $1.4 bn has been spent for the construction of the Main Exporting Pipeline Baku - Tbilisi - Ceyhan. The daily expenses on the project make $4 MM, moreover contracts on a total of 2.6 bn have been signed. The Director of BTC Co. Mr. M. Townsend has informed about this on the press conference.
BAKU.04.02.2004.MEDIA-PRESS: Azerbaijan and Kazakhstan would be able to come to the common intergovernmental agreement on the Kazakhstan oil through the pipeline Baku - Tbilisi - Ceyhan (BTC) during a month, the Executive Director of the National Company "KazMunayGaz" Mr. Sabir Isimbekov has said.
BAKU.04.02.2004.MEDIA-PRESS: The losses of Russia from the putting into operation of the pipeline Baku - Tbilisi - Ceyhan (BTC) would be minimal. The market experts have expressed such opinion; they think that the realization of given project should not affect significantly on the Russian "oil field".
We should note that at the present time two oil pipelines Baku - Novorossiysk and Baku - Supsa transport the Azerbaijan oil. Tariff of pumping of one ton by these routes makes $15.67 an $2.7 correspondingly.
Speaking about the oil exportation by the pipeline Baku - Novorossiysk Mr. Natiq Aliyev, has noted that Azerbaijan does not intend to revise the pumping volume in this direction. This year 2.5 MM tons of oil will be exported by it and request for the same volume has been made for 2005.
LUKOIL ACCOUNTS TO COME TO MUTUAL UNDERSTANDING WITH THE SOCAR ON THE PROJECT "ZIKH-GOVSANI" DURING A MONTH
"Our last meetings in Azerbaijan make hopes on completion of negotiations on optimization of given project in the next time reasonable", - he has said.
By the words of Mr. Alekperov, "LUKoil" made the expertise of the ecological problems and provided the SOCAR by the relevant materials as well the package of suggestions on the project "Zikh-Govsani". It is offered to increase the oil percentage in them in order that the enterprise could to export it for increasing the economics of the project. Moreover, the offers include also the possibility of enlarging of the share of "LUKoil" from 50% up to 80%. "We hope that in the next month we find the understanding on correcting of this project", - he has said.
"If the SOCAR accepts the correction and the Azerbaijan authorities approve it, our company would be able to realize this project in short period in conditions of the strict keeping of the ecological regulations", - Mr. V. Alekperov has emphasized. "The project documentation, searches and ecological expertise are ready. We are ready for beginning of the realization of this project within frameworks of a month", - he has added.
"Expenses for existing ecological problems are significant for the project in more degree than for the company. The project is not large: it is a pioneer one. The company has been engaged in its realization with a single purpose - to found the operation company on the territory of Azerbaijan with the next development of the large field, which we hope to discover on the structure D-222", - Mr. V. Alekperov has said.
As it had been informed, putting into force of the contract on the project "Zikh-Govsani" was repeatedly delayed for unsolved ecological problems. The investments by a total of about $100 MM are required for the realization of the ecological program on the block and this total makes approximately a half cost of the total project.
The contract on the oil fileds "Zikh-Govsani" was signed on January 9, 2001. "LUKoil" and the SOCAR have by 50% in the project and the supposed volume of investments would make $250 MM.
These fields are situated in the southern area of the Absheron Peninsula, the contract area makes 128 sq.km including the rehabilitation one - 52 sq.km. The remainder oil supplies are estimated by 20 MM tons, the life of the agreement makes 25 MM.
THE PRESIDENT OF "LUKOIL" THE SHAREHODERS OF THE PROJECT "SHAKH-DENIZ" TOTAL AND STATOIL SHOW THE INTEREST TO THE LUKAGIP
By the information of the Russian newspaper "Vedomosty", the competition on sales of LUKAgip was announced in the end of the past year since the Italian side had decided to leave the project. The President of LUKoil Mr. Vagit Alekperov had informed the journalists that it had been planned to totalize the competition in the end of January, however, by the request of the Italian side this date was postponed. By the words of Mr V. Alekperov, the JC has been offered entirely for sale. At the same time, he has said, when the competition results are totalized, LUKoil would be able to purchase the partner's share if consider this purposeful. By the words of the President of "LUKoil" the shareholders of the project "Shakh-Deniz" the French Total and Norwegian Statoil display their interest to LUKAgip, however there have not been any suggestions.
The officials of two companies mentioned by Aleskerov, and as well BP refused of commentaries on a possibility of purchasing the Russian-Italian JC and said that they not discuss the market talks.
IN 2003 THE FOREIGN TRADE TURNOVER OF AZERBAIJAN INCREASED BY 36%
As the agency "Interfax - Azerbaijan" has been informed in the State Customs Department (SCD) of Azerbaijan, the volume of the export grew by 19.62% in comparison with 2002 and made $2.592 bn, the import - by 57.79% up to $2.626.
Totally, in 2003 the negative foreign trade turnover balance was got by a total of $34 MM, while in 2002 the balance was positive and made $502.6 MM. By opinion of the experts of the SCD, the reduction of rates is associated with the significant increase of the production and equipment import in 2003 within frameworks of the construction of the MEP Baku - Tbilisi - Ceyhan.
Azerbaijan was realizing trade operations with 129 countries during the past year. Goods imported from Russia (14.6%), the Great Britain (10.9%), Turkey (7.4%), Turkmenistan (7.2%), Germany (6.5%), France (5.9%), Kazakhstan (5.3%), the USA (5.1%), Ukraine (4.5%), Japan (3.9%) made the chief share within frameworks of the import.
The exportation was carrying out mainly to Italy (51.9%, Francef (8.1%), Russia (5.7%), Israel (5.3%), Georgia (4.3%), Turkey (4.1%), Greece (2.8%), the USA (2.5%), Croatia (2.36%), Iran (1.9%).
The government of Azerbaijan predicts the increasing of the foreign trade up to $6 bn 156.8 MM by 2008.
THIS YEAR THE AZERBAIJAN RAILWAY PLANS TO INCREASE THE CARGO ACTIVITIES BY A QUARTER
As "Interfax-Azerbaijan" has been informed in the ARW Office, the increase would be provided mainly in account of increasing of oil and oil products transit. By the words of the ARW official, this might be achieved in the past year, however problems on unloading of oil tanks in the Georgian port Batumy prevented to this.
"About 3500 wagons were staying idle on February - March of 2003 and the significant delay was formed on all route from Baku up to Batumi for this. In its turn this negatively affected on the activities of the Caspian Shipping Company, the tankers of which carry out the transportation of the Kazakhstan an Turkmen oil in Azerbaijan", - the official of the Railway Office has said.
By his words, at the present time there are not problems on serving cargos being delivered to Poti. "The given factor as well as the growth in a number of requests for oil transportation by this route by cargo owners in Turkmenistan and Kazakhstan allows the forecasting the significant growth in cargo transit.
In 2003 the AzRW transported 14.407 MM tons of cargos and this is by 8.9% more than in 2002 and exceeded the annual prediction by 8.3%.
THE PART OF THE ARMENIAN OPPOSITION DEMANDS THE PRESIDENT RETIREMENT
"Governing of present regime is a serious danger for the national and state interests of Armenia", - the joint statement of two opposition fractions "Justice" and "National Union" declares.
By the opinion of authors, "the present regime failed seriously both in the internal policy and foreign one". Particularly, growing in prices for bread, foods, drugs, gas, electric power and drinking water are regarded as failures.
"The positions of the Armenian side in the adjustment of the Nagorny Karabakh conflict became maximally weak", - it is stated in the document.
The opposition fractions have declared that they intend closely cooperate with each other and get jointly the change of the governing regime in Armenia.
After rejection of the offer of opposition on referendum holding on believe to authorities by the Armenian Parliament, the officials of both the opposition fractions declared about their intensions of boycotting the work in the Chamber.
However these opposition fractions have less than the third part of places in the Parliament and are not able to affect on the process of laws and decisions acceptance.
Two third of the Armenian Parliament are controlled by the coalition of three pro-president parties, which have formed the present Armenian government.
THE PRESIDENT OF AZERBAIJAN: THERE IS THE SOLID POLITICAL BASE FOR THE DEVELOPMENT OF ECONOMIC RELATIONS BETWEEN BAKU AND MOSCOW
"There is an excellent base for the successful development of the economical relations - mutual political understanding between the leaders of Russia and Azerbaijan. The level of the relations is highest. The Presidents Mr. V. Putin and Mr. G. Aliyev had put a base for this. An I myself will do all possible for the development of achieved.", - Mr Ilham Aliyev has said in the interview published in the today issue of the periodical "Izvestiya".
"I have met repeatedly with Vladimir Vladimirovich Putin and there is total mutual understanding on bilateral relations and regional problems", - he has added.
The Azerbaijan Ilham Aliyev has recognized that in the period before 2002 there had been many problems seemed unsolvable: in power industry, pipeline policy, the Caspian Sea, etc.
By now the situation has changed cardinally. "We adjusted everything. Now there are not problems between Russia and Azerbaijan. Absolutely. There are not disputable issues with different understanding. Russia is the strategic partner for us. The position of Geydar Aliyev was similar and I keep the same position", - Mr.Ilham Aliyev has emphasized.
Talking about the activities of the Russian companies in Azerbaijan, he has noted that they share in many energetic projects in Azerbaijan. "Today the Azerbaijan oil is transported through Russia. Gas is delivered to Azerbaijan from Russia. The goods turnover increases every year in large rates and I am sure it will increase further. Every year the economies of both the countries become more solid and this creates a good potential for increasing the goods turnover", - the President has said.
In response to the question about the geo-strategic situation in the Caspian Region, Mr. I. Aliyev has supported the demilitarization of the Caspian Sea. "We support entire demilitarization of the Caspian Sea and call our old good neighbors to be support our position. The Caspian Sea should become the zone of peace", - he has said.
"Any arms competition in the Caspian Sea will not get good results in the end, - Mr. I. Aliyev has noted. Furthermore, the totally comprehensive agreement on the Caspian Sea bordering has not been signed still. Moreover, there are bilateral agreements between Azerbaijan and Russia, Azerbaijan and Kazakhstan, Kazakhstan and Russia. And we we'd like to hope that on a base of this positive experience our neighbors will join to the position announced in these agreements ".
IT IS UNTIMELY TO TALK ABOUT JOINING OF AZERBAIJAN TO THE NATO, THE PRESIDENT OF AZERBAIJAN MR. I. ALIYEV DECLARES
"I do not want to discuss the matter of our joining to the Alliance now, it is the issue of the future, and it is untimely to talk about this for the present. Before such decision is accepted, everything should be seriously weighed and thought about", - Mr. I. Aliyev has said in the interview published in the today issue of the periodical "Izvestiya".
Speaking about the Nagorni-Karabakh conflict the President of Azerbaijan supported its peaceful adjustment. "We must return our territories and peacefully adjust the "Nagorni Karabakh conflict", - Mr. I. Aliyev has declared. At the same time he emphasized that Azerbaijan intends hardly to keep its territorial integrity. "This may not be a matter of any trades, negotiations and talks", - the Azerbaijan leader has said.
He spoke in support of more active position of the co-chairmen of the Minsk Group of the OSCE on Nagorny Karabakh - Russia, the USA and France on the background of this. "The main thing is that the Minsk Group should not be transformed into the monitoring group. There are such observers, which only watch and do not take any decisions. We'd like that the Minsk Group take the constructive decisions", - Mr. I. Aliev has said.
THE VISIT OF THE PRESIDENT OF AZERBAIJAN TO MOSCOW WILL PROMOTE TO STRENGTHENING OF RELATIONS BETWEEN MOSCOW AND BAKU, THE RUSSIAN SENATOR BELIEVES
"The authorities of Russia and Azerbaijan should solve the similar problems on modernization of their states and I'd like to hope that the visit of Mr. Ilham Aliyev will promote to movement in a parallel ways for solving the same objective", - Mr. M. Margelov has said.
"We should to construct our relations democratically and ensure the solid base of them in order they remain stable independently from persons of leaders in Baku and Moscow, which would are at the head of the countries whenever", Mr. Mr. Margelov has emphasized.
"Taking into account the geographical and strategic state of Azerbaijan, this country should have the same smooth relations both with Russia and the USA, Turkey and other regional states. An Moscow does not intent to oppose to development of these relations", the senator has said.
By his words, the Russian policy makers know Mr. Ilham Aliyev long time ago and first of all they know him as the Chief of the Azerbaijan Delegation in the PAEC, where the cooperation with the present President of Azerrbaijan was successful.
THE VISIT OF THE PRESIDENT OF AZERBAIJAN TO RUSSIA WILL OPEN NEW OPPORTUNITIES FOR COOPERATION IN A NUMBER OF ECONOMIC FIELDS, THE PRESIDENT OF "LUKOIL" BELIEVES
This visit gives "the opportunity for opening the new page for new initiatives not only in the oil and gas sector, but also in the oil and chemical sector and machinery", - he has said. The funds of the Russian companies would help Azerbaijan to restore the former capacities in this fields and come out to the external markets including the RF, Mr. V. Alekperov thinks.
He has informed that the management of the company intends to take part in the meetings of Mr. I. Aliyev in Moscow. "We have prepared a number of issues for discussion", - he has said, and noted at the same time that "LUKoil has not tax problems in Azerbaijan".
"I have heard that separate opinions of the Director of the State Tax Service had taken place, however neither the Government of Azerbaijan nor the State Oil Company of Azerbaijan Republic (SOCAR) confirm this. We have not received official letters on this matter",- Mr. V. Alekperov has said.
By his words, it had paid out all required taxes to the Azerbaijan Treasury. "We have no debts to the State Tax Service including on the project "Azeri - Chiraq - Guneshli", - Mr. V. Alekperov has said.
The President of "LUKoil" has emphasized that the Company intends further to take part in the Azerbaijan oil and gas projects. "We shall not take part in the projects, which are not associated with the oil and gas production, their processing and sales. If the interesting projects are on the territory of Azerbaijan, we are ready to consider them and invest to them", - the President of NC has said. At the same time he has noted that the Company do not plan to enlarge its sharing on the Azerbaijan market. "We have stable retail. We believe that place, which is occupied by us is sufficient to attend this business on the territory of the country".
THE INTERNATIONAL FINANCING ORGANIZATIONS HAVE ALLOCATED CREDITS BY A TOTAL OF $2.6 BN FOR THE CONSTRUCTION OF THE MEP BAKU - TBILISI - CEYHAN
BTC provided for the Caspian oil transportation to the world markets through the Mediterranean port Ceyhan with a capacity of 50 MM tons of oil annually has been estimated in $2.95 bn and is financed by 70% by the international credit organizations.
In interview to the agency Reuter, the Executive Director of the pipeline company BTC Co. (Baku - Tbilisi - Ceyhan) Mr. Michael Townsend called the agreement on financing BTC "one of the largest finance packages in the private sector". He has said on the press conference that credits, which are allocated by the financing organizations for the construction of BTC would be transferred since March - April of this year. Totally, the credits would be transferred in a way of 4 - 5 tranches. Moreover, the total of the first one would be the largest and make above $1 bn. This means would be provided for redeeming the debts to the companies, which hitherto have been financed the construction of the MEP in account of own funds.
The conditions of the allocation of credit were not published, however the President of BP - Azerbaijan Mr. David Woodward has noted that the average rate on the credits makes Libor + 3.5% annual rates. By his words, the credits would be allocated for a period of 10 - 12 years. The process of redeeming starts only since the end of 2006 and completes in 2015.
"Eight export-credit agencies will allocate credits for the project: the IFC, ERDB and as well the bank syndicate uniting 15 private banks", - it was noted in BP-Azerbaijan.
Four groups of borrowers will allocate credits for the project. The internaional financing organizaions join in th first group - the ERDB and IFC, which would allocate totally $500 MM (each organization would allocate $125 MM and appear as organizers of syndicated credit by the same total).
The expot-credit agencies, which would provide guarantees to banks for financing the deliveries of materials and equipment from the USA, Great Britain, Japan, Germany, Italy and France. The syndicate of 15 banks, which allocate $1.2 bn joins in the third group.The international bank syndicate on financing BTC is headed by the Japanese Mizuho, the French Societed Generale, Holland ABN Amro and American Citicorp. As well Banca Intesa, BNP Paribas, Credit Agricole Indosuez, Dexia, Hyppovereinbank, ING, KBC, Natexis Banque Popularie, San Paolo IMI, West LB and Royal Bank of Scotland have been included in it. Each bank has allocated approximately $68 MM.
The large companies-shareholders of the project - BP, Statoil, Total and ConocoPhillips would join in the fourth group of borrowers and allocate totally up to $800 MM.
The length of the MEP makes 1767 km and 443 of them pass through the territory of Azerbaijan, 248 km - through the territory of Georgia, 1076 km - through the territory of Turkey. The capacity of the pipeline makes 50 MM tons of oil in a year.
The construction works started on April 2003 and will be completed in the fourth quarter of 2004. The Azerbaijan oil export from the port Ceyhan (Turkey) is planned by the second quarter 2005.
BP (30,1%), the SOCAR (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%) are the shareholders of the project.
$1.4 BN HAS BEEN SPENT FOR THE CONSTRUCTION OF THE EXPORT PIPELINE BAKU - TBILISI - CEYHAN
By the words of the President of BP - Azerbaijan Mr. D. Woodward, for the present the project has been executed by 56%. In all three countries: Azerbaijan, Georgia and Turkey 760 km of the construction route have been prepared and 580 km of pipes have been laid and are ready for welding. At the present time the construction works are being conducted in all three countries.
Above 12 thou persons are being employed in the construction of the pipeline within its total length.
The length of the MEP makes 1767 km and 443 of them pass through the territory of Azerbaijan, 248 km - through the territory of Georgia, 1076 km - through the territory of Turkey. The capacity of the pipeline makes 50 MM tons of oil in a year.
The construction works started on April 2003 and will be completed in the fourth quarter of 2004. The Azerbaijan oil export from the port Ceyhan (Turkey) is planned by the second quarter 2005.
BP (30,1%), the SOCAR (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%) are the shareholders of the project.
THE AGREEMENT ON THE KAZAKHSTAN OIL TRANSIT BY BTC PROBABLY WOULD BE READY IN A MONTH
By his words, the positively directed work of the experts from two countries is conducted and is "on the stage of agreeing of some juridical aspects and commercial conditions of joining of foreign companies operating in Kazakhstan to this project".
Mr. Isimbekov has expressed his sureness in that "in the next time the sides would start to work already joint document".
Multiple operations of oil pipelines for transit of own oil is one main principles of the Kazakhstan side in its work at the agreement. The same approach is actual also for a right of using the pipelines Baku - Novorossiysk and Baku - Supsa in the next future.
The Executive Director of "KazMunayGaz" has informed also that the company "Teniz Service" has been founded in Kazakhstan and the foundation of "the onshore structure" that is technical conditions for the sea oil transportation is its main objective.
Although each country initially prepared its own version of intergovernmental agreement on joining of Kazakhstan to the project BTC, by the repeatedly expressed opinions of the sides, " generally their fundamental principles are the same".
In his turn, the Ambassador of Kazakhstan in Azerbaijan Mr. Andar Shukutov, speaking at the ceremony of signing of the agreement on credit allocation for the MEP construction, has noted that "export capacities are priory for Kazakhstan, which has oil supplies by 4bn tons and 2 gas supplies by 2 trln cubic meters of gas at the present time".
By the words of the diplomat, in 2003 the oil production in Kazakhstan exceeded 50 MM tons. By 2010 the production would be increased up to 100 MM and in 2015 - up to 150 MM tons. So Kazakhstan has interest in this route and this is shown by 15% sharing of four foreign companies in BTC Co, which operate in Kazakhstan.
THE LOSSES OF RUSSIA FROM PUTTING INTO OPERATION OF THE OIL PIPELINE BAKU - TBILISI - CEYHAN WOULD BE MINIMAL, THE RUSSIAN EXPERTS THINK
The officials of the state company "Transneft", which controls for all oil pipelines in Russia, have reminded that BTC has been oriented for the Azerbaijan oil and its transit through Russia makes only 2.5 MM tons a year now. "It is slightly more than 1% from the total pumping volume", - the interlocutor of ITAR - TASS has said. By his words, "this is not too large loss, furthermore literally in few weeks "Transneft" enlarge the capacity of the Baltic Pipeline System (BPS) from 30 up to 42 MM tons of oil annually and since that the pumping volumes of fuel should grow in account of other sources".
Media-Press: We should remind that few days ago, the Vice-President of "Transneft" Mr. Sergey Grigoriev has expressed his fears that putting into operation of the pipeline BTC would be able to break down the oil market of Europe. And consequently the interests of the Russian oil exporters, which dominate on this market, may be damaged.
The analyst of the investing group "Renessans-Capital" Mrs. Elena Savchik agrees with that the transit through the territory of Russia would some reduce, since putting into operation of BTC. She does not except that in the far perspective "the pipeline Baku - Ceyhan will receive also small volumes of the Kazakhstan oil, which now is delivered though Russia". But by her opinion, "these losses would not be critical and absolutely affect on the Russian "oil field".
The officials of the Caspian pipeline consortium (CPC), 24% of stocks are shared by the Government of the RF, and else about 20% are shared by the joint enterprises with the Russian capital sharing, emphasized that they do not see rival in the route "Baku - Tbilisi - Ceyhan". ]
"The development of the CTC began else 12 years ago long before the project BTC", - the officials of the consortium's press service have explained. They have emphasized "this pipeline initially has been constructed for the Kazakhstan oil from Tengiz and Karachaganak fields in general".
