THE HEAD OF ATAHOLDING INTENDS TO PRESENT OFFERS ON THE BUSINESS DEVELOPMENT TO THE PRESIDENT OF AZERBAIJAN
BAKU.16.02.2004.MEDIA-PRESS: The Chie of the Observation Council AtaHolding Mr. Akhmed Erentok intends to appeal to the President of Azerbaijan with offers on business maintenance in the country.
BAKU.15.02.2004.MEDIA-PRESS: The Mission of the World Bank (WB), which arrives today in Baku will familiarize with the realization of the project "Development and Crediting of Agriculture".
BAKU.16.02.2004. MEDIA-PRESS: "Ten years of humanitarian intervention in Azerbaijan, influence, received experience and future directions". The international conference financed by the largest oil companies BP, ExxonMobil and Statoil will open under this slogan on February 17 in Baku.
BAKU.16.02.2004.MEDIA-PRESS: The Chief of the OSCE the Foreign Minister of Bulgaria Mr. Solomon Pasi intends to visit to the South Caucasus and conduct meetings with the heads of the regional countries in the next time.
BAKU.16.02.2004.MEDIA-PRESS: The State Oil Company of Azerbaijan (SOCAR) has accepted the program of the works for 2004 for the companies Gobustan Operating Company (GOC) developing the field "South-West Gobustan".
BAKU.16.02.2004.MEDIA-PRESS: In 2004 the Company Itochu Oil Exploration Co. Ltd. does not intend to change its priorities on the investing of the oil projects in Azerbaijan, the Chief of the Baku Office of the Company Mr. Kotaro Morishita has said.
BAKU.16.02.2004.MEDIA-PRESS: The part of the State Oil Fund of Azerbaijan (SOFAR) should be transferred to foundation of industrial and social objects in the regions of Azerbaijan. The Chief of the Parliament Commission on the economic policy Mr. Sattar Safarov has expressed such opinion.
BAKU.16.02.2004.MEDIA-PRESS: Several American oil companies display the interest to participation in tenders on new contracts on the development of oil in Iran in spite of sanctions of the USA against Iran, blocking foreign investments to oil sector of the IRI.
BAKU.16.02.2004.MEDIA-PRESS: The Ministry of Transport of Azerbaijan offers to balance the railway tariffs and oil and oil products transportation on the oil terminals in Azerbaijan and Georgia, the officials of the Ministry of Transport of Azerbaijan informed the agency "Interfax-Azerbaijan".
BAKU.16.02.2004.MEDIA-PRESS: The external debt of Azerbaijan per a capita made $192 by January 1, 2004 and this is by 14.3% higher than by January 1, 2003. The site of the Ministry of Finances of Azerbaijan provides this data.
BAKU.16.02.2004.MEDIA-PRESS: In 2003 the incomes from the privatization in Azerbaijan (with account of incomes from the grounds sale) made 158.6 bn manats.
BAKU.16.02.2004.MEDIA-PRESS: The Ministry of Labour and Social Protection of the Azerbaijan Population should works out and present the package of offers on solving of the employment problem for consideration of the Government.
"We have prepared the package of the offers on improvement of business financing in Azerbaijan, and I shall appeal with them to the Present of Azerbaijan. We offer to enlarge the list of the potential financing sources and there are both external and internal ones", - Mr. A. Erentork has informed.
"We think that it would be purposeful to allocate credits to business in account of oil incomes, sharing of venture capital, reserves of the pension funds," - the Chief of AtaHolding has said.
Mr. A. Erentok prefers the international finance organizations and as well as the attraction of leading Azerbaijan businessmen abroad as potential external finance sources.
Besides, the holding offers to increase upper level of credit limits, e.g. from the present $100 thou up to $250 thou for small businessmen and from $1 MM up to $5 MM for large businessmen.
"If our suggestions are supported, annual investments volume to the economy of the country will make $500 MM in account of enumerated financing sources, list of which consists of 30 large finance organizations", - Mr. A. Erentok has noted.
By his words, in result of the next 5 years it would be possible to create 600 thou new job places in Azerbaijan.
INQUIRY: Ataholding founded in 1993 includes the group of companies operating in the sphere of the industrial production, construction, bank sector and other fields.
5 juridical persons are the shareholders of AtaHolding. 50% stocks of holding belong to the British Investment Group Financial Management Holding UK, which intends to take part actively in the investment projects of the Azerbaijan holding.
THE WB EXPERTS WILL FAMILIARIZE WITH REALIZATION OF THE PROJECT "DEVELOPMENT AND CREDITING OF THE AGRICULTURE IN AZERBAIJAN"
As Media-Press has been informed in the Baku Representation of the WB, besides of this the Mission also will consider the opportunity of continuation of similar projects in Azerbaijan in future.
The agreement on realization of mentioned project between the Government of Azerbaijan and WB was signed in 1999. However its practical realization started on April of 2002. During the first four years $33.6 MM will be allocated and the Government will allocate $1.4 MM of them. Totally, the project is estimated by $100 MM and has been accounted for ten years.
Within the frameworks of the project a conditioning of farmers' property will be carried out, the regional offices of lands registration and farmer economies crediting will be founded. The project, which includes six regions of Azerbaijan provides not individual, but collective crediting of farmers. For reception of credit by a total of more than $9 thou, it should be necessary to unite, as minimum, ten farmer economies. Accordingly, a responsibility for redeeming the credit will be collective also.
This is the second project of the WB, providing the development of the agrarian sector in Azerbaijan. The first one "The Privatization of the Economies" starte still in 1997 in six pilot regions of Azerbaijan: Barda, Udjar, Salyan, Khachmaz, Sharur and Nakhchivan (villages) and will be over in this year. This program by a total of $30 MM has included 150 villages. It provided crediting farmers, assistance to privatization of the lands, rendering information services to farmers and their training as well to the market relations. Almost 5 thou farmers received credit by a total of $5.8 MM within frameworks of the project.
THE INTERNATIONAL CONFERENCE "10 YEARS HUMANITARIAN INTERVENTION IN AZERBAIJAN: INFLUENCE, GOT EXPERIENCE AND PROSPECT DIRECTIONS"
The results of foreign humanitarian support rendered for the last 10 years, as well as policy of attraction of incomes attracted to the humanitarian sphere, problems attraction of the humanitarian support to the country will be analyzed on the conference. The main directions of the further humanitarian activity I the country will be determined and operation plan project will be considered within the frameworks of this matter.
It is expected that the President of Azerbaijan Ilham Aliyev, the officials of the Government of the country, international structure, companies, donor organizations.
THE ACTING CHIEF OF THE OSCE INTENDS TO VISIT COUNTRIES OF THE SOUTH CAUCASUS
"I hope that during this trip we will be able to discuss problems in details and will search adequate ways of their solving, - the Chief of the OSCE, has said in the conversation with the correspondent of ITAR-TASS. - I consider that the field missions of the OSCE continue to play the significant role in the deal of strengthening of credit and progress achievement on negotiations on solving existing conflicts in the region on the base of experience accumulated by previous administration and at accounting of interests of all interested sides".
Mr. Pasi has noted that the existing mechanism of adjustment of the conflict in Nagorni Karabakh, so called Minsk Group, has positive potential and it will be used in full volume during the Bulgarian chairmanship. "I hope that after the past year President elections in Azerbaijan and Armenia subsidiary opportunities for activating of efforts in this direction will appear", - Mr. Pasi has emphasized.
THE SOCAR HAS APPROVED THE PROGRAM OF WORKS IN 2004 FOR THE COMPANY GOBUSTAN OPERATING COMPANY
As Media-Press has informed, it is planned to drill four exploration and eight operation wells in the current year. Now seismic exploration in the coastal part of the block continues in the coastal area of the block, which will be completed in the end of March. By its results places of new wells will be determined and necessity of drilling of five exploration wells will be cleared up. Moreover, since the seismic works completion the budget of the company will be determined. In the past year it made $15 MM.
The SOCAR also approved the report of the GOC about execution of works within frameworks of the project in 2003. The past year this operation company drilled six operation wells and single exploration one.
The contract on the joint exploration and development of the contract area of the "South-Western Gobustan" was signed on June 1998 and ratified by Milly Mejlis (Parliament) of Azerbaijan on November of the same year. The SOCAR (20%), Union Texas Petroleum (UTP- 40%) and Commonwealth Oil & Gas (40%) became its participants. However, soon the UTP left the project, because considered it nonprofitable. And Commonwealth got 40% of sharing of this company. However, the company was not able to finance 80% sharing in the project and transferred 62,83% of its sharing to two Chinese companies - Smart Asses and CNOPC.
The contract area of the "South-Western Gobustan" consists of 3 blocks with the total square of 604 sq. km. The fields "Shikhzakirli", "Sheytanud", "Vorkyut", "Donuzlug", "Nardaran", "Ilkhichi", "Gyarbi Gadziveli", "Sundi", "Shargi Gadziveli", "Turagay", "Kenizdag", "Gyarbi Duvanni", "Duvanni", "Solakhay" and "Dashgil", which had been developed and then left for a low gas and oil production level. 137 working wells were drilled on the field, however all they were shut down. Besides, else 250 exloring and estimate wells have been drilled.
The total of the capital expenditures for the realization of the project is estimated by $470 MM , produced supplies - 115 MM bbl of oil an 530 bn cubic feet of gas (totally, about 206 MM bbl of oil equivalent).
IN 2004 ITOCHU OIL DOES NOT INTEND TO ACTIVATE THE ACTIVITIES ON THE NEW PROJECTS IN AZERBAIJAN
"We have the perspective projects and offers, however, at the present time we concentrate our attention to available projects", - he has said.
The company has 3.9% share in the project of the development of the block of the fields "Azeri - Chiraq - Guneshli" and 3.4% - in the pipeline company BTC Co (Baku - Tbilisi - Ceyhan).
Itochu also had 20% in the PSA in the development of "Ahsrafi - Dan-Ulduzu" closed on March 2000 for the commercial unattractiveness and also 7.5% - in the project of the development of the structures "Yanan - Tava - Ateshgyakh - Mugan - Deniz", which also should be closed soon for the analogous reason.
Mr. K.Morishita has noted that since 1996 up to January 2004 Itochu Oil invested $385 MM to the economy of Azerbaijan. 28.8% from this total ($111 MM) were allocated in 2003.
The investments of the company to the project of the development of "Azeri - Chiraq - Guneshli made about $300 MM, to the pipeline Baku - Tbilisi - Ceyhan - $50 MM, the project "Ashrafi - Dan Ulduzu" - $25 MM, "Yanan - Tava - Atehsgyakh - Mugan - Deniz" - $10 MM.
THE PLACEMENT OF MEANS OF THE STATE OIL FUND OF AZERBAIJAN IN THE FOREIGN BANKS IS LESS EFFECTIVE THAN THEIR INVESTING TO THE COMPANY, THE DEPUTY CONSIDERS
The Chief of the commission considers such version of using of means of the SOFAR more effective than their placement in the foreign banks with annual profit rate of 2 - 3%.
"The means of the State Oil Fund may be transferred for foundation of high profitable industrial and social enterprises, foundation of small processing ventures, - Mr. S. Safarov considers. - Thus using of the means of the SOFAR would allow ensuring the economic development of the country, creating new job places, solving the employment problem".
Earlier the Executive Director of the State Oil Fund Mr. Samir Sharifov declared that he considers using means of the fund for these purposes inexpedient as banks have to be engaged in crediting of similar projects.
The volume of means accumulated in the SOFAR made $815 MM by January 1, 2004 meanwhile this rate made $692 MM on January 2003.
The profitability of the fund in 2003 in the national currency made 5.08%, and 4.45% in the US dollars.
The State Oil Fund was founded in accordance with the edict of the President of Azerbaijan and operates since 2000. The SOFAR is out of budget state institution, which is accountable to the President of the country.
Particularly, the incomes of the SOFAR are formed in account of selling of oil and gas, bonus payments from realization of oil and gas projects, rent payments for using of the state property within frameworks of contracts concluded with the foreign companies.
The official rate of exchange on February 16, 2004 - 4936 manat/$1.
THE AMERICAN OIL COMPANIES INTEREST BY PROBABILITY OF WORK IN IRAN
In accordance with the words of Mr. Mohammad Mohaddes, the chiefs of the project development department in the National Oil Company (NIOC) during the commercial forum in Holland some American companies interested by tenders on 16 recently discovered oil areas.
"Frameworks of contracts as well as technical and finance problems of execution of seismological exploration and drilling were agreed on the forum", - Mr.Mohaddes has said. - Iran has no objections against sharing of the American Oil companies in these plans", - he has declared and added that for participation in tenders all companies should get the tender documentation before April 10, and present their suggestions for 25-year contracts before July 10.
16 blocks offered for tender are a part of 51 ones on the field revealed recently in Iran.
We shall remind that in 1985 the USA accepted the law forbidding the American companies and their foreign branches to lead their business in Iran, especially in the energetic sphere. However, this did not prevent to some of them to cooperate, moreover mysteriously and through figurehead companies with the Tehran regime. Recently in the USA scandal emerged with the American Oil Company Hallliurton which in 1995 - 2000 cooperated with the Iranian Oil Company Kala through its branch company.
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.
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".
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.
THE MINISTRY OF TRANSPORT OF AZERBAIJAN SUGGESTS TO BALANCE THE TERMINAL AND RAILWAY TARIFFS WITH ONES ACTING IN GEORGIA
The Ministry of Transport of Azerbaijan considers that it would be certain to revise the tariffs established on the oil an oil products transportation on the Georgian oil terminal in the port Batumi by their reduction and as well the increase of tariffs on the railway transportation in Azerbaijan, the interlocutor has explained.
By the opinion of the experts, it is necessary because of the transportation route Asia-Caucasus-Europe (The Great Siliki Way) should be able to compete effectively with the alternative versions of the transportation and as well as for attraction of subsidiary volumes of cargos to this route.
At the present time the tariffs for oil transportation within territory of Azerbaijan make about $9 for one ton and $5 - for the railway transportation, $4 - for the processing on the terminal. In Georgia transportation is carried out by tariff of $11: $5 of it is paid out for transportation and $6 - for services on terminal.
In the next time the Ministry of Transport of Azerbaijan plans to conduct the meeting with the railway terminal and offshore ministries and as well the owners of cargos and expeditors taking part in the oil and oil products transportation from the Central Asia and Baku and further to Georgia and will try to believe them in the economic necessity of the tariffs increase in Azerbaijan for cargos transportation by railway.
As it has been told to the Agency "Interfax-Azerbaijan" in the Embassy of Georgia in Azerbaijan, at the present time the Georgian Railway is the heavy finance state and as result of this it can not realize projects in account of the own means as profit from oil transportation is very low. Tariff on them remain unchanged since 1998 meanwhile tariffs for transportation should be significantly reduced for attraction of new cargo volumes, - the officials of the Embassy have noted.
It was informed earlier that the Ministry of the Economic Development of Azerbaijan opposes to the increase of the railway tariffs on the territory of the Republic explaining this by absence of the economic ground of the ARW's offer.
IN 2003 THE EXTERNAL DEBT OF AZERBAIJAN PER A CAPITA GREW BY 14%
The external debt of the country in 2003 grew by 16.1% and made $1.575 bn by January 2004. By data of the Ministry of Finances, the ratio of the external debt to the GDP makes 24% and increased by 1 rate point for 1year. Within frameworks of external debt credits received for conduction of economic reforms made $497. The share of the International Monetary Fund make $262 MM, and $235 MM make a share of the WB.
Credits allocated for the realization of the investment projects make $1078 bn. Particularly, the external debt on the projects in the energetic sector make $393 MM, in the agriculture and melioration - $134 MM, in the chemical industry - $65 MM, in oil and gas field - $179 MM, for restoration of the territories liberated from the occupation - $27 MM, credits to the social field - $46 MM.
THE INCOMES FROM THE PRIVATIZATION IN AZERBAIJAN IN 2003 MADE 158.6 BN MANATS
By the information of the State Committee of the Republic, stocks of 206 companies, which the state had shared were sold on monetary, cheque and closed auctions and 122 bn manats were earned.
Moreover, in 2003 1677 small enterprises were privatized and the budget of the country earned 36.6 bn manats.
Since 1996 (the date of the state property privatization process) up to January 1, 2004 599.4 bn manats made the earning of the state budget. For this period, 38701 small enterprises were privatized including 751 industrial ones, 9720 services field entities, 3136 trade enterprises, 16 965 transport facilities and 5 894 other entities.
The official rate of exchange makes 4936 manats/$1 on February 16, 2004.
THE GOVERNMENT OF AZERBAIJAN WILL PREPARE THE POPULATION EMPLOYMENT
As the agency "Interfax-Azerbaijan" has been informed in the Cabinet, besides, it is planned to prepare offers on increase of dole volumes and as well program of assistance to youth searching a job.
In 2004 the Ministry of Labor jointly with the State Fund of the Social Protection of the Population should prepare the suggestions on intensification of the social protection of the Azerbaijan citizens engaged in the labor activities abroad", - the interlocutor of the agency has said.
By January 1, 2004 a number of registered unemployed citizens in Azerbaijan made 54 365. However, by nonofficial data, probable total of unemployment in Azerbaijan makes 670 - 680 thou persons.
