IN 2004 THE WORLD OIL DEMANDS WILL MAKE 80.6 MM BBL PER DIEM
BAKU.14.05.2004.MEDIA-PRESS:
The International Energy Agency IEA, which represents interests of 26 industrial countries-oil importers, has published the next report on May 12 on conjuncture of world oil market. The IEA has increased the forecast on the world oil demand in 2004 by 330 thou bbl per diem - since 80.3 MM bbl per diem, which were forecasted in the April report up to 80.6 MM bbl per diem.
BAKU.14.05.2004.MEDIA-PRESS:
At the SREPS "Severnaya" preparation works for the construction of the second steaming gas installation go.
BAKU.14.05.2004.MEDIA-PRESS:
The tariff council have decided to reduce prices for shipment-unloading in the Baku International Sea Trade Port (BISTP).
BAKU.14.05.2004.MEDIA-PRESS:
The German Company Altonaer Kaviar Import intends to construct plat for sturgeon breeding and black caviar production.
BAKU.14.05.2004.MEDIA-PRESS:
The WB intends to allocate $60 MM for realization of the state program on poverty reduction and economic development of Azerbaijan. This year $20 MM should be allocated supposedly. And the received means will be transferred directly to the state budget of Azerbaijan. The Internatonal Development Association (IDA) will allocate means; usually this organization allocates its credits on favorable conditions for a term up to 35 years under 0.75% rates of interest.
BAKU.14.05.2004.MEDIA-PRESS:
The UNISEF plans to render technical assistance to Azerbaijan by a total of $9.46 MM in 2005 - 2009 within frameworks of the cooperation with Azerbaijan.
BAKU.14.05.2004.MEDIA-PRESS:
The President of Azerbaijan Mr. Ilham Aliyev thinks that "there is not a necessity in signing of the new documents on maintenance of the fire stop regime in the zone of the Nagorni Karabakh conflict". In interview to journalists Mr. I. Aliyev who is in the Nakhchivan Autonomous Republic, has declared "that the armistice regime established on May 12, 1994 in the zone of the conflict is continued and supported by the sides".
BAKU.14.05.2004.MEDIA-PRESS:
The US President Assistant on the National Security Mrs.Condoles Rice should discuss perspectives of adjustment of the conflict around Nagorni Karabakh in Moscow at the same time with other regional issues. She has informed about this in the briefing held before her visit to Russia.
BAKU.14.05.2004.MEDIA-PRESS:
The former Speaker of the Parliament of Armenia Babken Arartskyan has declared that the authorities of the country have not a political will necessary for adjustment of the Nagorni Karabakh conflict.
BAKU.14.05.2004.MEDIA-PRESS:
On January - April of 2004 the Azerbaijan Internaional Operating Company (AIOC) has produced 2.095 MM tons of oil on the offshore field "Chiraq".
BAKU.14.05.2004.MEDIA-PRESS:
The joint companies (JC) and operating companies (OC) developing onshore fields of Azerbaijan have produced 301.8 thou tons of oil for January - April of 2004. This is more by 22% than predictions.
BAKU.14.05.2004.MEDIA-PRESS:
Azerbaijan does not participate and intend to share in the project Odessa - Brodi. The President of the State Oil Company of Azerbaijan (SOCAR) Mr. Natiq Aliyev has said.
BAKU.14.05.2004.MEDIA-PRESS:
The Russian Oil Company "LUKoil" does not intend to stop the cooperation with Azerbaijan on the project of the development of the fields "Zikh-Govsani". As ITAR-TASS has been informed in the Russian concern, the new round of the negotiations on this issue will be held on June.
BAKU.14.05.2004.MEDIA-PRESS:
The panics on the international oil markets continue. In America prices have achieved a maximum level for more than 20 years history of future contract market. For the last days oil cost overcame a psychological level of $40 the second time and fixed on point of $40.77 for barrel, and this rate is absolute record. And independent experts and officials of the OPEC affirm unanimously that the cartel may not affect on the situation as factors affect on the market and the organization is not able to manage them. So probably in the next days a prices renew the historical maximums.
A growth of the world oil demand in 2004 will make 1.95 MM bbl per diem as compared to 2003. As it was said in the report "this increase reflects the synchronous world economic growth" and is a very significant one expressed in absolute figures after 1988, "K2kapital" reports.
By estimates of the IEA, the volume of the oil production in 10 countries of the OPEC sharing in the agreement on quotas has reduced by 380 thou bbl per diem up to 25.43 MM bbl per diem. Nevertheless, this is by 1.93 MM bbl per diem higher than a total quota of the OPEC, which makes 23.5 MM bbl per diem since April 1.
The total oil production of the OPEC including Iraq has made 27.77 MM bbl per diem as compared to 28.21 MM bbl per diem on March. The oil production volume in Iraq reduced up to 2.34 MM bbl per diem on April as compared to 2.40 MM bbl per diem on March.
THE PREPARATION FOR THE START OF THE CONSTRUCTION OF THE SECOND STEAMING GAS INSTALLATION IS GONE AT THE SREPS "SEVERNAYA"
By the information of the press service of "Azerenerji" an area, where the SGI is located has been prepared for the construction, a scheme of future communications has been agreed. At the same time a work on selection of specialists for future installation and improvement of their qualification.
As Media-Press informed earlier, the construction on the Baku SREPS "Severnaya" of the second energetic block by a capacity of 400 MWt will start in 2005. For realization of this project above $200 MM will be required. In the end of the past year the specialists "Azerenerji" and SREPS "Severnaya" started to prepare the project-estimate documents for this object.
We shall remind that the Japanese Bank of International Cooperation (JBIC) intends to allocate the favorable credit for the construction of the second energetic block. Earlier the JBIC has allocated a credit for the construction of the first steaming gas installation with a capacity of 400 MWt on the same SREPS (by a term of 40 years with 0.75% rate of interest). The Japanese Company Mitsui has constructed it. Besides, the JBIC allocated a credit also to construction of the gas pipeline Garadag-Digyakh-SREPS "Severnaya", which is provided for gas deliveries to the SREPS. Totally the a total of credits of banks made about $340 MM. The new energetic block allowed improving significantly the energetic supplying of the Absheron Peninsula and annually saving above 200 thou conditional fuel.
A construction of additional gas pipeline is not required for the second energetic bloc as a capacity of the new pipeline Garadag - Digyakh - SREPS "Severnaya" allows fuel deliveries for not even two SGI, but similar SGI.
As specialists note, closeness to consumer is a main advantage of these two stations. Besides of other things, this will allow reduction of losses in transmission of electric energy. The Absheron Peninsula now receives electric energy by a help of the EPTL, which have been extended from Mingechavir.
TARIFFS FOR TRANSHIPMENT OPERATIONS IN THE BAKU INTERNATIONAL SEA PORT HAVE BEEN REDUCED
As Media-Press has been informed in the Ministry of Economic Development, tarif of every meter for transshipment of wagons and car techniques on the ferryboat pierce have been reduced up to 7.5 thou manats from 7.5 thou manats (without taking added cost tax). The new tariff will be put into force since June 1. This measure will allow improving ability of cargo activities through the Baku port for competitiveness, which is the important transshipment point on the route of the Eurasian transport route TRACECA.
THE GERMAN ALTNAER MAY ALLOCATE UP TO $10 MM IN THE CONSTRUCTION OF THE STURGEON BREEDING PLANT IN AZERBAIJAN
As the Vice-Director of the company "Khazar-Balig" Mr. Zakir Veliev has informed journalists, Altonaer Kaviar Import and the Azerbaijan company have signed the agreement on foundation of joint company for this purpose.
"The German company intends to invest $8 - 10 MM to the plant for first four years. The plant should be constructed in the Lyankoran region (south of Azerbaijan)" - he has determined.
By data of "Interfax-Azerbaijan", the project capacity of the plant, which should be achieved for five years will make 1 thou tons of fish.
THE WB AND THE GOVERNMENT OF AZERBAIJAN WILL DISCUSS DETAILS OF THE STATE PROGRAM ON POVERTY REDUCTION AND ECONOMIC DEVELOPMENT OF AZERBAIJAN
As Media-Press has been informed in the Baku Office of the WB, on May 22 the mission of the WB under a head of the leading economist on the South Caucasus Mr. Christian Peterson arrive in Baku for joint development of the project.
The program of poverty reduction provides three trends: development of non-oil sector and foundation of job vacancies here, quality improvement of social services and creation of common conditions for their reception (education, social protection, health) and rational consumption of resources of the State Oil Fund.
The first stage of the program accounted for 2002 - 2005 is estimated by $100 MM. Already Azebaijan has received two tranches by $10 MM of each one from the International Monetary Fund in 2001 - 2002 and the third tranche by $16 on May 2003. The credits were allocated for a period of 10 years with 5.5 years favorable period under 0.5% annual rate. Keeping of macroeconomic stability, annual inflation level within 2 - 2.5% ranges, ensuring currency reserves availability, which would be equal to 3 - 4 months import volumes, improvement of direct social support, introduction of individual social insurance, development of engagement strategy, creation of favorable conditions for business progress are main governmental responsibilities.
Totally $3 bn would be required for realization of the program for 2002 - 2005. Supposedly inner funds would make $1.3 bn from this total and $1.7 b would be allocated for realization of this program in account of foreign borrowings.
In the beginning of 2004 the government of the country determined the operation plan for poverty reduction in the country for the period up to 2015. 15 working groups are engaged in the development of this plan.
IN 2005 - 09 UNISEF INTENDS TO ALLOCATE $9.5 MM TO AZERBAIJAN
"Interfax-Azerbaijan" informs that such information was published on the presentation of the program of cooperation of the government of the country and the UNISEF for 2005 - 2009.
Three working groups will work out projects of the UNISEF and poverty reduction, human rights protection, extension of the access of population to medical and educational services.
THERE IS NOT A NECESSITY IN SIGNING NEW DOCUMENTS ON MAINTAINING REGIME OF FIRE STOP IN THE AREA OF THE NAGORNI KARBAKH CONLICT - THE PRESIDENT OF AZERBAIJAN MR. ILHAM ALIYEV
Speaking on the meeting in the Supreme Mejlis of the autonomy, the President of Azerbaijan has expressed a hope on achieving peaceful agreement between the sides based on principles of "justice and international laws". He has noted that Azerbaijan keeps several principles in adjustment of the Karabakh conflict and never refuse never of them". "The territorial integrity of the country should be restored and refugees should return to their homes", - Mr. Aliyev has emphasized - We can negotiate on a base of these principles, however no peaceful agreement is possible without these conditions", - the President of Azerbaijan has declared.
THE USA INTEND TO CONTINUE THE DIALOGUE ON NAGORNI KARABAKH AND CAUCASUS WITH RUSSIA, MRS CONDOLES RICE HAS DECLARED
"We try to adjust a number of conflict situations jointly with Russia, - the US President Assistant has said, - I think that we have been disappointed in some degree that it has not been managed to make this for the present. We would like that the governments of Azerbaijan and Armenia would adjust seriously again the problem of the Nagorni Karabakh", - Mrs. Rice has said.
By her opinion, the conflict "negatively affects on both Armenia and Azerbaijan in economic and politic progress of these countries" and "has bee delayed for too long time".
THE FORMER SPEAKER OF THE ARMENIAN PARLIAMENT: THE AUTHORITIES HAVE NOT A POLITICAL WILL FOR ADJUSTMENT OF THE KARABAKH CONFLICT
As the Agency Mediamax informs, Babken Ararskyan has said in his speech in the National press club that "10 years, which have passed since a day of fire stop in the zone of the Nagorni Karabakh conflict is a great achievement for all sides of the conflict, however to date Azerbaijan manages the situation - it does not stops talking about occupation its territories by Armenia".
By the words of the former speaker, "the policy of the present authorities of Armenia have brought to that the conflict is considered as a territorial dispute between Armenia and Azerbaijan, however, the issue of independence of people of Nagorni Karabakh is an essence of problem".
He has also declared that today the position of Armenia in the negotiation process is not so powerful "as a legitimacy of the authorities of the country causes many questions".
ABOVE 2 MM TONS OF OIL HAVE BEEN PRODUCED ON THE FIELD "CHIRAQ" FOR FOUR MONTHS OF 2004
As Media-Press has been informed in the press service of BP-Azerbaijan, on April the oil production on "Chiraq" made 513 thou tons of oil. The oil exportation by the pipeline Baku - Supsa made 2.37 MM tons for 4 months of 2004. On April 518 thou tons were produced. Totally 6.7 MM tons of oil should be produced in 2004 from the field "Chiraq" by the AIOC.
Within frameworks of the project "Early Oil" of Azerbaijan the Azerbaijan Operating Company (AIOC) has produced above 240 MM barrels of oil (about 33 MM tons) since November 1997.
Since the beginning of the operation the platform Chiraq-1 installed in the Caspian Sea worked practically without interruptions. Owing to modernization of constructions and equipment on the platform and the Sangachal oil terminal the productivity of "Chiraq-1" has been increased up to 146 thou barrels of oil per diem. At the present time 14 oil and water pumping wells are operated on the platform.
The average daily oil production from the offshore platform "Chiraq-1" made 131 thou barrels, however this year production of 125.000 barrels per day is expected. This slight reduction rate compared to 2003 is due a number of planned shut downs on the platform later to complete critical work, including installation of a pipe riser at Chiraq to connect to the new Central Azeri structures, and the electrical tie-ins of the EOP Sangachal equipment to the expanded Sangachal equipment. Moreover, by a schedule three operation wells should be transformed to water pumping ones and this will affect on production rates too. By the results of the first quarter the average daily production on the platform has made 129 thou barrels.
The contract on the development of the fields "Azeri - Chiraq - Guneshli" has been signed on September 20, 1994. The following companies are shareholders of the project: BP-34,1367%, Unocal -10,2814%, ExxonMobil -8,0006%, Devon Energy - 5,6262%, Amerada Hess -1,0413%, the SOCAR -10%, INÐEX -10%, ITOCHU -3,9205%, Statoil - 8,5633%, TPAO -6,75% and Delta Oil -1,68%.
SINCE THE BEGINNING OF THE YEAR 301.8 THOU TONS OF OIL HAVE BEEN PRODUCED ON THE ONSHORE FIELDS OF AZERBAIJAN
For the mentioned period the JC and OC have delivered 277.5 thou tons of oil to the state and this exceeds the planned rate by 13.4% and the analogous rate of 2003 by 3% (269.5 thou tons).
Oil production on the onshore fields for January - April made 45.9 MM cubic meters and this is by 54.5% more than it was planned and exceeded by 13.9% the rate of January - April of 2003. The state has received 27.3 MM cubic meters or by 18.2% more than it was planned.
Two OC - Karasu Operating Company (block "Mishovdag - Kelametdin") and Salyan Oil (block "Kyrsangi - Garabagli) as well as three JC - the Azeraijan-German AzGerNeft (the field "Ramani"), the Azerbaijan-British ShirvanOil (the field "Kyurovdag" and the Azerbaijan-Turkish Anshad Petrol (block "Neftchala-Khilli-Durovdag) operate on the onshore fields of Azerbaijan.
AZERBAIJAN DOES NOT INTEND TO SHARE IN THE PROJECT OF THE OIL PIPELINE ODESSA - BRODI
The President of the SOCAR has informed that Ukraine has offered to Azerbaijan investing means to the project "Odessa - Brodi". We invest large means to the construction of the oil pipeline Baku - Tbilisi - Ceyhan. We shall have reliable pipeline and sharing in other pipeline projects would be incorrect", - he has said.
Mr. Natiq Aliyev has not excluded that during the forthcoming state visit of the President of Azerbaijan to Ukraine in the beginning of June, issue on joining of Azerbaijan to the project Odessa - Brodi will be discussed. By his words, issue on foundation of transport route for oil deliveries for this pipeline may be negotiated. "If Kazakhstan, Turkmenistan or another country intends transport oil by the pipeline Odessa - Brodi in accordance with its own interests, we shall create all conditions for this", - the President has emphasized.
By his words, Baku has no objections against pipeline Odessa - Brodi, however everything bases on commercial issues. "Sharing in similar projects should not base on political ideas, but their economic attractiveness", - the President of the SOCAR has said.
Mr. N. Aliyev has also noted that he is not a supporter of signing the agreement on guaranteed quotas of pumping the Azerbaijan oil by the pipeline Odessa - Brodi. "We do not think that it is required to take any responsibilities", - the President of the SOCAR has said.
ON JUNE "LUKOIL" WILL RENEW NEGOTIATIONS ON THE PROJECT "ZIKH-GOVSANI"
Officials of "LUKoil" have noted that up to the end of May a decision on purchasing of the share of the Italian concern "Agip" in the joint company "LUKAgip", which operates in Azerbaijan, particularly on the project "Zikh-Govsani".
The President of the State Oil Company of the Azerbaijan Republic (the SOCAR), which shares 50% in the contract "Zikh-Govsani" does not approves increase of sharing of "LUKoil" in this agreement. In interview to journalists he has noted that this will change other conditions of the contract on sharing of oil from the field "Zikh-Govsani". By the words of Mr. N. Aliyev, the similar agreement was achieved between the sides in 2003 on the contract area "D-22" /Yalama/, the Caspian shelf, when the SOCAR transferred a half of its 40% sharing in this project to "LUKoil".
The SOCAR and "LUKoil" signed agreement on the project "Zikh-Govsani" on January 9 of 2001 during the official visit of the President of Russia Mr. Vladimir Putin to Azerbaijan. For the present the sides have by 50% of sharing in this agreement.
The fields Zikh and Govsani were put into operation in 30 - 40-s of the past century. Now 15 wells operate there and produce about 250 tons of oil per diem. By estimations of experts, remained producible supplies there make 26 MM tons of oil.
IS THE OPEC NOT ABLE ALREADY TO AFFECT ON PRICES FOR OIL?
"The OPEC has still reserves for increase of the production, however this scarcely will bring to significant fall down in prices - the analyst of the oil agency Argus Mrs. Natalya Borsova says. - Factors, which may not be controlled by the OPEC affect as before on the market: a situation on the benzene market in the USA as well unstable situation in the Middle East are reflected at prices for oil.
Experts are assured that if rates remain above $40 during the next two weeks, they will be kept up to the end of the year on this level. "The psychology of the market may significantly change, - the agency Reuters quotes words from the report of Mr. Pall Horsenel from the bank Barclays Capital. - Reception of he normal spectrum may be sharply revised on behalf of increase. Undoubtedly, if a level by $40 remains a treaty of increase up to $50 will appear". The newspaper "Vremya novostey" informs about this.
