THE SHIRVAN NATIONAL PARK STANDS IN THE WAY OF THE COMPANY SALYAN OIL
BAKU.25.02.2004.MEDIA-PRESS: The Chief of the Operation Company Salyan Oil Ltd., which develops oil fields "Kyursangi" and "Garabagli" put the question that no national parks should be situated on the contract area. The Minister of Ecology and Natural Resources of Azerbaijan Mr. Guseyn Bagirov has said.
BAKU.25.02.2004.MEDIA-PRESS: For satisfaction of demands of the country in the industrial wood and needs of the population in woods, 250 thou saplings of quickly growing tree kinds have been planted in the specialized economies of Azerbaijan. By September their amount will be brought to 1 MM and after this they will be given to interested persons, the Minister of Ecology and Natural Resources of Azerbaijan Mr. Guseyn Bagirov has said.
BAKU.25.02.2004.MEDIA-PRESS: Armenia has suffered a serious diplomatic defeat in the Karabakh issue, the Armenian deputy of the Parliament of Armenia from the opposition fraction "Justice" Mr. Grigor Arutunyan thinks.
BAKU.25.02.2004.MEDIA-PRESS: The Ministry of Defense of the USA has started the investigation of claims that the branch of corporation Halliburton increased prices for fuel delivered to the American troops in Iraq.
BAKU.25.02.2004.MEDIA-PRESS: The Russian Company LUKoil International Trading & Supply has become the purchaser of the second March oil party of the State Oil Company of Azerbaijan.
BAKU.25.02.2004.MEDIA-PRESS: The State Oil Company of Azerbaijan has developed the program of using the alternative sources of Energy on oil and gas fields. Now the program is under consideration of the Cabinet. The Advisor of the Vice-President of the SOCAR Mr. Eldar Shakhbazov has informed about this.
BAKU.25.02.2004.MEDIA-PRESS: In Astana the package of documents regulating disputable issues on development of oil field in the Caspian Sea as well as the package of documents on approval of budget plan of the Kashagan project have been signed. A start of the commercial oil production on the field Kashagan on the Caspian shelf is planned for 2007 - 2008 years. The Prime Minister of Kazakhstan Mr. Danial Akhmnetov declared this on February 25 on the briefing in Astana after signing the agreement with the consortium Agip KCO.
BAKU.25.02.2004.MEDIA-PRESS: Turkey and Greece have ratified the agreement on the construction of connective gas pipeline between two countries signed on December 24, 2003. It is provided for direct supplies of "blue fuel" to Europe.
BAKU.25.02.2004.MEDIA-PRESS: The prices for freightage of oil tankers grow on the world market. In accordance with the last data, now the companies demand $140 thou for one day of single super tanker freightage.
BAKU.25.02.2004.MEDIA-PRESS: The special branches of the JC "Azerenerjji" repair high voltage transformers on the substations of the energy systems. As press-service of "Azenerji" informs, at the present time, the repairs of the transformer on the substation "8 km" has been finished. This would allow improving of energy supplying of Baku dwelling massives "8 km", "Akhmedli" and "Guneshli".
BAKU.25.02.2004.MEDIA-PRESS: Since 2005 Azerbaijan starts redemption of credits of the WB received under the different projects.
BAKU.25.02.2004.MEDIA-PRESS: In Azerbaijan special industrial area for liquidation of written of ships should be founded. The official of the Russian Maritime Register in Azerbaijan Mr. Dmitriy Shestakov has declared this on the seminar "Ecological Aspects of Industrial Production of Energy Resources".
BAKU.25.02.2004.MEDIA-PRESS: In the next days the meeting of officials of the Ministry of Ecology and Natural Resources of Azerbaijan and company BP - Azerbaijan will be held for clearing up a number of issues connected with the development of offshore fields "Azeri - Chiraq - Guneshli".
By the words of the Minister, similar questions should be put earlier. "Moreover, we consider that in similar conditions an example of production of oil on the territory of preserve not damaging nature may be shown. This is not correct that the company considers to withdraw the national park out of the contract area", - Mr. G. Bagirov has said.
By the opinion of the Minister, even if the status of preserve is removed within the contract area, the oil workers also should keep environmental regulations. Mr. G. Bagirov thinks that similar declarations of the company's officials are a reaction on demands of the Ministry of Ecology.
We should remind that the Ministry of Ecology of Azerbaijan presented refine sanctions by a total of 500 MM manats (slightly more than $100 thou) to the Operation Company Salyan Oil Ltd. for breaking of oil production regulations on the field "Garabagli", which brought to oil pollution. An action has been brought on this case.
The contract on the development of the fields "Kyursangi" and "Garabagli" has been signed on December 1998. The operation company Salyan Oil was founded on May 12, 1999. The State Oil Company of Azerbaijan (SOCAR - 50%) and Chinese companies CNODC and CNPC (by 25%) are its shareholders. Up to date the total volume of investments has made $115 MM. The production of oil on the fields makes above 1 thou tons per a day. Since 1961 768 wells has been drilled on this structure and 260 of them are operated today.
THE NATIONAL PROGRAM OF RESTORATION AND ENLARGING OF FORESTS IS SUCCESSFULLY REALIZED IN AZERBAIJAN
The Ministry of Ecology is ready to allocate 500 hectares of the state forest fund for growing of quickly growing kinds sorts of trees on these areas. By the words of the Minister, during two years these trees reach a height of 7 - 8 sm. 200 - 400 cubic meters of qualified wood may be got. By his opinion, this method would allow to reduce illegal felling of forests.
By the words of the Minister, mainly illegal felling is explained by demands of people in firewood and construction wood. "During a year we produce 60 - 70 thou cubic meters of firewood and industrial wood from old and ill trees, however it is a little. Applying the method offered by us would allow increasing industrial wood production volumes during five years up to 80 - 100 thousand cubic meters per a year. In addition, we would have definite volumes of woods received in account of sanitary fellings. We should be able to provide cheap, qulaitative wood produced in a legal way for the people and prevent destroying the forests", - the Ministry has said.
We shall note, that since 2002 the Ministry of Ecology and Natural Resources of Azerbaijan conducts and active work on restoration of the forestry of the country. In the past year new forest-plantations were placed within an area of 3.1 hectares; forest-restoration works were done within an area of 5 thou hectares. Totally, 12 MM saplings were grown in 2002. It is planned to increase this value up to 25 - 26 MM in 2003.
On February 2003 the National Program of Forest Extension was accepted in Azerbaijan. It provides plantintg of forests withing an area of 45 thou hectares and forest restoration within and area of 200 thou hectares up to 2008.
The forests area occupies 11% of the country's territory. A total area of the forest fund makes 1.213 MM hectares (including fields, meadows and areas around forests); the direct territory of forests makes about 950 thou hectares. 107 kinds of trees and 328 kinds of bushes grow in the forests. Expenditures of the budget of 2003 for the forestry make 9.581 bn manats, and this exceeds rates of 2002 by 961 MM manats.
ARMENIA HAS SUFFERED A SERIOUS DIPLOMATIC DEFEAT IN THE KARABAKH ISSUE, THE ARMENIAN PARLIAMENTARIAN THINKS
He has noted that before Nagorni Karabakh and Azerbaijan were considered as sides of the conflict, however the last resolution of the Parliament Assembly of the EU recognize Azerbaijan and Armenia as conflict sides and we has been considered as occupiers in it", - the Deputy has said.
"This is a serious defeat, which transformed victories achieved during the war in zero", - Mr. G. Arutunyan thinks. By his opinion, it would be difficult to change the formed situation. At the same time the Parliamentarian has noted "this has been a result of the policy having been conducted by the President R. Kocharyan during last years for recognition of Armenia as a side of the conflict".
ELSE ONE SCANDAL AROUND HALLIBURTON HAS OCCURRED
As the press-secretary of Pentagon has declared, the investigative organs paid main attention on the company Kellogg, Brown and Root, which is suspected in increasing prices for oil products delivered to the American troops in Iraq.
As it is known, the Corporation Halliburton is the largest supplier of the American troops in Iraq - it realizes many contracts - from the construction up to cleaning of uniform washing. The Corporation is connected with the Vice-President Mr. D. Cheyni, who headed it in 1995 - 2000.
Pentagon has not informed about terms of ivestigation. Auditors from Pentagon consider that subcontractor rises prices by $61 MM. Else on October of the past year, congressmen-democrats transferred inquiry to the White House, where they claimed Halliburton in increasing of prices by 65 - 75 cents for each gallon of fuel (slightly less than four litres), delivered to Iraq. The authorities of the USA paid from 1.62 up to 1.70 dollars for a gallon of benzene including transport expenses by a total of 0.91 - 0.99 dollars. By the words of the congressmen, experts are sure that the cost of benzene transportation from Kuwait to Iraq should not exceed 15 - 25 cents.
The officials of Halliburton reject all claims declaring that the company is criticized as the present Vice-President of the USA Mr. D. Cheyni had worked in it.
We shall remind that this is not the first scandal around Halliburton. Very recently, claims on breaking of the trade embargo against Iran were put forward against this corporation. The Ministry of Finances of the USA has informed the management of Halliburton about renewal of investigation of illegal trade with Iran.
Sources from the Ministry declared that the investigation will be continued in connection with appearance of new evidences of illegal activity of the company in 1995 - 2000, when the present Vice-President of the USA Mr D. Cheyni headed it. He received service benefit by $36 MM when retired and began to work in White House.
On February, 24 approximately in 20 towns of the USA the company of protest against the activity of corporations Halliburton an Bechtel passed. This event named "The National Day of Action Against Corporations Profiting in Iraq" was organized by a number of left - liberal organizations. Amongst other things, sharp hostility to the present administration and large business unite them, especially to Halliburton and Bechtel, which by the words of activists are closely connected with the White House. Besides of already known relations of the Vice-President of Mr. Richard Cheyni with Halliburton, two members of direction of Bechtel enter groups of advisors of White House and Pentagon.
LUKOIL INTERNATIONAL TRADING & SUPPLY WILL BUY THE SECOND MARCH PARTY OF OIL OF THE SOCAR
As Media-Press has been informed in the Office of Marketing and Economic Operations (OMEO) of the SOCAR, LUKoil International Trading & Supply has become a winner of tender on purchasing of the March party of the Azerbaijan oil by a volume of 80 thou tons. Its shipment from the port Novorossiysk is planned by the third decade of March.
On March the SOCAR plans to transport 210 thou tons of oil by the pipeline Baku - Novorossiisk as on January and February. The companies Total and Gelencore purchased two January parties of oil and Sonol and Vitol Broking - the February ones.
The SOCAR has approved the volume of the Azerbaijan oil export volumes by a route Baku - Novorossiisk on a level of 2003 - 2.5 MM tons. In accordance with the intergovernmental agreement between Russia and Azerbaijan on oil exportation signed on January 1999, it automatically is prolonged every year if one side does not inform another one before a half of a year about its intension to stop its operation. Each five years the sides may introduce changes to agreement.
THE SOCAR HAS DEVELOPED THE PROGRAM OF USING OF ALTERNATIVE SOURCES OF ENERGY ON THE OIL AND GAS FIELDS
By his words, the annual demand of oil and gas production companies of the SOCAR makes 1.2 bn KWt/hours and $38 - 40 MM are spent from the means of the oil company.
The project has been separated in two phases. The first one provides for mounting of wind electric power station by a capacity of 1 MVt in the OGPC by the name of A. Amirov. During the year the analysis of its operation will be made. The second phase provides direct production of these installations in Azerbaijan.
By the words of Mr. E. Shakhbazov, one such installation costs $750 thou, however if their production would be adjusted in Azerbaijan, they will be cheaper by 35 - 40%. The production of wind electric stations may be adjusted on the Baku Plant of Deep Water Bases, where there necessary conditions. For autonomous supplying of all the OGPC by the electric energy, 300 - 350 similar installations would be necessary. However, one electric station would be able to produce 5.5 MM kWt/hours of electric energy.
As to financing of the project, Mr. E. Shakhbazov has noted that it would be carried out for means of the SOCAR, the Program of Development of the UNO and partially by the German side. By accounts, self-repayment of the project makes 6 - 7 years.
THE START OF THE COMMERCIAL OIL PRODUCTION ON THE FIELD KASHAGAN ON THE CASPIAN SHELF IS PLANNED FOR 2007 - 2008
"In accordance with the approved plan, in 2010 the volume of oil production on the field will make 21 MM tons, in 2013 it will increase in two times and reach 42 MM tons, and in 2015 the volume of production increase up to 56 MM tons - Mr. D. Akhmetov has declared. - Thus we state that Kazakhstan becomes the oil power", - the Premier has emphasized.
The Minister of Energy and Mineral Resources Mr Vladimir Shkolnik answering at the questions of journalists has explained that the compensation for transferring of terms of the commercial terms of commercial oil production on Kashagan are "direct money being paid out to the Republican budget and distributed by a time up to the beginning of the commercial production".
As it was informed earlier, by the conditions of the agreement concluded between Agip KCO and government of Kazakhstan, the oil production on the field Kashagan should start in 2005. However, Agip KCO suggested to the Government of Kazakhstan to pay out the compensation by a total of $150 MM for agreement to postpone the start of oil production on the field up to 2007.
The Consortium Agip KCO unites BG Group, ExxonMobil, Inpex Masela Ltd., Conoco Philips, Shell and Total. The first oil on the Kashagan field was found on the well Vostok - 1 in the summer of 2000. Revealed supplies of the field make 1.5 bn tons. The field "Kashagan" is one of the largest in the world, which were opened during the last 30 years with geological oil supplies by a volume of 4.8 bn tons. The development of the field will be carried out in the difficult geological conditions with anomalous high stratum pressure and high content of hydrogen sulfide. Severe climatic and hard ecological conditions in shallow water zone of the North Caspian Sea cause acceptance of new technical and technological decisions.
THE AGREEMENT ON THE TURKISH-GREEK GAS PIPELINE HAS BEEN RATIFIED
The gas pipeline with length of 285 km would be laid from the Turkish town Karachabey through the Sea of Marmora across the territory of Greece. 209 km piece of the gas pipeline, which would be laid through the Turkish territory, would cost $80 MM. The expenses of the Greek side for the construction of the remained 76 km would make $15 MM.
By plans the construction of the gas pipeline would be completed in 2006 and on October of the same year, as Media-Press has informed, the deliveries of the Azerbaijan gas to Turkey by the gas pipeline Baku - Tbilisi - Erzurum would start. The Azerbaijan gas would be delivered not only to Greece but the other European countries just from Turkey. Greece itself intends to import up to 3 bn cubic meters annually through Turkey, while the consumers from France, Italy and Balkan countries determine their import capacities.
As the experts have noted repeatedly, it would be possible to export up to 30 bn cubic meters of gas per a year by the pipeline, which will connect the gas systems of Turkey and Greece in the next future and pass further to Europe. And it will pass in two trends: the first - France, Austria and Italy, the second - Slovenia, Bosnia and Herzegovina and Croatia. We shall remind that a year ago in the end of November 2002 the officials of BOTAS and some other European gas companies (the Bulgarian BulgarGaz, Romanian Petrom, Hungarian MOL, Austrian OMV Erdgas GmbH and company Transgaz) in Sofia already discussed issues of gas deliveries from Turkey to Austria and Hungary through territories of Bulgaria, Romania. And it is similar that these plans receive concrete shape.
By predictions of the International Energy Agency in the next three ten years the gas consumption in Europe will increase almost in two times; so already now the active struggle for "the place under the Sun" is gone. For the present it is not clear, who will be the main exporter. Turkey, whose gas volumes provided by contracts exceed its demands, and Iran, which occupies the second place within the world on supplies of this fuel intend to re-export "the blue fuel" to Europe through the territory of Greece. Azerbaijan and Turkmenistan also plan of gas exportation to Europe as well as Russian and even Ukraine. Furthermore, Greece also announced about the intension of its transformation into the regional gas knot.
As to Turkey, its conducts complex and well designed play in multivector pipelines. The main goal of this game was declared repeatedly by Ankara: transformation of Turkey into the gas re-exporter. It already has agreed with Greece on annual deliveries of 500 MM cubic meters of gas to this country up to 2005. The cost of the project is estimated by $300 MM, and it is planned to realize it up to 2005. The Turkish and Greek pipelines companies BOTAS and DEPA will be engaged in realization of this project. Not long time ago as well the Italian company Edison Gas, which since some time has been active participant of gas intrigues played in the region has joined to them.
We shall remind that BOTA actively cooperate with the Greek DEPA, and prepares the project (with a cost of $300 MM) on re-export of gas received by Turkey to Europe through the territory of Greece jointly with it. Two countries plan to connect their gas transport systems. DEPA is ready to be engaged in the realization of existing already agreements with the Turkish side on the construction of the gas pipeline Ankara - Alexandroupolis by the end of 2004. Branches from it would possibly be made for deliveries of "the blue fuel" to France, Austria, Italy, Slovenia, Bosnia and Herzegovina. As to demands of Greece, it accounts import up to 3 bn cubic meters of gas per a year through Turkey meanwhile consumers of France, Italy and the Balkan countries for the present define their capacities of import.
Meanwhile, the struggle under the European gas sun is in active progress. Iran with its large gas supplies (as the officials of Tehran confirm, its volumes make 18 trln cubic meters) intends to start export of its "blue fuel" through Turkey and Greece already in 2007. We shall remind that Iran has not large sale markets for the present and so it tries to get the European gas market. And the European Union supports these steps. It welcomed the signing of the agreement on gas deliveries from Iran to Europe through Turkey and Greece and allocated $10 MM for working out of the feasibility report of this project. We shall remind within frameworks of this context that the Iranian National Oil Company and the Greek DEPA already have signed the memorandum on mutual understanding with a concrete content.
PRICES FOR OIL TANKERS FREIGHTAGE GROW ON THE WORLD MARKET
Never for the last 30 years the sea oil transportation cost so high. At the same time the specialists consider that the freightage deliveries will grow quickly and in future.
ITAR-TASS confirms that freightage prices increase is connected with that Turkey tightened regulations on traveling of ships through straits Bosporus and Dardanelles and new measures of ecological safety. However at the same time ITAR-TASS contradicts to itself when it notes that this tendency is usual not only for the Black Sea - Mediterranean region. So fo a year the price for delivery of one barrel of oil from the Middle East to the ports of the South-East Asia has grown by 300%. At the same time lack of oil tankers is registered.
By estimations of experts, rise in prices for transportation affects on appreciation of oil, cost of which is kept stably within frameworks of $30 for a barrel.
"AZERNERJI" CONDUCTS REPAIRS OF HIGH VOLTAGE TRANSFORMERS
Besides, repairs of two transformers on the substations "Gyanja -1" and "Janub" is conducted. These transformers were broken still in 1986 and 1988 correspondingly. After completion of their repairs they will be included in the reserve fund and used during repairs.
Officials of the JC noted that repairs of these transformers would save significant means as purchasing of new ones abroad costs several ten thousand dollars.
SINCE 2005 AZERBAIJAN BEGINS REDEMPTION OF CREDITS OF THE WB
As Media-Press has been informed in the Baku Office of the WB, the first credit agreement between the WB and the government of Azerbaijan was signed in 1995. In the next year the favorable period on this credit expires. As a rule all credits of the WB received by Azerbaijan provide redemption in 10 years.
Totally 19 credit agreements on different projects have been concluded between the WB and the Government of Azerbaijan by a total of $600. 14 projects are in the realization stage; five of them have been completed. The largest credit by a total of $76.85 MM was allocated for realization of the project of structural reformation SAC-II. The significant part of credits of the WB was transferred to restoration of infrastructure - water supplying of Baku, rehabilitation of gas economy, restoration and development of irrigation system and construction of cars.
The International Development Association (IDA - the WB's structure) has allocated all these credits. Now the WB considers an opportunity of credit allocation to Azerbaijan by the International Reconstruction and Development Bank (IRDB). This structure allocates credits in more strict conditions to countries having income exceeding $800. Allocation of credits by two structures of the WB serve evidence about that Azerbaijan becomes a creditable country. The IDA allocates credits for 35 years with 10 years favorable period and the IRDB - for 15 years with 5-year favorable period. The rates of IRDB on credits are higher than the IDA.
For example, it is expected that the IRDB will allocate most likely the credit by a total of $40 MM for development of electric energy of Azerbaijan. By the words of the official of the WB Mr. Akbar Nowman, the IRDB allocates credits to only the most developed countries amongst of the developing countries. Turkey, the Middle East countries, Latin America and China are included in this list. "Azerbaijan also becomes one of these countries and we are able to allocate credits of the IRDB to it. However taking into account that Azerbaijan is poor enough for the present and the GDP production per capita is small, Azerbaijan may receive credits by two lines of the WB. However, if to consider rates of development, it is possible to say that in determine period Azerbaijan will not need in favorable credits", - the Chieff of the Baku WB Office has emphasized.
THE OFFICIAL OF THE RUSSIAN MARITIME REGISTER: AN AREA FOR FINISHING OF WRITTEN OFF SHIPS IS REQUIRED
By his words, up to 1988 77 ships were written off. Now 28 ships are in authority of the Ministry of Ecology and Natural Resources and 11 ones of them should be written off. "Caspmornefteflot" intends to write off else 20 ships. Thus, total amount of written off ships in Azerbaijan would make soon 120. All these ships remain in the sea, rust and seriously damage ecology, Mr. D. Shestakov thinks.
By his words, in the world written ships are sold to ship preparation companies or are used as scrap-metal. In Azerbaijan the law forbids metal transportation abroad and so foundation of native ship Preparation Company is required.
In answer the Minister of Ecology and Natural Resources of Azerbaijan Mr. Guseyn Bagirov has said that rusting ships in the Caspian Sea damage the sea not only in ecology, but also rather esthetically. For example, in accordance with the last foreign investigations, out-of-date offshore platforms affect favorably on the marine environment as become places of birds nesting. Moreover, as the Minister has noted, now negotiations with the Baku Steel Welding Company are held, and it will be engaged in lifting of sunken ships and preparation of written off ships.
And as to the contamination of the Caspian Sea, Mr. G. Bagirov thinks, a share of written off ships is minimum, meanwhile 85% of offshore contamination, according to the Russian sources, makes a share of Volga, which carries industrial wastes to the Caspian Sea including ones of oil and gas development in Tatarstan and Bashkiriya and domestic wastes of 70 MM residents living in the bank of this river.
THE MINISTRY OF ECOLOGY OF AZERBAIJAN AND BP WILL DISCUSS ISSUES OF KEEPING ECOLOGICAL NORMS IN THE DEVELOPMENT OF THE FIELD "AZEI - CHIRAQ - GUNESHLI"
As the Ministry of Ecology of Azerbaijan Mr. Guseyn Bagirov has informed, cases of discarding of drilling solutions on a synthetic base to the sea during drilling works. "If these solutions are thrown away to the sea, this is breaking of law. This should not occur, otherwise these substances should be of small toxicity.", - he has noted. At the same time the Minister has emphasized that the company BP - Azerbaijan, presented this information.
We shall remind that earlier the Ministry of Ecology has been prepared relevant documents relatively to the Company BP - Azerbaijan. Then Mr. G. Bagirov informed that all documentation was presented to the company and if it display its readiness for pay out fine, this issue would be adjusted. In opposite case the Ministry will bring an action. By his words, the fine total to BP-Azerbaijan may vary from 500 MM up to 1bn manats ($100 - 200 thou).
