THE PARLIAMENT ASSEMBLY OF THE NATO WILL CONDUCT SEMINAR "ROSE ROAD" IN BAKU
BAKU.31.05.2004.MEDIA-PRESS:
The Chief of the Parliament Assembly of the NATO has given an agreement for conduction of the seminar "Rose Road" in Baku, the Agency Regnum informs. By the words of the chief of the Parliament Delegation of Azerbaijan in the PA of the NATO Mr. Ziyafet Askerov, recently the information from the authorities of this structure was received. And agreement with conduction of the next seminar in Baku is expressed in the message.
BAKU.31.05.2004.MEDIA-PRESS:
Before the out of turn 131st conference of the OPEC in Beirut analysts express different opinion, which are often are opposite to each other, which decision will be taken by the world oil cartel: whether it keeps quotas for oil production and export, or increases them for reduce prices for "black oil" or temporarily refuses of quotas. And each of versions bases on realities in cartel and situation on the world energy market. Experts' opinions are the same only in one thing: there is not solidarity among the members of the OPEC on issue of quotas. By the words, the President of the cartel Mr. Purnomo Yusgiantoro has confirmed this.
BAKU.31.05.2004.MEDIA-PRESS:
The President of Azerbaijan Mr. Ilham Aliyev will discuss key issues of mutual cooperation, cooperation at international and regional levels, cooperation in transportation of energy carriers to Europe during his state visit to Ukraine on June 3 - 4. He will conduct negotiations with the Ukrainian President Mr. Leonid Kuchma and other chiefs of the country. By their results a number of bilateral documents should be signed.
BAKU.31.05.2004.MEDIA-PRESS:
On June 1, the 11th International Exhibition and Conference "The Caspian Oil and Gas-2004". In this case 338 companies from 28 countries will take part into it: Azerbaijan, Austria, Bahrain, Brazil, Kazakhstan, Georgia, Russia, Ukraine, Croatia, Denmark, Finland, France, Greece, Italy, Turkey, the Great Britain, the USA, Iran, Japan, the Saudi Arabia, Switzerland, China, Lithuania, Luxemburg, UAE and Singapore. Transnational oil and gas companies, companies and equipment suppliers as well as one operating in energetic field services are among the participants of the exhibition.
BAKU.31.05.2004.MEDIA-PRESS:
The further development of the Iranian project of the import of the Central Asian and Russian oil by replacement scheme will make using the pipeline Baku - Tbilisi - Ceyhan uneconomical. The Chief of the Organization of Transportation and Terminals of Iran, the Deputy Minister of Transport of and Communication Ways Mr. Masud Ansari has said this on the conference "Transport Economy" in Tehran.
BAKU.31.05.2004.MEDIA-PRESS:
"The Law of D'Amato" on sanctions against Iran accepted in the period of governing of Bill Clinton seems to crack. A low efficiency of these sanctions was proved by tim and the American companies lost most of all from them. And experts and chiefs repeatedly declared about damages for anti-Iran sanctions.
BAKU.31.05.2004.MEDIA-PRESS:
The Board of the Directors of the Russian "Transneft" has approved the sharing of the company in the development of the project of the Transfracian oil pipeline.
BAKU.31.05.2004.MEDIA-PRESS:
The states-members of the OPEC have not conducted relevant preparations for the present to the new marine anti-terrorist code of the UN, which enters into force on July 1, 2004. So the export deliveries of crude oil carrying out by sea to the USA and some other countries-oil consumers may be held with interruptions.
BAKU.31.05.2004.MEDIA-PRESS:
The rate of the Azerbaijan manat relatively to the USA on April of 2004 has strengthened by 0.18%, the "Interfax-Azerbaijan" has been informed in the National Bank of Azerbaijan.
BAKU.31.05.2004.MEDIA-PRESS:
In Baku the study business center will be formed in Baku. As Media-Press has been informed in the Ministry of the Economic Development, the center will be created within frameworks of the stated programs "The Development of Small and Middle Business in 2002 - 2005" and "The Social-Economic Development of Regions of Azerbaijan in 2004 - 2008".
In connection with this the General Secretary of the PA of the NATO Mr. Simon Lann and his Deputy Mr. Andrea Chellino will visit to Baku for discussing agenda of the seminar and issues connected with its organization.
We shall remind that conduction of such seminar in Baku was provided still on November of the past year however it should be postponed for the Parliament Elections in Russia and changes in Georgia.
A CHOICE BETWEEN VERY BAD AND VERY BAD DECISION SHOULD BE MADE ON THE CONFERENCE OF THE OPEC IN BEIRUT
In accordance with his statement, "members of the cartel has not achieved still a consensus on oil quotas ad will discuss this problem in out of turn 131st conference of the OPEC in Beirut on June 3.
As it is known, the Saudi Arabia has suggested recently increasing quotas for production and exporting oil deliveries by two billion barrels per diem. However some members of the cartel have not suggest this suggestion, in the first turn Venezuela, the President of which Mr. Ugo Chaves has emphasized that "Caracas will oppose strictly against any changes of the oil quotas".
By the estimation of Mr. Yusgiantoro, in common the countries of the OPEC produce 2.3 MM bbl of oil per diem over quotas (without taking Iraq into account). On a base of this, Mr. Yusgiantoro considers possible to support the offer of Riyadh and make legal the reproduction of oil by members of the cartel.
However, taking into account that all decisions of the OPEC are taken exclusively on a base of consensus, most likely a serious struggle will take place on the Beirut conference with forcing Venezuela and other members of the cartel, which oppose to increase of the export volumes, some analysts consider.
However, the OPEC may go in another way, the high-ranked official of the General Secretariat of the cartel considers; the RIA "Novosti" makes a reference to him. On the Beirut conference acceptance of the decision on increasing of quotas may be postponed for indefinite period. And the majority of the countries of the OPEC have used "a permission" of the President of the cartel and pump oil over quotas established for them, so making legal production and export over limits is not required for them.
And at last there is the most incredible decision offer - the OPEC may choose "a liberty", temporarily refusing of quotas. Moreover, as the periodical "Commersant" considers, such offer does not look uncredible because the OPEC has met the theoretical problem: taking into account the present overproduction, a simple increasing of quotas will be meaningless; it will only legalize exceeding of quotas and oil will be produced in the same proportions as to date.
If the OPEC wants to show that the production increases really, quotas should be increased by 5 MM bbl at once and not by 2 MM bbls as the Saudi Arabia offers. This will serve evidence that oil really increases by 2.5 MM bbl per diem. However, such increase will be very large; besides of other things, quotas should be shared proportionally between the members of the cartel and many of them have not a possibility to produce oil more (only great additional capacities of the Saudi Arabia).
Thus a version of entire refusal of quotas remains. Properly, at last year, before the war in Iraq, long time ago the cartel showed to the West that it is ready for this variant in a case of great increase in prices for oil. However, since the beginning of the war prices has not increased and in opposite they reduced and quotas were not removed. Up to date (as well as for situation in Iraq and the Middle East entirely) the prices are high as in wartime.
If there are not quotas at all, the Saudi Arabia may freely grow the production, the rest members of the cartel will assist to it if they have free capacities. And so non-standard solution may affect on the prices. And then just existence of the OPEC as the entity regulating activities of the largest oil producers in the world will become absurd. And this may bring to enough unexpected after-effects. So independently from a decision, which will be taken on the Beirut conference, it should show, although symbolically, that the OPEC is still able to affect on situation on the oil markets.
THE PRESIDENTS OF UKRAINE AND AZERBAIJAN WILL OPEN MONUMENTS TO GEIDAR ALIYEV AND ZARIFA ALIYEV
As well Mr. Ilham Aliyev will take part into opening of monuments to his father, the first President of Azerbaijan Mr. Geydar Aliyev in Kiev and mother Mrs. Zarifa Aliyeva in the town Irpen not far from the Ukrainian capital.
The Azerbaijan community of the city has offered to establish the monument to Mrs. Zarifa Alieva in Irpen. Earlier, as well as by the request of the Azerbaijan community the former Proletarskaya Street was renamed by name of Mrs. Zarifa Aliyeva.
ON JUNE 1 IN BAKU THE 11 INTERNATIONAL EXHIBITION AND THE CONFERENCE "THE CASPIAN OIL AND GAS"
The President of Azerbaijan Mr. Ilham Aliyev will take part in the ceremony of opening of the exhibition; participation of the Minister of Energy of Turkey Mr. Hilmi Guler, the State Secretary on Oil and Energy of Norway Mr. Oivind Khabrekke, the Special Envoy of the President of Russia on the Caspian Sea the Deputy Foreign Minister Mr. Victor Kalyuzni, the Special Advisor of the State Department of the USA on energetic development of the Caspian region Mr. Steven Mann, officials of the diplomatic missions accredited in Baku is expected.
By tradition, two days conference on issue "New Purposes and Possibilities in Satisfaction of Global Demand for Energetic Resources" will be held within frameworks of the exhibition. The Minister of Fuel and Energy of the Azerbaijan Republic Mr. Mejid Kerimov and the Special Envoy of the Premier of the Great Britain on Foreign Trade Mr. Brayan Wilson are elected co-chairmen of the conference.
40 reports will be made on the conference and they may be totalized into several thematic groups: "The Caspian Regional Development - Role and Strategic Goals of the International Social Organizations and Their Influence on the Local Economy". "The Modern Plans of Production and Transportation of Energy Resources in the Caspian Region" and "Requirements in the Development of the Energetic Industry of the Caspian Region".
The Special Envoy of the President of the RF on the Caspian Issues Mr. Victor Kalyuzni, the first Vice-President of the European Bank of Reconstruction and Development Mr. Norin Doyl, the President of BP-Azerbaijan Mr. David Woodward, the President of the State Oil Company of Azerbaijan Mr. Natiq Aliyev, the Main Executive of BTC Co. (Baku - Tbilisi - Ceyhan) Mr. Mike Townshand, the President of Statoil-Azerbaijan Mr. Georg Gundersen, the General Director on Planning of the Greek Gas Corporation DEPA Mr. Vasilious Tsombanopulos and many others.
The Exhibition "The Caspian Oil &Gas" is held in Azerbaijan since 1994. In the first one totally 150 companies from 12 countries took part; in 1995 - 160 companies from 14 countries; in 1996 190 companies from 20 countries; in 1997 - 250 companies from 25 countries. The largest number of companies: 431 from 30 countries took part in the exhibition of 1998. In 1999 - 309 companies from 29 countries, 2000 - 300 companies from 28 countries; 2001 - 337 companies from 25 countries; 2002: 300 from 28: in 2003 - 330 from 28 countries.
THE DEPUTY MINISTER OF TRANSPORT OF IRAN: INCREASE OF OIL IMPORT BY REPLACEMENT SCHEME WOULD MAKE UNECONOMICAL THE OIL PIPELINE BAKU - CEYHAN
By the information of Iran.ru Ansari has said that since March 2003 up to March 2004 a volume of swap operations with Central Asian countries made 4.5 MM tons. A cost of conditional transit of 1 ton of oil by this scheme made $20 - 22 and may be reduced up to $16 in a perspective.
And he has said that a cost of transportation of 1 ton of oil by the oil pipeline Baku - Tbilisi - Ceyhan being constructed will make no less $32. As a result at the further development of the Iranian oil import by the scheme of replacement using of the oil pipeline Baku - Ceyhan will be uneconomic and Iran will be able to ensure the oil import by replacement scheme in a volume of 18 MM tons.
The will of Mr. Ansari to develop the Central Asian oil replacement is understandable. However why does he mixes wills and reality? In the first turn it relates oil transportation tariffs on the oil pipeline Baku - Ceyhan being built. As Media-Press informed on April with a reference to the words of the President of BP-Azerbaijan Mr. David Woodward, "in accordance with the present accounting of the construction tariff for shareholders of BTC Co (Baku - Tbilisi - Ceyhan) will make $3 for bbl (that means slightly more than $22 for ton) and for other exporters it will be higher. "At determination of tariffs for non-shareholders of BTC Co. we shall base on situation on the world markets and other pipelines", - Mr. Woodward has emphasized.
By the information of Iran.ru the Deputy Chief of the Environmental Protection Organization Mr. Y. Khodjat has noted that a fact of contamination of the environment was recognized after analyses of after-effects of oil deliveries by the replacement scheme through the pipeline Neka-Rey. For the present analyses of other projects has not been conducted. As well he has emphasized that Neka borders directly with the Region Miyan-Kale, which is notable for its unique nature.
THE USA ARE FORCED TO PURCHASE THE IRANIAN OIL
As Iran.ru informs, in spite of that the law is still in the force, last information shows a revision of sanction policy of the White House. So the American periodical "The Baltimore Sun" informs that the USA need in the Iranian oil, although they are the third largest world oil producer.
In its turn the IA "Pars" informs with a reference to the Ministry of Finance of the USA, that in spite of sanctions applied against Iran, this ministry has given permission to two American companies for crude oil export from Iran. As well a sharing of the American company Halliburton in oil projects of the IRI is not excluded.
Official of the Ministry of Oil of the IRI has noted information on sharing of the American "Halliburton" in the development of 9 and 10 stages of the project "South Pars" and said that this company, which shared earlier in the development of the 1, 2 and 3 stages of this project, up to date has submitted application for participation in tender on this project. "The American companies are interested enough in sharing in oil and gas projects of Iran, however, for sanctions, they have not this opportunity", - the Iranian official emphasizes.
THE BOARD OF THE DIRECTORS OF "TRANSNEFT" HAS APPROVED THE SHARING OF THE COMPANY IN THE DEVELOPMENT OF THE PROJECT OF THE CONSTRUCTION OF THE TRANSFRACIAN OIL PIPELINE
As it is noted in the press release of the company, the projected oil pipeline passes through the European part of Turkey from the settlement Kiyikey in the southwest of Black Sea coast up to the town Ibrikhaba. The supposed volume of the oil pumping makes 60 MM tons per annum (that is by only 2 MM tons less than export volumes of Russia delivered through Bosphorus and Dardanelle - Media-Press).
"Extremely intensive situation formed in region of the straits of Bosporus and Dardanelles for bad weather and limitations for passing of the tankers applied by the Turkish authorities causes a necessity of searching for new ways of the Russian oil transportation to the world markets," - it is noted in the press release.
"Taking the formed situation into account "Transneft" shares in the studying the project of the transportation of the Russian hydrocarbons by the oil pipeline Kiiykey-Ibrikhaba passing by Bosphorus and Dardanelle" - the press release tells.
On June of 2003, the presentation of this project was held in the Ministry of Energy of Turkey: the group of companies ANADOLU (Turkey) submitted it and on December of this year the memorandum on mutual understanding was signed between "Transneft and ANADOLU". The working group was organized and officials of the OJC "TNK-BP Management" and the OJC "Tatneft" joined into it for cooperative studying of the project and analyzing of its technical-economic rates. By the words, TNK-BP and "Tatneft" have given guarantees to the Turkish side for oil pumping within frameworks of the planned oil pipeline, and the President of "Transneft" Mr. Semen Vineshtock informed recently about this.
By preliminary estimates, investment expenses will make about $900 MM. The calculated tariff for oil pumping by the projected oil pipeline (taking transshipments in ports into account) will make $7.47 in the period of payments on credits and $3.04 for ton after payments. "Interests of both the sides - the Russian and Turkish allows to reduce significantly political risks of this project", - the information tells.
At the same time the transport expenses by the new route may make as minimum by $1 higher than by one operating through Bosporus taking into account the double oil transshipment at first to Kiiyikey and then to Ibrikhaba. A this means that Russia will loose as minimum over 60 MM dollars per annum taking supposed volumes of pumping by the future oil pipeline into account.
THE COUNTRIES OF THE OPEC WILL NOT HAVE A TIME FOR APPLY THEIR OIL TRANSPORTATIONS TO THE START OF ENTERING INTO FORCE OF THE INTERNATIONAL CODE
As RIA "Novosti" reports, such members of the OPEC as Indonesia, Saudi Arabia, Kuwait and Nigeria are not ready still for realization of the given document and scarcely are able to make real steps for applying of their marine oil transportation to the International Code in the rest time.
Making strict safety requirements to the international transportations including marine ones has started after terrorist actions in the USA on September 11, 2001 and the International Code on guarding ships and port constructions was accepted at the session of the UN Committee on Navigation Safety on December of 2002.
As experts believe, entering into force of the IC may cause of redistribution of sea cargo flows in the world routes including as well tankers flows.
From their own side officials of the frontier services, guarding sea frontiers of the USA and other countries-oil consumers declare that since July 1 they shall not permit trade ships and tankers shipped by oil and liquidated gas if they have not a relevant certificate. Particularly, the US' authorities are afraid of that just in sea way terrorists of "Al-Kaeda" and other organizations may deliver nuclear "dirty bomb" or other weapons of mass destruction.
THE AZERBAIJAN MANAT HAS STRENGTHENED BY 0.18% RELATIVELY TO DOLLAR
At the same time the devaluation of manat as compared to April 2003 made 0.28%. By data of the NBA, on April of 2004 the course of the national currency varied within ranges 4918 - 4924 manats for $1. An average course made $4921.33 manats/$1.
The state budget for 2004 provides the average course will make 4975 manats/$1.
THE STUDY BUSINESS-CENTER WILL BE CREATED IN AZERBAIJAN
Teaching businessmen to bases of business conduction as well as their consulting and information services rendering. For this creation of the information-resource base is planned as well on a base of the center.
Such business-centers will be created in the other regions of Azerbaijan on the next stages.
