THE FIRST TEST OPERATION OF THE FIRST PHASE OF THE PROJECT "SOUTH PARS" HAS STARTED
BAKU.01.03.2004.MEDIA-PRESS: The Iranian authorities intend to announce about a start of realization of the first phase of the project of the development of gas field "South Pars" after getting of the plan production gas volumes.
BAKU.01.03.2004.MEDIA-PRESS: In 2003 China imported 91 MM tons of crude oil and this exceeds the rate of 2002 by 31%. The President of the Chinese Association of Oil and Chemical Industry Mr. Tan Chjuchjou has declared about them.
BAKU.01.03.2004.MEDIA-PRESS: The Minister of Labor and Social Protection of the Population has announced the tender on the construction of three floor house in the Geokchay Region of Azerbaijan for invalids of the Karabakh war. After the completion of the construction 21 family will be provided for flats after the construction.
BAKU.01.03.2004.MEDIA-PRESS: Today the two-day official visit of the President of Azerbaijan Mr. Ilham Aliyev to Kazakhstan has started.
BAKU.01.03.2004.MEDIA-PRESS: The President of Azerbaijan Mr. Ilham Aliyev thinks that for the present it would be untimely to think about foundation of the structure alternative to the OPEC in the Caspian region. The President of Azerbaijan has expressed his opinion in the interview to the journalists in the international airport "Bina" before departure to Kazakhstan with two days official visit.
BAKU.01.03.2004.MEDIA-PRESS: Six enterprises of the opened JC "Azneftekhimmash" have received a right to mark their production in accordance with the international standards ISO (The International Standardization Organization) and API (The American Petroleum Institute) by the results of the international auditor checkings.
BAKU.01.03.2004.MEDIA-PRESS: The operator of the development of the contract area "South-West Gobustan" the Gobustan Operating Company (GOC) intends to complete the two-dimensional seismic exploration on the fields "Duvanni:" and "Dashgil".
BAKU.01.03.2004.MEDIA-PRESS: The incident on the construction of the Azerbaijan area of the MEP Baku - Tbilisi - Ceyhan has been adjusted, the strikers have started the work. As Media-Press has been informned in the Company BP-Azerbaijan, yesterday about 200 workers stroke on the Kurdamir area of the MEP motivating this step by demands of salaries increase and domestic conditions improvement in the construction camp built for 600 persons. Drivers made a majority of the strikers.
BAKU.01.03.2004.MEDIA-PRESS: The pumping of oil from Kazakhstan by the pipelines through Russia is more profitable than other existing projects. The Premier of the RF Mr. Victor Khristenko has expressed such opinion commenting a decision of a number of the oil companies operating in Kazakhstan on oil pumping not through the Caspian Pipeline Consortium (CTC) and through the pipeline Baku - Tbilisi - Ceyhan.
BAKU.01.03.2004.MEDIA-PRESS: In Moscow the negotiations of the Minister of the Foreign Affairs of Turkey Mr. Abdulla Gul with the Russian authorities were continuing still, when the Special Envoy of the President of Russia on the Caspian Sea the Deputy Foreign Minister Mr. Victor Kalyuzni went to Turkey.
BAKU.01.03.2004.MEDIA-PRESS: On the week the Minister of Energy and Natural Resources of Turkey Mr. Khilmi Guler arrives in Iran as a Head of the delegations including management of the state pipeline company BOTAS for consideration of the issue of reduction of prices for the Iranian gas being imported. As the Agency IRNA informs from Ankara, Mr. Kh. Guler has announced about that on the international conference "Oil and Gas of the Black and Caspian Sea", being held in Istanbul.
As the Executive Director of the Company "Petro Pars" Mr. Golyamreza Manuchechri has informed in the interview to the agency "Mekhr", the test realization of Phase-1 has already started, however the order of the Ministry of Oil should be expected. To date the gas production on the first phase makes 40% from the planned volume and up to March 20 it increases up to 100%.
By the words of Mr. G. Manuchekhri, the first phase of "The South Pars" is the largest project executed by the native contractors. The incomes of its realization make $1 bn. Daily 25 MM cubic meters of the natural gas will be delivered to the gas network of the country and 40 thou bbl of gas condensate and 200 ton of sulfide will be produced.
Iran has only one-third part of the field "South Pars" and Qatar is owner of two third part of this structure.
By the words of the Executive Director of the Company "South Pars" Mr. Asadulla Salehi a future of 26 stages has been determined, and agreements on realization of 10 stages have been signed already, 3 ones already have been put into operation and two of them will be put in the next year (the next year in Iran starts on March 20).
As Mr. A. Salehi has noted, the works on the preparation of tenders for else five stages are being conducted. Putting into operation of each phase takes five years maximally, he has said. As well a seismic exploration of all field is being conducted and it will be possible to tell about supplies of "The South Pars".
By the words of the Chief of the Company "South Pars", at the present time the supplies of the Iranian part of the field are estimated in 14 trln cubic meters, a square of the field makes 3800 sq. km. Taking into account the Qatar area of the field it occupies above 9 000 sq. km. Having noted that at the present time 40 - 50 thou new job places have been created on the field, Mr. A. Salehi has said: "Totally the oil and gas field will allow to create about 70 000 job places.
IN 2003 CHINA IMPORTED 91 MM TONS OF CRUDE OIL AND THIS EXCEEDS THE RATE OF 2002 BY 31%
By his words, the growth of oil consumption is continued in China and it made 10% in the past year or 252 MM tons. At the same time 169 MM tons of oil were produced in the country and this is by 1.5% less than in the previous year.
By the predictions of experts, by 2020 the demand of dynamically developing economy in oil may reach 400 MM tons in a year and Peking already searches for wary of increasing both the proper production and import. The main crude oil suppliers to China are the Saudi Arabia, Iran and Russia.
A NEW HOUSE WILL BE CONSTRUCTED FOR INVALIDS OF THE KARABAKH WAR IN THE GEOKCHAY REGION
1500 invalids of the Karabakh war live now in Azerbaijan. Annually 120 - 130 residents are provided for dwelling houses. Totally since 1997 the Ministry of Labour has provided 700 families of invalids for flats and houses. In the next several years it is planned to provide them for new dwelling houses.
THE TWO DAYS OFFICIAL VISIT OF THE PRESIDENT OF AZERBAIJAN MR. ILHAM ALIYEV TO KAZAKHSTAN HAS STARTED
As it has been informed in the press service of the President of Kazakhstan, today Mr. Ilham Aliyev will meet with Mr. Nursultan Nazarbayev in Astana in narrow circle and enlarged one and as well with the Chair of the Senat (the upper Chamber of the Parliament) Mr. Oralbay Abdikarimov. A relevant agreement in accordance with the results of the negotiations should be signed.
On Tuesday Mr. Ilham Aliyev will met with the Premier of Kazakhstan Mr. Danial Akhmetov in Astana.
The wife of the President Mrs. Mehriban Aliyeva will visit to the National Music Academy, the international school "Miras", the National Scientific Medical Center.
During the visit to Astana Mr. Ilham Aliyev will meet also with the teacher staff of the Euro-Asian National University by the name of L. N. Gumilev, visit to the President Cultural Centre, the Monument of Independence "Baiterek", familiarize with the course of building of Astana, put flowers to the monument of the Motherland Defenders.
Before the departure to Astana, Mr. Ilham Aliyev has informed that he intends "to discuss the wide spectrum of bilateral relations and regional problems with the President Nursultan Nazarbayev". "Kazakhstan is the important country for Azerbaijan as well as Azerbaijan is the important partner for Kazakhstan", - the President has said.
He has not excepted that the sides will consider issues of joining of Kazakhstan to the oil pipeline Baku - Tbilisi - Ceyhan. "We want that the oil produced in other countries should be pumped through Azerbaijan and Azerbaijan become the transit country", - Mr. Aliyev has said. He has noted that oil volumes being produced in Azerbaijan would be sufficient for the economic efficiency of the oil pipeline Baku - Tbilisi - Ceyhan. At the present time, the President thinks, for Kazakhstan, where new large fields have been opened and large hydrocarbon volumes are expected, alternative ways of delivering them to the world markets should be available.
As well Mr. Ilham Aliyev has noted that the issue of legal status of the Caspian Sea may be discussed in Kazakhstan. He has noted the necessity of achievement of common agreement on the Caspian Sea and signed the positions of Azerbaijan, Kazakhstan and Russia are the same. "We are satellites in this issue", - the President of Azerbaijan has said.
Kazakhstan transports already its oil through Kazakhstan delivering it to Baku from the eastern shore of the Caspian Sea by tankers with the further transportation by railway up to the Black Sea ports. By the results of 2003 its volume has made about 3 MM tons, almost by one third more than in the previous year.
THE PRESIDENT OF AZERBAIJAN CONSIDERS THAT FOR THE PRESENT IT WOULD BE UNTIMELY TO THINK ABOUT FOUNDATION OF THE STRUCTURE ALTERNATIVE THE OPEC IN THE CASPIAN REGION
"If oil volumes being produced and will be produced in the Caspian Sea are considered, it would be evident that for the present they are not able to compete with the hydrocarbon volumes produced the OPEC's counties", - M. I. Aliyev has said. However he does not exclude that in future the Caspian could affect on the oil world market if new fields are revealed and oil production increases.
SIX ENTERPRISES OF THE JC "AZNEFTEKHIMMASH" HAVE RECEIVED A RIGHT TO MARK THEIR PRODUCTION IN ACCORDANCE WITH THE INTERNATIONAL STANDARDS ISO AND API
As Media-Press has been informed in "Azneftechimmash" The Baku Oil Production Equipment Plant and Surakhan Plant of the Oil Machinery and as well the Scientific Researching Institute and special constructor bureau. The Baku Oil Production Equipment Plant is specialized on the production of the fountain armature and valves, the Surakhani one - on the production of the deep pumps.
The Machinery Plant by the name of Sattarkhan and the Zabrat Machinery Plant besides of a right on reception of certificates of ISO, also have received of the API. The plant by the name of Sattarkhan produces the fountain armature, and the Zabrat plant - derricks and bases for them. Gifting of certificates is planned for March 5.
Reception of these certificates by the enterprises of "Azneftekhimmash" gives them a right for participation in the international tenders, however first of all this means that the production being manufactured by them corresponds to the international standards. In the period of the USSR the industrial enterprise "Soyuzneftemash" renamed to "Azneftekhimmash" after the collapse of the Soviet Union provided for 70% of oil equipment demands of the Soviet oil and gas workers. However after the collapse of the USSR the production of the Baku machinery workers lost sale markets and had not rating on international level. And incongruity of it to the standards of the ISO and API was one of causes of this. It is paradox, however by the same reason the production of "Azneftekhimmash" was not practically allowed to the international oil and gas projects realized in Azerbaijan. A long time the officials of very different state and economic structures of Azerbaijan expressed the hope that for example "the contract of century" will assist the restoration of the machinery industry of Azerbaijan. However the Appendix 11, of this PSA really took "Azneftekhimmash" out of the play on the Azerbaijan market. The companies working by the SS, appeared not able to be useful for the operation company and further other international consortiums producing oil and gas in Azerbaijan.
ON THE FIELDS "DUVANNI" AND "DASHGIL" OF THE CONTRACT SQUARE "SOUTH-WEST GOBUSTAN" THE TWO-DIMENSIONAL SEISMIC EXPLORATION IS CONDUCTED
As Media-Press has been informed in the State Oil Company of Azerbaijan, after completion of the seismic exploration, the further plan of measures will be determined.
Earlier the GOC planned to conduct three-dimensional exploration on the northern, central an shore blocks of the contract area. The square of the central block makes 143 sq. km, of the shore one - 351 sq. km., north block - 113 sq., km. All works should be completed up to 2005. However, the company refused of this intension. The two-dimensional seismic exploration had been conducted already on the northern block of the contract area.
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 non-profitable. 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).
THE INCIDENT ON THE CONSTRUCTION OF THE AZERBAIJAN AREA OF THE MEP BAKU - TBILISI - CEYHAN HAS BEEN ADJUSTED, THE STRIKERS HAVE STARTED THE WORK
The management of the Company CCIC, the contractor of the construction of the Azerbaijan and Georgian areas of the Main Exporting Pipeline Baku - Tbilisi - Ceyhan met with representatives of the striking workers and heard their demands. Today all the personnel started their work after the negotiations.
By the information of the press service of BP-Azerbaijan, the management of the CCIC has declared at the same time that the demands of increasing of the salary are groundless, as all workers had signed relevant contracts, which provided for a salary total. Moreover, a salary received by construction workers and drivers may not be considered low as it is significantly exceeds an average one in the country. The officials of the Company noted that the CCIC applies the practice of salary increasing but it occurs only individually if an employee shows a carrier growth and qualification improvement. And there should not be a question about mass increasing of salaries.
And as to the improvement of the domestic conditions in the Kurdamir camp, it has been noted that construction camp corresponds to all demands of the international standards. The management of the company will try further to maintain this standard. At the same time the officials of the company are ready to hear and attend to all grounded demand.
RUSSIA AND KAZAKHSTAN HAVE AGREED ON THE OIL BALANCE UP TO 2020
"We agreed today on this understanding of the issue (within frameworks of meeting of the European Asian European Economic Cooperation) with the Premier of Kazakhstan Mr. Danial Akhmetov", - Mr. Khristenko has emphasized.
At the same time Mr. Khristenko has noted that the decision of the Kazakhstan oil officials on the oil pipeline Baku - Ceyhan "is not the project of the country - this is a matter of separate companies, with which other investors could not agree with".
In accordance with the meeting Russia and Kazakshtan achieved the agreement on the oil balance up to 2020. "By 2020 the oil export will be increased up to 160 MM tons", - Mr. V. Khristenko has noted. At the present time the export from Kazakshtan makes 40 - 45 MM tons.
MR. VICTOR KALYUZNI: MOSCOW WILL NOT ALLOW TO CLOSE BOSPORUS
Just here in Turkey, the newpaper "Vremy Novostey" Mr. Kalyuzni has opened new "front of war" for the energetic interests of Russia. He has spoken out with the hard declaration against the intension of Turkey to "supercharge artificial alarmism around the Black Sea straits". As the Russian periodical confirms, "the question is about that Ankara started more frequently threat to close the Strait Bosporus for navigation of oil tankers delivering the Russian and Kazakhstan oil to the world markets. This is explained by impossibility of ensuring the ecological safety of multimillion Istanbul and as well as by treaties of "terrorist actions". (For justice we should note that Turkey never put the question in just this angle. Ankara does not intend to close the straits, but it has begun to make stricter the navigation regime just for ensuring of the ecological and other safety of Stanbul already several years ago and continues this policy in accordance with the growth of oil flow through the Bosporus and Dardanelles - Media-Press). Ankara warns that in the end the authorities of the country may meet with the strict "anti-tanker demarches of the Turkish society, troubled by the problem of "life or death", being created for Istanbul by continuation of the tanker navigation through the Bosporus.
Mr. Victor Kalyuzni has decided not groundlessly that the effect from his declaration will be maximal if it is heard on the shores of Bosporus - just at that time the international conference "Oil and Gas of the Caspian Seas" was held.
Russia sees a political ground in actions of Turkey: the intension of artificial the capacities of the straits if not their closing for making the Caspian and Russian oil producers to transport it in transit way roundabout of Russia through Baku - Tbilisi - Ceyhan. For grounding of his conclusions the Caspian Special Envoy of the Russian President made available the data of the expert estimation of the straits capacity carried out by the Novorossisk Marine Academy in accordance with the order of the Minstry of Transport of Russia. By the preliminary results, this capacity is used today only by a half. Mr. V. Kalyuzni has made available the data of the famous insurance company "Lloyd Register", in accordance of which the safety level in the Bosporus is caused by the absence of effective dispatching service and onshore navigation equipment management.
The conclusions of the Deputy Foreign Minster are categorical: "We need not in the one-sided actions and especially as efforts to close and privatize the international water way, as the Black Sea are really. This destructive idea being advertised by several officials of authorized circles of Turkey may master mass minds one day and the situation would become uncontrolled and the government would met with the khaos". "This is the dangerous way and I do not advice to liberate a genie from a bottle!", - Mr. Victor Kalyuzni has said.
He has advised to hold multisided consultations on the straits navigation safety in Istanbul as well independent studying of the Black Sea straits capacity. Mr. V. Kalyuzni also has reminded about the offer of the Ministry of Transport of Russia on creation of the Russian-Turkish working group on this problems, which was rejected by Turkey.
On behalf of Russia, as "the largest user of straits" he has offered to process the issue about "foundation of the joint company-operator in the Black Sea Basin". "Let's make a business, but not forbid", - the Russian diplomat exclaimed with pathos and went to discuss these "businesses" with the Turkish Minister of Energy Mr. Khilmi Guler. By the confirmations of eye-witnesses, the meeting was peaceful and even constructive, the periodical "Vremya Novostey" reports.
THE MINISTER OF ENERGY OF TURKEY WILL DISCUSS ISSUES OF REDUCTION OF PRICES FOR THE IRANIAN GAS BEING IMPORTED
"There is the point of oil price revision on the certain stages in all our contracts. On the ground of this point, since July of the past year Turkey put a question on reduction of the price to the Iranian government. The management of the company BOTAS negotiated with their Iranian counteragents in Tehran and Ankara", - the Turkish Minister has said.
Answering on the question on possible actions of Turkey if the negotiations do not give results, Mr. Kh. Guler has said, that Ankara is interested for that its relations with the neighbor Iran developed in the route of certain understanding and in accordance with laws and agreements. The negotiations continue successfully, there is a hope for finding of compromise like as it took place during the negotiations with Russia on the project "Blue Stream".
Earlier the Deputy Minister of Oil of Iran Mr. Mohammad Mallaki has declared that a fixed price ha been provided in the agreement on the Iranian gas deliveries to Turkey and it should not be revised up to the end of 2004. And the Executive Director of the National Iranian Company on the Gas Exportation Mr. Ruhoddin Javadi has informed that Tehran had rejected the demand of Ankara on the reduction of prices for the natural gas delivering by the gas pipeline from Iran to Turkey. "The demands of the Turkish side on the price reduction for the Iranian gas being delivered is the violation of the terms of the contract signed two years ago", - he has said.
In 2003 Iran has delivered 3.5 bn cubic meters of gas to Turkey. In the current year it is planned to increase the volumes of deliveries up to 8.3 bn cubic meters.
