SINGNING OF THE PSA ON THE PROJECT OF THE CASPIAN SHELF FIELDS DEVELOPMENT BETWEEN "ZARIT" AND TURKMENIA WILL BE HELD SCARCELY, OFFICIALS OF "ROSNEFT" CONSIDER
BAKU.13.02.2004.MEDIA-PRESS: The signing of the Production Sharing Agreement (PSA) between the joint company "Zarit" and Turkmenistan on the project of the development of fields on the Turkmen shelf of the Caspian Sea will be held scarcely on February. Sergey Oganesyan, the Vice-President of the Oil Company "Rosneft", which is one of the "Zarit" founders has expressed such opinion to the Agency of the Oil Information (AOI).
BAKU.13.02.2004.MEDIA-PRESS: The governmental officials of Ukraine, Russia, Poland, Kazakhstan, Azerbaijan and the EU intend to discuss in the next time the possibility of creation of the international consortium for the completion of the construction of the oil pipeline "Odessa - Brodi" towards to Europe and its further operation. The Poland President Mr. A. Kvasnevski has declared about this.
BAKU.13.02.2004.MEDIA-PRESS: The next round of the negotiations on joining of Kazakhstan to the project of the construction of the Main Exporting Pipeline Baku - Tbilisi - Ceyhan (MEP BTC) will be held on March, the Ambassador of Kazakhstan in Azerbaijan Mr, Andar Shukputov has said.
BAKU.13.02.2004. MEDIA-PRESS: The drilling of the first exploration well on the structure D - 222 "Yalama" situated in the Russian and Azerbaijan sectors of the Caspian Sea, will start not on April as it had been planned earlier, but most likely in autumn. The Vice-President of the State Oil Company of Azerbaijan (SOCAR) Mr. Khosbakht Yusifzade has said.
BAKU.13.02.2004.MEDIA-PRESS: The International group of the companies "Itera" have not delivered even one cubic meter of gas since the start of the current year, in spite of availability of the relevant agreement on 4 bn cuibic meters during 2004. Moreover, it may stop the deliveries at all.
BAKU.13.02.2004.MEDIA-PRESS: The drilling of the second advanced well on the field "Shakh-Deniz" has showed the availability of the new productive stratum, the Vice-President of the State Oil Company of Azerbaijan (SOCAR) Mr. Khoshbakht Ysifizade has informed the journalists. These additional stratums allow getting the field supplies".
BAKU.13.02.2004.MEDIA-PRESS: The official visit of the President of Greece of Mr. Konstantinos Stefanopulos to Azerbaijan is planned for June, the agency "Interfax-Azebaijan" has been informed in the Greek Embassy in Baku.
BAKU.13.02.2004.MEDIA-PRESS: The Armenian lobby does all possible to prevent to consideration of the EU's offer about liberation of five occupied Azerbaijan territories by Armenia in exchange of opening of the railway communication between Azerbaijan and Armenia by the European Parliament. The Chief of the Foreign Relations of the President Administration of Azerbaijan Mr. Novruz Mamedov has said.
BAKU.13.02.2004.MEDIA-PRESS: On March 23 - 24 the visit of the President of Azerbaijan Mr. Ilham Aliyev to Uzbekistan will take place. The Ambassador of Uzbekistan in Azerbaijan Mr. Abdulgafur Abdurakhmanov has informed about this.
BAKU.13.02.2004.MEDIA-PRESS: The Uzbekistan businessmen will assist to the Azerbaijan cotton producers in getting of high cotton harvests. The Ambassador of Uzbekistan in Azerbaijan Mr. Abdulgafur Abdurakhmanov has informed Media-Press.
BAKU.13.02.2004.MEDIA-PRESS: The seventh sitting of the Azerbaijan-Uzbek intergovernmental commission on the economic cooperation will be held in Baku on March. As the Ambassador of Uzbekistan in Azerbaijan Mr. Abdulgafur Abdurakhmanov has informed Media-Press it will be held before the visit of the President of Azerbaijan in Uzbekistan. Moreover, the concrete date of the sitting has not been determined for the present, he has noted.
BAKU.13.02.2004.MEDIA-PRESS. In 2003 the goods turnover between Kazakhstan and Azerbaijan made $130 MM and the export from Kazakhstan made above $100 MM. The structure of the Kazakhstan export to Azerbaijan includes hydrocarbon crude, metals, and grain. The Ambassador of this country in Baku Mr. Andar Shukutov has informed journalists about this.
BAKU.13.02.2004.MEDIA-PRESS: This year Azerbaijan plans to open its Embassies in eight countries. The Chief of the foreign relations department of the Azerbaijan President Administration Mr. Novruz Mamedov has informed the journalists about this on the press conference.
BAKU.13.02.2004.MEDIA-PRESS: The US President J. Bush has expressed his fears that the reduction of oil quotas announced by the OPEC countries will bring to the heavy consequences for the US economy and the election campaign. The Whit House fears that the oil prices growth will bring to the reduction of the population incomes and trade deficiency growth.
BAKU.13.02.2004.MEDIA-PRESS: The claims against the American Oil Company Halliburton in breaking of embargo against Iran have been put forward. As it has been informed in the site of the British newspaper Guardian, a letter from the Ministry of Finances of the USA have been delivered from the Ministry of Finances of the USA with information on restoration of investigation of illegal trade with Iran.
By his words, "while the territorial problems between Iran and Turkmenistan exist we can not to sign the PSA" He reminded "today efforts of joining of the Iranian side to "Zarit" are made for they would not have any pretensions during negotiations". "We mean that when the agreement is signed "Turkmenneft" and the Iranian National Company" will join in the project", - the interviewer of the AOI has noted.
Earlier, the Special Envoy of the President of the RF on the issues of the legal status of the Caspian Sea, Deputy Foreign Affairs of the RF Mr. Victor Kalyuzni has declared that by the middle of February "Zarit" may sign the PSA with the government of Tukmenistan.
In 2002 the Russian companies "Itera", "Rosneft" and "Zarubejneft" founded the JC "Zarit" for development of 28, 29, 30, 31 blocks on the Turkmenian shelf of the Caspian Sea. "Rosneft" and "Gazkhimneft" (the branch company of "Itera") received by 37% stocks of "Zarit", and the Company "Zarubejneft" received the rest 26%.
THE OFFICIALS OF KAZAKHSTAN, UKRAINE, RUSSIA, POLAND AND THE EU WILL DISCUSS PLANS OF CONSORTIUM ON COMPLETION OF THE CONSTRUCTION OF THE OIL PIPELINE "ODESSA - BRODI"
On Thursday in Warsaw on the joint press-conference with Leonid Kuchma he noted that the agreement on transportation of the Caspian oil by the oil pipeline, "which will be delivered first of all from Kazakhstan and Azerbaijan to Odessa and then by the pipeline to Poland".
"In the next time the meeting of the interested sides on the governmental level will be held in the next time and if the agreement is achieved - the possibility of foundation of very serious international consortium for completion of this project will be available", - Mr. A. Kvasnevski emphasized.
"Owing to the Caspian oil, we receive the necessary element and this is very important for Poland and
Europe", - Mr. A. Kvasnevski has said. "We agreed that such meeting will be held under authority of Mr. Leonid Kuchma in the next weeks", - the Polish President has said.
The President of Urkraine noted in his turn that the Ukrainian Government decided to use oil pipeline "Odessa - Brodi" in the European direction taking into account two conditions. "At first getting oil from the Caspian region as soon as possible and a second is the construction jointly with the EU of he oil pipeline up to Poland", - he has said.
Mr. L. Kuchma noted that the first oil from the Caspian region expectedly will be delivered by the pipeline on May of the present year.
As it had been informed, on February 4 the Cabinet of Ukraine accepted the decision on using of the oil pipeline Odessa-Brodi in the direct direction. Within frameworks of this decision the government will create the working group, which will adjust issues of joint using of the oil pipeline with oil owners. At the same time the government supports the law project on transferring to concession of the oil pipeline Odessa-Brodi and offshore oil pipeline "Yuzni" in Odessa.
The transportation of 4 - 5 FMM tons of the Caspian oil by the pipeline is expected in this year.
For several months polemics around versions of using of the oil pipeline continued in Ukraine: to Europe - for the transportation of the Caspian oil or the coast of the Black Sea - for the transportation of the Russian oil.
The first turn of the oil transport system of Odessa - Brody was put into operation on May, 2002. Its capacity makes 9 - 14.5 MM tons of oil annually with the reservoir park of 200 thou cubic meters. The offshore oil terminal "Yuzni" is able to receive tankers with a deadweight up to 100 thou tons. The enlarging of the capacity of the oil pipeline up to 40 - 45 MM tons annually with enlarging of the reservoir park up to 600 thou cubic meters is provided.
THE NEXT ROUND OF THE NEGOTIATIONS ON JOINING OF KAZAKHSTAN TO THE PIPELINE BAKU - JEYHAN WILL BE HELD ON MARCH
By his words, the place of the meeting has not been determined for the present, however most likely it will take place in Baku. The previous meeting of the experts was held on December of the past year in London.
During the forthcoming negotiations the sides should complete the preparation of the project of the framework intergovernmental agreement on the transportation of the Kazakhstan oil on the MEP. The agreement should be signed between Azerbaijan, Kazakhstan and Georgia as the transit country.
for the consideration of the governments of two countries. The transit agreements would be signed since the Earlier the completion of the negotiations was conjectured for transferring the project of the agreement signing this agreement between investors of the transport system Aktau - Baku and governments of Azerbaijan and Kazakhstan.
The creation of the system Aktau - Baku supposes the construction of the new terminal for keeping and transshipment of oil in Kurik (the port in 76 km to the south-east from Aktau) and as well the connection pipelines. The capacity of the system on the transshipment would make 20 MM tons of oil annually; up to 7.5 MM tons would be delivered on the first stage. The volume of investments would be determined after singning the intergovernmental agreement. For managing the system Aktau - Baku the separate company would be founded and four companies would invest it : the Italian Eni, French TotalFinalElf, American ConocoPhilips and Japanese Inpex, which take part in the project of the development of Kazakhstan field "Kashagan" and having 15% of sharing in the company BTC Co.
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 DRILLING OF THE FIRST EXPLORATION WELL ON THE OFFSHORE STRUCTURE D-222 "YALAMA" WILL START IN AUTUMN
We shall remind that the Russian Oil Company "LUKoil", which is the operator with 80% sharing in this project, plans to drill the well from the semisubmersible floating drilling rig (SFDR) "Leader". Now the American Company ExxonMobil is conducting the drilling of the first exploration well on the offshore block "Zafar-Mashal". However difficulties have appeared. In the middle of December the drilling workers collided a powerful water emerging, which could not be stopped. By this time about $40 MM had been spent - this is a half of the budget allocated for this sinking. After this "Leader" changed the drilling points several times, however then the drilling workers collided similar problem. So ExxonMobil would not be able to complete drilling works up to April, as it had been planned in advance.
The block D-222 is the part of the transfortable structure "Yalama", which is situated approximately by equal parts in the Azerbaijan and Russian sectors of the Caspian Sea at a distance of 30 km from the coast. The depth of the sea varies from 80 up to 700 meters. The probability of opening of industrial supplies of hydrocarbons is estimated highly. The agreement on joint exploration of the industrial exploration and development of the block D - 222 between the SOCAR and "LUKoil" was signed on July 3, 1997 and ratified by Milli Mejlis (the parliament) of Azerbaijan on December 5 of his year. The supposed investments volume to the project makes $2.5 bn. In the spring of 2003 the SOCAR gave 20% of its share in this project to "LUKoil" and thus the Russian company became shareholder of 80% in the contract on D-222. Besides, the sides agreed on increase of the contract area from 1287 sq.km up to 3037 sq. km and "LUKoil" has paid out above $78 MM to the Azerbaijan side.
In this region of the Caspian Sea the drilling never has been conducted so the studying of the structure of the geological cut, revealing and studying of the oil and gas bearing horizons, determination and preliminary geological and economical estimation of the industrial hydrocarbons supplies. Two wells should be drilled during the exploration period in the contract area.
SINCE THE BEGINNING OF THE YEAR "ITERA" HAVE NOT DELIVERED EVEN ONE CUBIC METER OF GAS TO AZERBAIJAN
As the officials of the Baku office of "Itera" have explained to the agency "Interfax-Azerbaijan", the cause of default on obligations by contract is that still company has not managed to get permit to the gas transport capacities of the Russian monopolist "Gazprom". As it is known, "Itera" delivered the Turkmen and Uzbek gas to Azerbaijan using the pipeline system "Middle Asia - Center", the operator of which the same "Gazprom" was. In this case "Itera" signed the agreements on purchase of 10 bn cubic meters of the Middle Asia gas for three Caucasus countries, however now a danger of breaking of obligations has appeared to the company.
Thus, the version, supposed still in the past year that "Gazprom" decided to crowd out entirely "Itera" from the gas market of the South Caucasus is proved. The statement of the General Director of "Gazexport" (the branch company of "Gazprom") Mr. Alexander Medvedev that his company "entirely supplies the gas demands of the Transcaucasus republics also proves this obliquely.
The past year just as "Gazprom got some volumes of gas in its bag from the Central Asia, it began to crowd "Itera" in Georgia, Armenia and Azerbaijan. Already in the beginning of January of this year "Itera" lost a right to deliver gas to these countries in connection with the deficiency of the transport capacities in the Uzbek area of the pipeline Middle Asia - Center. And now "Gazexport supplies the demands of these countries".
So already by the present time the contracts of "Gazexport" with the South Caucasus countries have been revised in increase trend. At the same time the export "daughter" of "Gazprom" gave the most share of the market captured from "Itera" to the Russian-Kazakh JC "Kazrosgaz", which will satisfy the demands of Azerbaijan.
By the words of Mr. Medvedev, the subsidiary agreement have been signed already with Azerbaijan, which provides the extension of obligation of "Gazexport" to Baku from 2.75 up to 4.5 bn cubic meters. At the same time the annual demand of the Azerbaijan in the import gas makes approximately about 6 bn cubic meters. "We have agreed preliminarily that if "Itera" is not able to deliver gas to the country, "Gazprom" will take 100% obligations for itself", - he has said. During the recent visit of the President of Azerbaijan to Moscow, this problem was solved also - it may be said so. Several days later the first Vice-Premier of Azerbaijan Mr. Abbas Abbasov and the President of "Gazprom" Mr. Alexey Miller agreed on this.
We shall remind that in 2004 Azerbaijan planned to purchase 6 bn cubic meters of gas for $52 per 1000 cubic meters. It was supposed that "Gazexport" would deliver a half of the agreed volume and "Itera" - another. However, it is clear, by all probability, "Gazexport" will deliver all gas volumes to Azerbaijan. On January of the current year Azerbaijan imported already 466 MM cubic metes of gas already.
THE SECOND ADVANCED WELL ON THE FIELD "SHAKH-DENIZ" HAS REVEALED NEW PRODUCTIVE STRATUS
The drilling of the second advanced well started on September 2003 and completed on January 2004. Its depth made 6.450 thou m.
It is planned to start the drilling of the third well in the end of February.
The program of the advanced drilling on "Shakh-Deniz" provides sinking of the three wells and has been provided for acceleration of gas production after the construction of production platform on the field.
On February 27 in Baku shareholders of the project sanctioned "Stage-1" of the gas condensate field "Shakh-Deniz" development by a cost of $3.2 bn.
"It includes the installation of th platform of TPG 500 for 15 wells with a capacity of 8.4 bn cubic meters of gas annually, the construction of two underwater pipelines with a length of each one by 100 km (26 inches gas pipeline and 12 inches - for the condensate) from the platform TPG - 500 to the Sangachal terminal. Moreover, within frameworks of this stage the installation for collecting of gas and condensate on the coastal terminal in Sangachal and as well the South-Caucasus pipeline - from Azerbaijan through Georgia to the Turkish frontier.
The first gas production is planned for the mid of 2006 on the field "Shakh-Deniz". Within "Stage-1" the production of 178 bn cubic meters of gas is supposed. According to estimations, totally the supplies of the field make 700 bn cubic meters.
The following companies are the shareholders of the project "Shakh-Deniz": BP - 25,5%, Statoil -25,5%, LUKAgip - 10%, TotalFinaElf - 10%, the SOCAR - 10%, the Iranian National Company OIEC - 10% and the Turkish Company TPAO - 9%.
THE VISIT OF THE PRESIDENT OF GREECE TO BAKU FROM GREECE IS PLANNED FOR JUNE
"Within frameworks of this visit the sitting of the Azerbaijan - Greek intergovernmental commission on the economic cooperation will be held. Moreover, the signing of near 10 agreements on the cooperation between two countries is planned", - the officials of the Embassy have said.
The official of the Embassy expressed his sureness that the visit of the Greek President will allow first of all to activate the trade economical relations between Baku and Athens. In this plan the perspectives of the cooperation of two countries in the gas sphere cause especial interest. As it is known Baku and Athens plan re-exportation of the Azerbaijan gas from the field "Shakh-Deniz" through Turkey to Greece and from there to the other countries of the South Europe.
THE ARMENIAN LOBBY INTENDS TO PREVENT TO THE CONSIDERATION OF THE SUGGESTION OF THE EU ON LIBERATION OF 5 AZERBAIJAN TERRITORIES OCCUPIED BY ARMENIA BY THE EUROPEAN PARLIAMENT
By the opinion of Mr. N. Mamedov, the offer of the EU of Azerbaijan may be considered as one of the stages of the adjustment of the Nagorny Karabakh conflict. If even the European Parliament will not consider it, the Minsk Group of the OSCE (for the adjustment of the Karabakh conflict) should receive this information and display it in its offers.
As to a possibility of opening of the frontier with Armenia by Turkey, Mr. N. Mamedov has noted that Turkey keeps the principle "One nation - two states" (Turkey and Azerbaijan are considered) and so does not open its frontier until the problem of Nagorni Karabakh will have not been adjusted. By his words, the talks about this are the next provocation of Armenia. "Armenia is in very heavy economic situation now and it will be worst in two - three years. Opening of frontier is a single salvation of it. However, the terms about pretensions of Armenia to the Turkish territories and so-called genocide have been displayed in the Constitution of Armenia. Only since removal of this points out of the Main Law, Armenia would have a moral right for accounting on improvement of relations with Turkey", - Mr. Mamedov has emphasized.
DURING THE VISIT OF THE PRESIDENT OF AZERBAIJAN TO UZBEKISTAN IN TASHKENT THE OPENING OF THE MONUMENT TO GEYDAR ALIYEV WILL TAKE PLACE
By the words of the diplomat, the program of visit will be very saturated: besides of the official negotiations and signing of a number of documents about the cooperation in the different fields, the ceremony of opening of new buildings of the Embassy of Azerbaijan and cultural center of the Azerbaijan-Uzbek friendship, in front of which the monument to the President Geydar Aliyev will be installed is going to be held in Tashkent. By the words of Mr. A. Abdurakhamanov, one of the streets of Tashkent will be named after Geydar Aliyev.
Moreover, these days the monument to the great Azerbaijan poet and philosopher Nizami Gyanjevi will be opened in Tashkent. It will be installed in front of the University, which is named after him.
THE UZBEK BUSINESSMEN WILL RENDER ASSISTANCE IN COTTON PLANTING AND SILKWORM GROWING IN AZERBAIJAN
By his words, the relevant areas have been allocated already for this project and now the issue of the financing is solved. The grown cotton will be processed here. A technical required will be delivered from Uzbekistan.
The Ambassador has informed also that the Uzbek businessmen plan to adjust silkworm growing in Azerbaijan. The specialist had visited to the regions, where silkworm is grown traditionally. By their opinion, the finance issue is agreed with bank institutions.
THE NEXT SITTING OF THE AZERBAIJAN-UZBEK INTERGOVERNMENTAL COMMISSION WILL BE HELD ON MARCH
By the words of Mr. A. Abdurakhmanov, the commission will prepare a number of agreements on cooperation in economy, transport, consultations between the Ministries of Foreign Affairs, and also probably in the military-technical cooperation field; and they may be signed during the forthcoming visit.
THE GOODS TURNOVER BETWEEN AZERBAIJAN AND KAZAKHSTAN MADE $130 MM IN 2003
As to possibility of increase of the Kazakhstan grain export to Azerbaijan over 250 thou tons provided for the current year, the diplomat has said that the Kazakhstan side offered to discuss this issue during the forthcoming Azerbaijan-Kazakhstan intergovernmental commission to be held in Astana.
THIS YEAR AZERBAIJAN PLANS TO OPEN THEIR EMBASSIES IN EIGHT COUNTRIES
By the words of Mr. N. Novruzov, the Embassies were opened both in Europe and Asia, particularly in Poland and Japan. "Azerbaijan has been recognized by the world community as one of the key counties of the South Caucasus. So we should extend our diplomatic capacities".
As well he has noted that this year the program of the foreign visits of the President of Azerbaijan Mr. Ilham Aliyev will be saturated enough. It is expected that every month he will visit one or two countries. Sop his visits to Kazakhstan and Uzbekistan are planned for March and visit to Turkey for April. The forthcoming visits of the President to the Turk countries show that he pays great attention to the relations with these countries and intends to improve them up to higher level.
As to the relations of Azerbaijan and Turkmenistan, he has signed that they are being adjusted at the last time and probably up to the end of the year Turkmenistan restores it's the diplomatic missions to Baku.
THE REDUCTION OF THE OPEC QUOTAS FOR THE OIL PRODUCTION DESTROYS THE US ECONOMY, THE PRESIDENT J. BUSH HAS DECLARED
Increase of the trade deficiency of the USA makes 500 bn dollars at the present time may affect negatively on the dynamic growth of the American currency. "We hope that the producers will not carry out actions, which would be able to break the US economy and the American workers state", - the official of the White House Mr. Trent Daffi has said.
The countries of the OPEC, particularly the Saudi Arabia justify the reduction of the quotas by a necessity of prevention of sharp falling down of oil prices in spring when the consumption reduce sharply in the northern hemisphere.
At the same time now the oil prices exceed the maximum level recommended by the OPEC - 28 dollars for barrel. On Tuesday after the announcement by the OPEC about the two degrees reduction of quotas by 1.5 and 1 MM bbl a day, the oil price for the Brend mark has grown by 64 cents and reached a level of 29.75 dollars for a bbl.
In their turn the officials of the OPEC affirm that the decision of the world cartel on the reduction of the production of oil is directed for the prevention of the spring price fall.
The oil expert in Vienna has said in the interview to the agency IRNA that this decision was accepted in spite of the pressure rendered by the International Energy Agency and Ministry of Energy of the USA for increase of oil production.
By his words, at the present time, the balance between demand and offer has been established on the oil markets, however in connection with the end of winter and reduction of oil demands oil prices usually fall. The reduction of the OPEC quotas has been directed against this.
THE FORMER COMPANY OF THE VICE-PRESIDENT OF THE USA IS CLAIMED IN VIOLATION OF THE AMERICAN SANCTIONS TO IRAN
The sources in the Ministry declared that the investigation will be continued in connection with the making available of new evidences of illegal operation of the company in 1985 - 2000 when it was headed by the present Vice-president of the USA Mr. Dick Chaney, who had received the support of 36 MM dollars when left the work in the company for passing to the White House.
Particularly, the investigators got the documents, which serve an evidence of business relations between the branch company Halliburton, registered in the Caiman Islands and the Iranian Oil Company "Kala".
Earlier the officials of the Company Halliburton confirmed that the US citizens did not work in their branch companies, which realized the business operations with Iran and thus the company did not break the American laws. The question is that the American companies may operate with Iran through the branch companies if persons who have not the US citizenship head them. For the last period this is no the first claim against Halliburton, which is connected with incorrect business conduction. The company is suspected in double accounting, increase of military deliveries cost and giving of bribes to officials. Earlier the company was claimed already in breaking of the trade embargo against Libya and at the last week it became known about the start of investigation in respect to Libya and the star of investigation in connection of giving bribes to the Nigerian officials in the ends of 1990 - s by a total of 180 MM dollars became known.
Moreover, the American Government continues to supply the company by profitable orders. Halliburton received the contracts on restoration of Iraq by a total over $9 bn. Besides of this it has got the most number of contract on the American army supplying than another one.
