THE NATIONAL BANK OF AZERBAIJAN HAS ANNOUNCED ABOUT MAIN TRENDS OF THE MONETARY-CREDIT POLICY FOR 2004
BAKU.07.01.2004.MEDIA-PRESS: The National Bank of Azerbaijan (NBA) has announced about main trends of the monetary-credit policy for 2004 and prior objects for 2005 - 2006.
BAKU.07.01.2004.MEDIA-PRESS: The currency reserves of the National Bank of Azerbaijan (NBA) have increased by $77 MM (11.32%) for the past year and made $757 MM. As Media-Press has been informed in the press-service of the NBA, this total is sufficient for 5-year import payment.
BAKU.07.01.2004.MEDIA-PRESS: The government of Azerbaijan considers the issue on double increasing of the minimum salary (MS) (up to 120 thou manats) by the end of 2004. The Chief of the Parliament Comission on the Social Policy Mr Khadi Rajjabli has told about this.
BAKU.07.01.2004.MEDIA-PRESS: The Minister of Finances of Azerbaijan Mr. Avaz Alekperov will visit to the USA on February 19, where the sitting of the Azerbaijan-American working group would be held.
BAKU.07.01.2004.MEDIA-PRESS: In the next time Azerbaijan plans to import 100 thou tons of grain and meal from Russia, the first Vice-Premier of the country Mr. Abbas Abbasov has informed.
BAKU.07.01.2004.MEDIA-PRESS: The issue of executing liabilities taken at the joining to the European Council by Azerbaijan is discussed today at the sitting of the Monitoring Committee of the Parliament Assembly of the EC in Paris. The Chief of the Information Department of the EC Office in Baku Mrs. Ayten Shirinova has informed about this.
BAKU.07.01.2004.MEDIA-PRESS: The third part of the Azerbaijan peace makers has been replaced in Iraq. As it has been informed by the Ministry of Defense of Azerbaijan, this is the planned replacemen of the staff and has been caused by that 53 servicemen has completed their active services. And on the eve servicemen substitutig for them were sent to Iraq.
BAKU.07.01.2004.MEDIA-PRESS: Almost week interruption in the construction of some objects of the Georgian piece of the Main Exporting Pipeline (MEP) Baku-Tbilisi-Ceyhan caused by the strike of the workers demanding the salaries increase had not amended seriouslly the schedule of the construction of this oil pipeline, its orgainizers confirm.
BAKU.07.01.2004.MEDIA-PRESS: The company BP-Azerbaijan has started the geophysical reacearches of the second advanced bore hole on the gas condensate field "Shakh-Deniz".
BAKU.07.01.2004.MEDIA-PRESS: The state oil company of Azerbaijan delivered 4.294 bn cubic meters of the natural gas in 2003. The SOCAR delivered 3.574 bn cubic meters of them; the JC delivered 74.4 MM cubic meters and the Azerbaijan International Operating Company (AIOC) - 720.4 MM cubic meters.
BAKU.07.01.2004.MEDIA-PRESS: The Azerbaijan Company Middle East Petroleum has purchased 30% of sharing in the contract on the development of the onshore field Pirsagat, the Baku Chinese Office of the Chinese Company Shecng Li, which is the project operator informed the Agency "Interfax-Azerbaijan".
BAKU.07.01.2004.MEDIA-PRESS: By the operative information in 2003 the volume of the oil production and gas condensate in Kazakhstan made above 51.275 MM tons and this is by 8.6% more than the analogous rate of 2002. 5.945 MM tons (14.5% from the rate of 2002. Within this number 5.945 MM tons of gas condensate have been produced (14.5% from the rates of 2003).
BAKU.07.01.2004.MEDIA-PRESS: In Iran new oil field has been opened. It is situated in the province Isfahan not far form the town Kashan, the Director of the Geological Exploration Department of the Ministry of Oil of the IRI Mr. Makhmud Mohaddes has reported.
BAKU.07.01.2004.MEDIA-PRESS: In 2003 21.15 bn kWt/hours were produced and this is by 10.42% higher than in 2002.
BAKU.07.01.2004.MEDIA-PRESS: On December 2003 the heating electric power station consumed 382.08 gr. of the conditional fuel for production of 1 kW/hour of the electric power. This is by 4 gr. less than planned fuel consumption and in account of this 10.556 thou tons of the conditional fuel were saved.
BAKU.07.01.2004.MEDIA-PRESS: By preliminary information, in 2003 the Azerbaijan state budget deficit made 120 bn manats or 1.9% from expenses.
In accordance with the prepared document, the monetary-credit policy of the NBA in 2004 would be directed for maintenance of the macroeconomic stability, economic growth and poverty reduction.
The inflation rates in the current year would be supposedly kept at a level of 2.5% in the current year and maintained at a level of 2 - 3%.
By the predictions of the NBA, the monetary mass in 2004 would be increased by 28% at an optimal development of events. In 2005 - 2006 when the currency income of the country would be increased sharply and the rates of the monetary mass increase would make 29 - 33%. Totally during 2004 - 2006 the monetary mass should increase in 2.2 times and make 5.5 trln. Manats.
Expectedly, in 2006 a volume of deposits would grow sharply. This is connected with that in 2005 deposits insurance mechanism would be introduced and this increase trust of population to banks. At the same time growth of currency flow would occur mainly in account of direct foreign investments, a volume of which is forecasted by a level of $4.4 bn.
The rate policy in the current year would be carried out in the softly regulated regime. The average annual rate of the US dollar would be increased up to 4975 manats. If the favorable world prices for oil are kept, the currency reserves of the NBA would reach $800 MM in 2004 (In 2003 they made $757 MM).
In 2004 it is supposed to complete the centralized credit list, transferring of banks to the international standards of the accounting. Moreover, the state program on the further development of the national payment system would be developed.
THE CURRENCY RESERVES OF THE NATIONAL BANK OF AZERBAIJAN ACHIEVED $757 MM BY THE END OF 2003
In 2003 $82.7 MM were spent in 2003 for redemption of debts on foreign credits. Moreover $65.4 MM were transferred for payment of the Azerbaijan share in the construction of the pipeline Baku - Tbilisi - Ceyhan to the State Oil Fund.
The growth of the currency funds of the NBA was provided mainly in account of purchases of the currency in the internal market. In 2003 the intervention of the National Bank at the currency market allowed prevent revaluation of the national currency rate in conditions of foreign currency to the country.
Taking into account tendencies, which were registered in the world economy and finance markets, the NBA carried out diversification of the resources in 2003. The official rate of dollar in relation to manat has grown by 30 manats that is by 0.6% and made 4923 by the end of the year. For comparison we should note that in 2001 this fall down of the national currency relatively to dollar made 210 manats (4.6%) and 118 manats in 2002.
THE GOVERNMENT OF AZERBAIJAN CONSIDERS THE ISSUE OF DOUBLE INCREASING OF THE MINIMUM SALARY UP TO THE END OF 2004
Since January 1, 2004 the minimum monthly salary makes 60 thou manats and before it made 47.5 thou manats.
"At the present time the government considers a question on increasing the MS up to 120 thou manats by the end of 2004. In Azerbaijan, as the country, which joined to the European Social Chart, the level of the MS should be equal to the volume of consumer basket", - Mr Kh. Rajjabli has said. By his words, in accordance with the plans of the government, by 2006 the volume of the MS would possibly achieve a level of the consumer basket cost.
Earlier the Chief of the State Social Protection Fund of Azerbaijan Mr. Salim Muslimov has declared that the process of the MS increasing in the country would be continued with a purpose of bringing it to a level of life minimum. According to the State Program of Poverty Reduction and Economic Development Assistance accepted on February 2003, a poverty level in Azerbaijan has been determined on a level of 120 thou manats monthly.
The official rate of exchange by January 6 makes 4924 manats/$1.
ON FEBRUARY THE MINISTER OF FINANCES WOULD DISCUSS ISSUES OF COOPERATION IN THE USA
As the Agency "Interfax-Azerbaijan" has been informed in the Ministry of Finances, issues of the economic cooperation between Azerbaijan and the USA will be discussed at the sitting working group. Particularly, the negotiations should determine, in which economic spheres would the American aid be rendered. There are insurance, agriculture, strengthening of the boundaries are amongst of the main priorities of the Azerbaijan side", - the official of the Ministry of Finances has said.
During the visit to the USA, Mr. A. Alekperov would conduct negotiations with the officials of the Agency of the International Development of the USA (USAID) about causes of the delay of the realization of the project on the automation and modernization of the state treasury system in Azerbaijan. The main tender had been conducted already on this project on delivery of the program providing. However, for the present the Ministry of Finances is not able to publish its results for questions and recommendations, which appear constantly at legal experts in Washington. The WB has allocated $2.095 MM for the automation of the State Treasury and the US government provided grant by a total of $2.6 MM.
Mr. A. Alekperov is co-chairman of the commission from the Azerbaijan side. On May 15, 2003 the sitting of the working group was held in Baku.
AZERBAIJAN WOULD PURCHASE 100 THOU TONS OF GRAIN FROM RUSSIA
"At the assistance of the Government the Azerbaijan companies plan to purchase 100 thou tons from Russia and 100 thou tons of meal", - Mr. A. Abbasov has said.
By his words, improvement of the population supplying as well as increase of the country reserves is a chief goal of the grain import.
Now transportation of the next party of grain for Azerbaijan by a volume of 50 thou tons is carried out from Kazakhstan and it would be delivered to the country on January. Up to May 2004 300 thou tons of grain would be purchased by a schedule.
Mr. A. Abbasov has noted that "some producers and importers purchase and prepare grain and meal in sufficient amount". "It is difficult to understand them, because there is not a bread deficit in Azerbaijan, but they form it artificially", - the first Vice-Premier has emphasized.
50 thou tons of grain were imported by Azerbaijan during December, 2003.
In autumn of 2003 Azerbaijan also had purchased grain from Kazakhstan for covering the grain deficit emerged for an unfavorable weather.
By the results of the past year, the grain production in Azerbaijan made almost 2 MM tons; the annual grain demand of the country reaches 3 MM tons.
The deficit at the inner market is covered mainly in account of import from Kazakhstan, Russia and Ukraine.
IN PARIS THE MONITORING COUNCIL OF THE PAEC DISCUSS THE ISSUE OF EXECUTING LIABILITIES TO THE EUROPEAN COUNCIL BY AZERBAIJAN
By her words, the co-reporters of the Monitoring Council on Azerbaijan Mr. Andreas Gross (Switzerland) and Martinez Kassan (Spain), reporter of the PAEC on the Elections of the President of Azerbaijan Mr. Daniel Gule (France) and reporter on political prisoners in Azerbaijan Mr. Malcolm Brus (Great Britain), which had visited Baku in the end of November - beginning of December, 2003 in a course of their expert trips would present their preliminary reports on situation with executing the liabilities within frameworks the EC recommendations by Azerbaijan.
The final version of the report on liabilities of Azerbaijan would be discussed at the winter session of the PAEC, which would start on January 26 in Strasbourg.
We shall remind that the term of executing of liabilities to this European structure by Azerbaijan, which joined to the EC in 2001, expires on January 2004.
As the member of the Parliament group of Azerbaijan in the PAEC the deputy of Milly Mejjlis Mrs. Gultekin Gajjieva has declared to the RIA "Novosty", during the forthcoming sitting of the MC of the PAEC the Azerbaijan side would expect its successful report to the EC". By her words, many steps had been done for this, especially in the laws field."
Paticularly, the deputy has noted that on the days the following laws "About the Struggle Against the Corruption" and "About the Public TV and Radio Broadcasting" would be accepted in the third reading and the Convention on trans-boundary Cooperation would be discussed by the Parliament and the State Program of the Struggle Against the Corruption would be accepted.
By the words of Mrs. G. Gajjieva, only in the issue of the acceptance of the law "About the Alternative Military Service", the Azerbaijan keeps the principal position. "The EC demands the soonest acceptance of this law. However, taking into account that a part of the Azerbaijan territory was occupied by Armenia and we have a problem of their liberation and the military way of this is not excepted, and the acceptance of this law would be able bring to appearance of problems with call to army of persons, which refuse of military service for their religious beliefs", - Mr. Gajjieva has explained. And the Deputy expressed her hope that "the EC would understand the Azerbaijan position in this issue".
As well she emphasized that the Amnesty Edict signed by the President of Azerbaijan Mr. Ilham Aliyev on the days, "has become a turn moment in removal of intensity emerged between Azerbaijan and EC". By here words, the EC "estimated very highly this document and I'm sure that the officials of the EC would express their respect to the Edict".
"For a short time Azerbaijan made many serious steps in execution of its liabilities to the EC and we hope and their results would be successful for the country", - the member of the Parliament Group of Azerbaijan in the EC has emphasized.
THE THIRD PART OF THE AZERBAIJAN PEACEMAKERS HAS BEEN REPLACED IN IRAQ
The officials of the Ministry of Defense as well disproved information of some the Baku mass media about appearance of serious problems with the food and equipment supplying at the Azerbaijan peacemakers.
The Azerbaijan peacemaker contingent was located in Iraq since the middle of August of the past year and numbers 150 soldiers and officers.
EVEN A STRIKE WOULD NOT STOP THE CONSTRUCTION OF BAKU-TBILISI-CEYHAN
"A volume of the construction works on the Georgian piece of the MEP, the building of which started on April 2003, have exceeded $33 MM by today", - it is informed in the press-release of the Georgian International Oil Corporation (GIOC).
By the information of the GIOC, the construction route of the Georgian piece of the oil pipeline, which would make 248 km have been prepared at a length of 112 km. At the same time 87 km of the pipeline had been laid already and welded at a length of 80 km.
According to the same information, more than three thou citizens of Georgia are engaged directly in the construction of the pipeline and up to 16 thou persons take part in the infrastructure maintenance of the project and rendering different services.
The construction and engineering materials by a total of about 5.1 MM lari were purchased from the Georgian companies.
Batum and Poti sea ports received 7.3 MM lari for the reception, storing and shipment of cargos for the construction of the MEP. Earnings of the Georgian railway made almost the same total for trasportation of these cargos by the territory of Georgian as well to Azerbaijan.
The construction of the oil pipeline Baku - Tbilisi - Ceyhan should be completed in the end of 2004. Its total length makes 1760 km. A cos of the project makes $2.95 bn.
THE GEOPHYSICAL RESEARCHES OF THE SECOND ADVANCED BORE HOLE HAVE BEEN STARTED ON THE FIELD "SHAKH-DENIZ"
As Media-Press has been informed in the company, the bore hole had been drilled up to a depth of 6500 m and it is not excepted that it would possibly be drilled further up to 7000 m. The complete solution would be accepted after completion of the researches.
The second advanced bore hole was based in the northern-eastern wing of the field "Shakh-Deniz", where a dept of the sea makes 101 m. The company Caspian Drilling Company conducts the drilling works from the floating semisubmersible drilling rig "Istiglal".
Since the completion of the sinking BP-Azebaijan would start the drilling of the third advanced bore hole and it should take about six months by schedule.
The program of advanced drilling on the field "Shakh-Deniz" provides a drilling of three wells.
"Stage-1" of the development of the gas condensate field "Shakh-Deniz" with a cost of $3.2 bn includes
installing of the platform at a sea depth of 105 m, the construction of two underwater pipelines with a length of 100 km of each from the platform towards to the Sangachal terminal as well the construction of the South-Caucasian gas pipeline Baku - Tbilisi - Erzurum. The production of the primary gas from the field "Shakh-Deniz" is planned by the mid of 2006.
The "Stage-1" of the development of the field provides the production of 178 bn cubic meters of gas and 34 MM tons of condensate. The maximum production will make 8.4 bn cubic meters of gas and 2 MM tons of the condensate per a year.
BP (25.5%), Statoil (25.5%), the SOCAR(10%), LUKAgip(10%), OIEC (10%), TotalFinalElf (10%) and TRAO (9%) are the participants of the project "Shakh-Deniz". The supplies of the field "Shakh-Deniz" are estimated approximately by 1trln cubic meters.
IN 2003 THE SOCAR TRANSFERRED 4.294 BN CUBIC METERS OF GAS TO THE STATE
2.126 bn cubic meters of the mentioned volume have been delivered to the system of the JC "Azerigaz" and this is by 14.9% higher than it had been provided by plan. The rest 2.168 bn cubic meters were transferred to the Azerbaijan Gaz Processing Plant (AGPP). This is by 9.6% less than it had been provided by plan.
For satisfying the demands of Azerbaijan up to 10 bn cubic meters of gas are required annually. In the past year Azerbaijan has purchased 4 bn cubic meters of "the blue fuel" from the international group of companies "Itera". The gas import of "Itera" would make the same total in this year too. Else one agreement with "Itera" has been signed; it provides delivery of 1.5 bn cubic meters of gas to the JC "Azerigaz". However, this contract for the present has not been for lack of necessary means of Azerbaijan.
The republic will receive the subsidiary volumes of gas also since within the frameworks of the project of extension of the Sangachal oil terminal the gas drying installation will be installed. Today all oil delivered to the terminal is separated from water and gas. Received gas is liquated. The construction of new installation would not allow liquating gas, but delivering it to the State Oil Company of Azerbaijan, which in its turn will deliver it to consumers. Gas will be burned in flames only in emergencies. For realization of this idea the SOCAR also plans to build special gas receiving installation and the pipeline up to the Sangachal gas distribution point.
THE AZERBAIJAN "MIDDLE EAST PETROLEUM" HAS PURCHASED 30% IN THE PROJECT ON THE DEVELOPMENT OF THE FIELD PIRSAGAT
Sharing of Sheng Li makes 50% and the State Oil Company of Azerbaijan (the SOCAR) shares 20%.
"Tripartite agreement between Sheng Li, Middle East and the SOCAR was signed. The distribution of free 30% allowed entering of the contract into full force and start of works", - the officials of the company have told.
The Company Middle East Petroleum enters into the Azerbaijan Azersun Holding and specializes on the oil transportations from Kazakhstan to Turkmenistan. Besides, Azersun Holding is engaged in the production of foods and packages. Total investments of the Holding to the economy of Azerbaijan exceed $100 MM.
The agreement between the SOCAR and Sheng Li on rehabilitation, exploration and production sharing on the oil field Pirsagat was signed on July 4, 2003. The Parliament of Azerbaijan ratified the contract on December 2 and in the same day the President of Azerbaijan Mr. Ilham Aliyev signed the contract.
The contract is accounted for 25 years and there is an opportunity of its prolongation by else 5 years. The Chinese company should prepare and present the program on the production restoration since 180 days will expire. The exploration period makes 3 years and during them two-dimensional exploration should be carried out and two exploration wells should be drilled. Besides, Sheng Li took a liability for itself of double improvement of the current level of production on the field during the first 2 years.
According to contract conditions, Azerbaijan would receive from 40 up to 90% from total profits on the project. Investments would make %140 MM.
The company Sheng Li would pay out bonus by a total of $1 MM for signing during 30 days since entering into force of the contract. Besides, Sheng Li should pay out bonus of $500 thou at exceeding by the production volume in 1.5 times comparatively with 2002. Bonus for each produced 100 MM bbl of oil makes $10 MM.
The onshore field Pirsagat (60 - 63 km to the south-west from Baku) with an area by 38 sq km is situated near the Caspian coast. It is within OGPO (Oil and Gas Production Office) by a name of Mr. F. Amirova and was developed since 1985. The fund of well makes 25 units. 10 of them are operated and the average annual production here makes 8 thou tons of oil. Remained balance oil supplies make 7 MM tons.
Sheng Li is the branch of the Chinese Oil-chemical Corporation SINOPEC. The Company develops the second field by dimensions within China with an annual production volume by 27 MM tons of oil and also conducts oil production in Venezuela, Iran, Algeria and other countries.
IN 2003 KAZAKHSTAN PRODUCED ABOVE 51 MM TONS OF OIL AND GAS CONDENSATE
As the Agency of the oil information (ANI) has been informed in the government of the country, the companies with sharing of the National Company "KazMunayGaz" produced 20.384 MM tons of oil during the year (3.7%). The JC "Tengizshevroil" had produced the major part of oil - above 12.748 MM tons (by 3% less than the rates of 2002) and Karachaganak Petroleum Operating Co.
THE NEW OIL FIELD HAS BEEN OPENED IN IRAN
By the words of Mr. Mr. Mohaddes it is the first oil field in the central area of Iran and contains light oil, which has especial demand in the world.
The contract on the exploration and development of this field was concluded with the Chinese oil and chemical corporation SINOPEC three years ago and a drilling was started in spring of the past year.
As Mr. Mr. Mohaddes has noted, the industrial production on this field is possible, however additional researches would be required for determination of oil supplies.
The main oil supplies in Iran are situated in the South of the country and the Persian Gulf. Discovery of the field in the central area of Iran provides a hope that oil is as well available in the other regions of the country.
Iran provides concessions on development of 51 oil areas. In the past year 500 MM bbl of oil and 74 bn cubic meters of natural gas were explored.
For the last six years 7.6 bn bbl of oil have been produced and new fields with estimation supplies by 11.5 bn bbl have been explored.
Total oil supplies of Iran make 130 bn bbl. This makes 12% from all the world ones and 15% from the oil supplies of the OPEC countries.
FOR A YEAR THE PRODUCTION OF THE ELECTRIC POWER INCREASED BY 10.2% IN AZERBAIJAN
On December the production of the electric power made 2.204 bn kWt/hour and 1.998 bn kW/hour were produced at the SREPS and the HEPS produced 205.662 MM kWt/hour.
By the information of the Central Dispatching Service of the JC "Azerenerjji" the production of the electric energy on December 2003 increased by 5.2% in comparison with the analogous period of 2002. The production of the heating energy made 88573 Gkal
In spite of the every year constant increase of the electric power production in Azerbaijan there is still a lack of it here, especially in regions. Its intensive consumption for heating of houses is the main cause of the lack and it consequently brings to overloading of networks and breakage of the equipment.
The imperfection of system formin substations of high voltage is the other cause. We shall remind that in the beginning of February 2003, the agreement between the German KFW and the JC "Azerenerjji" on allocation of the credit by 17.3 MM evro for reconstruction of the trasmission capacities and introduction of the modern dispatching system for managing the energy system of Azerbaijan was signed.
Mastering of the credits is provided for 2003 - 2004. About 2.5 MM evro would be spent for the introduction of the dispatching system within the frameworks of the project. As well a technincal reequipping of 13 system forming substation of high voltage is planned. By opinions of specialists, this would allow reducing electric power losses by 20 - 25% during its tranmission.
IN 2003 THE JC "AZERENERJJI" SAVED 388.5 THOU TONS OF THE CONDITIONAL FUEL
As it was noted in the JC "Azerenerjji" the economy was achieved at all the SPEPS and this is consequence of the timely conducted repairs-restoration works. The SREPS "Azerbaijan", Aly-Bayramaly and "Severnaya" SREPS operated most economically.
As a whole in 2003 the system JC "Azerenerjji" saved 388.556 thou tons of the conditional fuel.
IN 2003 THE AZERBAIJAN STATE BUDGET DEFICIT APPEARED LOWER THAN IT HAS BEEN EXPECTED
As it is told in press release of the Ministry of Finances, the incomes of the state budget made 6.1103 trln manats or 100.3% from the schedule. In comparison with 2002, this rate has grown by 1.56 trln manats.
The expenses of the state budget made 6.2303 trln. Manats or 97% from the plan. In comparison with 2002, the expenditures grew up by 1.707 trln. Manats.
In accordance with the law "About the State Budget for 2003" the incomes were approved by a total 6.092 trln manats, incomes - 6.423 trln. Deficit - 331 bn manats or 1% from the GDP.
The official rate of exchange by January 6 makes 4924 manats/$1.
