THE WB AND THE GOVERNMENT OF AZERBAIJAN DEVELOP THE NEW PROJECT FOR THE AGRARIAN SECTOR
BAKU.10.03.2004.MEDIA-PRESS: The World Bank jointly with the Azerbaijan Government develops the project of investing the agricultural infrastructure of the republic.
BAKU.10.03.2004.MEDIA-PRESS: The Azerbaijan National Agency on Mines Removal on the liberated territories cleaned 268 thou sq. km from mines of the Azerbaijan territory in Fizuli, Agjabedi, Khanlar and Agstafa regions on February of this year. For this period above 350 unexploded ammunitions were revealed.
BAKU.10.03.2004.MEDIA-PRESS: The European Council is ready to define the date of start of negotiations on joining of Turkey to it "if even Ankara have not a time for execution of all terms worked out at the summit meeting in Copenhagen in 2002 for this country". The Foreign Minister of Ireland Mr. Brayan Kohn has said this after completion of negotiations with his Turkish colleague Mr. Abdulla Gul. At the present time Ireland presides in the EU.
BAKU.10.03.2004.MEDIA-PRESS: The next round of negotiations on joining of Kazakhstan to the project of the Main Exporting Pipeline Baku - Tbilisi - Ceyhan (MEP BTC) will be held on April, the President of the State Oil Company of Azerbaijan (SOCAR) Mr. Natiq Aliyev has informed journalists about this.
BAKU.10.03.2004.MEDIA-PRESS: It is not excepted that the oil produced from the field "Kashagan" will become the first Kazakhstan oil for the pipeline Baku - Tbilisi - Kashagan (BTC), however in the case if by 2008 capacities of the Caspian Pipeline Consortium CPC, the Deputy Minister of Energy and Mineral Resources of Kazakhstan Mr. Lyazzat Kiinov has informed.
BAKU.10.03.2004.MEDIA-PRESS: The Azerbaijan and Georgian railways will not increase tariffs for oil and oil products transit from Kazakhstan on the territories of their countries. The Deputy Minister of Transport of Azerbaijan Mr. Musa Panakhov has declared.
BAKU.10.03.2004.MEDIA-PRESS: Ways of the Kazakhstan oil transportation, which are available today, allow exporting of 70 - 80 MM ton of oil annually. However the oil production by 2015 will increase up to 140 MM tons and so Kazakhstan is interested in new routes, the Deputy Minster o energy and mineral Resources of Kazakhstan Mr. Lazzat Kiinov has informed journalists about this.
BAKU.10.03.2004.MEDIA-PRESS: The USA are interested in the development of the energetic cooperation with Kazakhstan. This was announced during the meeting between the Ambassador of Kazakhstan in the USA Mr. Kanat Saudabayev and the Chief of the Energy and Trade Committee of the US Congress Mr. Joe Barton, which took place recently.
BAKU.10.03.2004.MEDIA-PRESS: On February the state delivered 340.4 MM cubic meters of the natural gas to the state. 275.7 MM cubic meters of it made a share of the State Oil Company of Azerbaijan, the joint companies - 6.8 MM cubic meters, the Azerbaijan International Operating Company on the development of fields of "Azeri - Chiraq - Guneshli" (AIOC) - 64.7 MM cubic meters.
BAKU.10.03.2004.MEDIA-PRESS: In 10 years incomes of Iran both from oil and oil products exports will be the same. The Deputy Minister of Oil of the IRI Mr. Nesrat Rakhimi has declared this in interview to the Agency Fars.
BAKU.10.03.2004.MEDIA-PRESS: The single producer of large lorries holding company "AvtoKrAZ" (town Kremenchug, Poltavian district) plans to organize the car mounting production in Azerbaijan.
As Media-Press has been informed in Media-Press in the Baku office of the WB, the mission of the WB on agriculture will arrive in Baku with this purpose. By preliminary information, the project will consist of two components providing for the construction of roads and improvement of water supplying in the countryside and enlarging of opportunities of municipalities and other local management structures. Supposedly means of both the WB, the Azerbaijan Government and the agricultural population will be attracted.
By the preliminary information, credit by $15 MM for 35 years and with 10 years favorable period will be allocated supposedly. Moreover, the officials of the WB have informed that the Government of Japan has allocated the grant for this project, moreover its volume is not known for the present.
We shall note that this is not the first joint project of the WB in Azerbaijan. The first one - "Privatization of economies" has started else in 1997 in six pilot regions: Barda, Ujar, Salyan, Khachmaz, Sharur and Nakhchivan (village) and completed in the past year. This program by a const of $30 MM included 150 villages. It provided for crediting farmers, assistance to lands privatization, rendering of information services to farmers and their training including market relations. Within frameworks of the project 5 thou farmers received a credit by a total of $5.8 MM.
The realization of the second project - "The Development and Crediting of Agriculture" has begun on April 2002. In the first four years $33.6 MM will be allocated for its realization and the Government of the country will allocate $1.4 MM. Totally the project is estimated by $100 MM and is accounted for 10 years. Within frameworks of the project certification of immovable property of farmers will be carried out, regional offices for registration of lands and farmer economies crediting, will be founded.
ON FEBRUARY ABOVE 268 THOU SQ. M OF THE AZERBAIJAN TERRITORY WERE CLEANED FROM MINES
Since the beginning of the year the ANAMA has cleaned 500 thou sq. m of the territories from mines.
By the information of the agency, more than 400 MM sq m of the territory is dangerous for mines not pulled out still and vessels, which have not blown up. The present resources of the agency are insufficient for cleaning these areas. Above 7 MM sq m have been cleaned for three years. The present capacities of the agency allow cleaning of up to 3 MM sq km annually. The strategic plan on the mines removal accounted for the period up to 2008 has been worked out in Azerbaijan. The realization of this plan will allow to clean up to 10 - 12 MM sq meters annually.
By the words of the Executive Director of the ANAMA Mr. Nazim Ismaylov, the mine cleaning of one sq m of the territory costs $1.1. "Taking this expenses into account, the total cost of mine removal in Azerbaijan makes $400 as minimum. However if the material and technical is improved, it will be possible to reduce expenses up to $250 - 300 MM". Totally for three years of the existence of the ANAMA the expenses for mining removal and cleaning of the territories from vessels, which have not blown up have made $7 MM.
It is planned to spend $2.8 - 2.9 MM in 2004. The staff of the Agency includes 110 combat engineers, 18 specially trained dogs and the explosive disposal group. By the information of the ANAMA, 25 men died for three years from mines in Azerbaijan and 35 men injured. These accidents were registered in 12 regions of the country.
TURKEY APPROACHES TO THE EU
The Foreign Minister of the Great Britain Mr. Jack Straw, who visited Istanbul in the past week has said that Turkey has achieved "a great progress" in improvement of situation around human rights - this is one of the main demands of the EU to Ankara and confirmed the readiness of London to maintain its membership in the EU.
In its turn recently the EU published a report, which shows that Turkey has proved its adherence to reforms and should be excluded from the list of countries where the democratic progress requires especial control. For the last two years Ankara has conducted more reforms than for 10 past years", - it is said into the report.
"For last 3 years Turkey evidently has demonstrated its resoluteness of execution its liabilities as the EU's member.", - as well it is emphasized in the document, which is estimated as "the most positive document on issues of the development of Turkey, accepted in Europe since a time of military coup d'etat dated from September 12, 1980", - the newspaper "Khurriet" writes.
This document significantly improves chances of Turkey for joining to the European Union. Expectedly that on April it will be approved by the Parliament Assembly of the EU.
The Premier of Turkey Mr. Rejep Tayip Erdogan has declared in interview to the newspaper" Times" that joining of Turkey to the EU woul be promote to solving of the problem of "civilizations collision" and significantly strengthen positions of Europe in the Islamic word.
"We do not consider the EU as the economic union or Christian club, - he has said. - We consider the EU as the union of political values. We would like to percept it as a place of civilizations cooperation but not off their collision".
By his opinion, the membership of Turkey in the EU would strengthen positions of the EU in the Islamic World and dispel all fears on that this foundation is a union of certain religions or economic interests.
The Premier of Turkey has reminded that the Turkish people has applied a lot of efforts for joining to the EU and if on the negotiations on this issue a date of joining of Turkey is not called, this will really will a great trouble for our people". "Possibly we would explain causes of this to our people and the world with difficulties".
The dangers of Mr. Erdogan are not groundless. As it is known, not far all policymakers in Europe consider positively the idea of reception of Turkey to EB, by the opinion of the commissar of the United Market of the European Union Mr. Frits Bolknenstein Europe should be surrounded by buffer states, which would defend it from the Middle East states and Russia. Turkey should defend the EU from the Middle East states (Syria, Iran, Iraq) and Belarus, Moldova and Ukraine should defend from Russia.
By opinion of Mr. Bolkenshtein, the states, which should execute the role of a buffer, should not be joined to the EU in any way. So, the first, Europe should defend itself from dangerous neighbors. The second, if Turkey becomes a full member of the foundation, and Ukraine should be joined to the Union. Ukraine, by the opinion of the commissar, cannot be a member of the EU, although it is more European country than Turkey, because it mission is isolating of the EU from Russia.
Mr. Frits Bolkenstein is one of the most active oppositionists to the idea of joining of Turkey to the EU amongst 20 commissars of these organizations. Meanwhile as the Financial Times notes, the majority in just the authorities of the EU consider this issue on behalf of Turkey.
THE AGREEMENT ON JOINING OF KAZAKHSTAN TO THE PROJECT OF THE CONSTRUCTION OF THE PIPELINE BAKU - TBILISI - CEYHAN WILL BE SIGNED IN 2004
The sides will continue the discussion of the project of the intergovernmental agreement between Azerbaijan and Kazakhstan on the Kazakhstan oil transportation by BTC. After agreeing the document by the working groups, it will be presented for consideration of government of both the countries. And already after signing of given agreement between investors of oil transport system Aktau - Baku and the governments of Azerbaijan and Kazakhstan, transit agreements will be signed.
By the words of Mr. N. Aliyev, the intergovernmental agreement will be signe in 2004. "The negotiations on this issue signed two years ago are on the stage of completion. We should not hurry as the pipeline BTC has not been put in operation for the present and Kazakshtan has not relevant volumes for the pipeline. However we prepare for juridical base of all oil deliverers and investors. As well we try to solve all problems, which may emerge in future", - the President of the SOCAR has said.
He has also noted that up to completion of the negotiations a number of disputable problems should be solved. "Kazakhstan would not like a ratifying this agreement by Parliament as a law, as it has been done in Azerbaijan up to date. However investors demand the ratification in order this law don not in future, if even changes in legislation of Kazakhstan take place and new regulations on customs, taxes are accepted. I think this issue may be adjusted. Investors will agree on some additional document if the intergovernmental agreement is not ratified", - Mr. N. Aliyev has said.
The creation of the system Aktau - Baku supposes the construction of the new terminal for keeping and transshipment of oil in Kurik (the port in 76 km to the south-east from Aktau) and as well the connection pipelines. The capacity of the system on the transshipment would make 20 MM tons of oil annually; up to 7.5 MM tons would be delivered on the first stage. The volume of investments would be determined after singning the intergovernmental agreement. For managing the system Aktau - Baku the separate company would be founded and four companies would invest it : the Italian Eni, French TotalFinalElf, American ConocoPhilips and Japanese Inpex, which take part in the project of the development of Kazakhstan field "Kashagan" and having 15% of sharing in the company BTC Co.
The length of the MEP makes 1767 km and 443 of them pass through the territory of Azerbaijan, 248 km - through the territory of Georgia, 1076 km - through the territory of Turkey. The capacity of the pipeline makes 50 MM tons of oil in a year.
The construction works started on April 2003 and will be completed in the fourth quarter of 2004. The Azerbaijan oil export from the port Ceyhan (Turkey) is planned by the second quarter 2005.
BP (30,1%), the SOCAR (25%), Unocal (8,9%), Statoil (8,71%), TPAO (6,53%), ENI (5%), Itochu (3,4%), ConocoPhillips (2,5%), INPEX (2,5%), TotalFinaElf (5%) and Amerada Hess (2,36%) are the shareholders of the project
KAZAKHSTAN DOES NOT EXCEPT THAT OIL FOR THE PIPELINE BTC WILL BE DELIVERED FROM THE FIELD "KASHAGAN"
Mr. L. Kiinov has explained that the shareholders of the project "Kashagan" are ones of the CPC. So at the first turn oil should be delivered by the CPC. "However, if by 2007 - 2008 the CPC will be fully loaded, if we are able to give the Kashagan oil for Baku - Ceyhan", - he has emphasized.
He has noted that tariffs for pumping of the Kazakhstan oil by the pipeline Baku - Tbilisi - Ceyhan will be the same as for the shareholders of the given oil pipeline.
By the words of Mr. L. Kiinov, for oil transportation by the pipeline BTC Kazakhstan is ready to deliver up to 20 MM tons of oil annually to Azerbaijan. "If our opportunities exceed this volume, we will construct oil pipeline up to Baku through the Caspian bottom", - he has said.
AZERBAIJAN WILL NOT INCREASE TARIFFS FOR TRANSIT OF THE KAZAKHSTAN AND TURKMEN OIL ON ITS TERRITORY
He has emphasized that proper negotiations between Azerbaijan and Georgian sides have been conducted. "Since the problems of tariffs are adjusted, the volumes of oil and oil products from Kazakhstan would grow and make 3.5 MM tons by the end of the year almost by 700 thou tons more than in the previous year", - Mr. Panakhov has said.
The route of oil and oil products transports from Kazakhstan through Baku to Batumi operates since the end of 90 years. Tariff for transit of a ton of oil made $28 at first and for last 2 years grew up to $32. In the end of 2003 the railway workers of Azerbaijan and Georgia offered to increase tariffs for transit else by $1. On January - February of 2004 this has brought to reduction of volumes of oil transit and oil products from Kazakhstan to the Black Sea ports of Georgia by almost 10% and approximately by one third - from Turkmenistan. Correspondingly, oil transportation flow from the eastern coast of the Caspian Sea to the Iranian port Enzeli and Russian Makhachkala has grown sharply.
The Deputy Minister of Transport has declared that for ensuring the competitiveness of the route through Azerbaijan and Georgia, it has been decided to establish transit tariffs on a level of beginning of 2004 and in the next days a possibility of their reduction else by $2 will be considered.
KAZAKHSTAN IS READY TO BECOME AN SHAREHOLDER OF ODESSA-BRODI
By his works at the same time with the oil pipeline Baku - Tbilisi - Ceyhan, Kazakhstan studies opportunities for sharing in the project of its oil transportation by the pipeline Odesssa - Brodi - Plotsk - Western Europe, offered by Ukraine. "Kazakhstan is ready to invest its assets in some transport projects. Particularly, in the project Odessa - Brodi as a shareholder, - Mr. L. Kiinov has emphasized.
We should remind that in the mid of February after the meeting between the President of Ukraine Mr. Leonid Kuchma the President of Poland Mr. Alexander Kvasnevski has declared that the governmental officials of Ukraine, Russia, Poland, Kazakhstan, Azerbaijan and the EU intend to discuss in the next time the possibility of creation of the international consortium for the completion of the construction of the oil pipeline "Odessa - Brodi" towards to Europe and its further operation.
On the joint press-conference with Leonid Kuchma he also noted that the agreement on transportation of the Caspian oil by the oil pipeline, "which will be delivered first of all from Kazakhstan and Azerbaijan to Odessa and then by the pipeline to Poland".
"In the next time the meeting of the interested sides on the governmental level will be held in the next time and if the agreement is achieved - the possibility of foundation of very serious international consortium for completion of this project will be available", - Mr. A. Kvasnevski emphasized.
"Owing to the Caspian oil, we receive the necessary element and this is very important for Poland and Europe", - Mr. A. Kvasnevski has said. "We agreed that such meeting will be held under authority of Mr. Leonid Kuchma in the next weeks", - the Polish President has said.
The President of Urkraine noted in his turn that the Ukrainian Government decided to use oil pipeline "Odessa - Brodi" in the European direction taking into account two conditions. "At first getting oil from the Caspian region as soon as possible and a second is the construction jointly with the EU of he oil pipeline up to Poland", - he has said.
Mr. L. Kuchma noted that the pipeline expectedly would deliver the first oil from the Caspian region on May of the present year.
As it had been informed, on February 4 the Cabinet of Ukraine accepted the decision on using of the oil pipeline Odessa-Brodi in the direct direction. Within frameworks of this decision the government will create the working group, which will adjust issues of joint using of the oil pipeline with oil owners. At the same time the government supports the law project on transferring to concession of the oil pipeline Odessa-Brodi and offshore oil pipeline "Yuzni" in Odessa.
The transportation of 4 - 5 FMM tons of the Caspian oil by the pipeline is expected in this year.
For several months polemics around versions of using of the oil pipeline continued in Ukraine: to Europe - for the transportation of the Caspian oil or the coast of the Black Sea - for the transportation of the Russian oil.
The first turn of the oil transport system of Odessa - Brody was put into operation on May, 2002. Its capacity makes 9 - 14.5 MM tons of oil annually with the reservoir park of 200 thou cubic meters. The offshore oil terminal "Yuzni" is able to receive tankers with a deadweight up to 100 thou tons. The enlarging of the capacity of the oil pipeline up to 40 - 45 MM tons annually with enlarging of the reservoir park up to 600 thou cubic meters is provided.
THE USA ARE INTERESTED IN REALIZATION OF THE POTENTIAL OF KAZAKHSTAN AS IMPORTANT ALTERNATIVE SOURCE OF ENERGETIC RESOURCES
As it has been informed in the press-service of the MFA of Kazakhstan, during the meeting with the American side as well the importance of ''realization of the Kazakhstan potential as important alternative energy source for global economy", has been emphasized.
During the meeting in whole the subjective talk have been held on a matter of conditions and perspectives of the Kazakhstan - American cooperation in the energetic field, especially in connection with forthcoming realization of the state program of the development of the Kazakhstan shelf of the Caspian Sea.
Mr. Kanat Saudabayev has informed the American congressmen on plans of increasing of volumes of oil production in Kazakhstan from the present 52 MM tons annually up to 170 MM tons up to 2015. The Kazakhstan diplomat has emphasized the important role of American companies in this field. The interlocutors noted the importance of creation of multi-variant system of exporting pipelines to provide for growing demands of Kazakhstan and emphasized the great significance of participation of the country in realization of the project of the pipeline Baku - Tbilisi - Ceyhan.
ON FEBRUARY AZERBAIJAN DELIVERED 340.4 MM CUBIC METERS OF GAS TO AZERBAIJAN
150.4 MM cubic meters of gas have been delivered from the mentioned volume to the system of the JC "Azerigaz" and this is by 8% less than it has been planned. The rest 190 MM cubic meters were transferred to the Azerbaijan Gas Processing Plant (AGPP). This is by 19.9% more than it has been planned. Totally since the beginning of the year "Azerigaz" has received 324 MM cubic meters of gas and the AGPP - 388.9 MM cubic meters.
Azerbaijan needs in up to 10 bn cubic meters of gas annually. In the past year Azerbaijan purchased 4 bn cubic meters of "blue fuel" from the international group of companies "Itera". This year "Gazprom" replaced "Itera" and plans to deliver 2.75 bn cubic meters of the natural gas to Azerbaijan. Recently else one agreement between the SOCAR and the CJC "KazRosGaz" has been signed on deliveries by 4.5 bn cubic meters of gas.
The CJC "KazRosGaz" started the gas deliveries since January of the current year. For January - February Azerbaijan has imported already almost 1 bn cubic meters of gas from Kazakhstan. The SOCAR purchases the Kazakhstan gas for $52 per 1 thou cubic meter. The annual import gas demand of the Azerbaijan market makes about 6 bn cubic meters.
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.
IN 10 YEARS INCOMES OF IRAN BOTH FROM OIL AND ITS PRODUCTS EXPORT WILL BE THE SAME
By his words, availability of oil and gas, other natural resources opens large unlimited opportunities for Iran. The natural resources will never become a reason of economic problems.
Having showed to the critical expressions of some experts on reasons of economic difficulties of the country, Mr. Nesrat Rakhimi has noted: "Oil creates favorable conditions for the Iranian economy. At the same time, of course, ways and purposes of spending earnings being received from export should be monitored". By his opinion, spending of incomes for covering current expenditures is missing opportunities and vain waste of public riches.
"AVTOKRAZ" PLANS TO ORGANIZE MOUNTING PRODUCTION IN AZERBAIJAN
As the Ukrainian Agency UNIAN informs with a reference to the press-service of "AvtoKraAZ", the car mounting production in Azerbaijan would be able to create the new working places, localize the production of nocks and aggregates on the local plants and price-reduction of the car production.
"I am sure that our cooperation with the companies of Azerbaijan will be fruitful and mutual profitable", - the press service quotes the Director of Management of "AvtoKrAZ", Mr. Servey Sazonov.
As it is noted in the information, earlier the Azerbaijan enterprises produced special installations for the oil and gas complex on the base of chassis of KraZ cars. The interaction of "AvtoKraZ" and plants of Azerbaijan has serious prospects, but the construction of KraZ cars is more suitable for mounting of different installations and oil and gas complex is one of priory trends of the holding company development.
As well as it is said in information; up to the end of this year the company will complete the preparation for receiving of certificate for correspondence of the system of managing the quality to the international standard ISO - 9001:2000.
The inquiry: the holding company "AutoKrAZ" produces 27 main models and almost 150 modifications and completing of large car technique, especially curry dumpers, dump cars, timber carriers, truck tractors, high passable automobiles for military purposes, installations for oil and gas production.
