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FOR JANUARY - AUGUST THE SOCAR HAS PRODUCED ABOUT 6 MM TONS OF OIL

BAKU.03.09.2004.MEDIA-PRESS: Since the beginning of the current year the State Oil Company of Azerbaijan and the JC founded with its sharing have produced 5.989 MM tons of oil and this is by 2.7% or 156.8 thou tons more than it was planned. As Media-Press has been informed in the SOCAR, the departments of the SOCAR produced 5.375 MM tons (a growth makes 0.8%); the JC produced 614.1 thou tons (a growth makes 23%). The production has grown by 0.6% in comparison with the analogous period.
On August the SOCAR produced 758.2 thou tons of oil and this is more by 16.9 thou tons or 2.3% than it was planned. The oil and gas departments produced 677.6 thou tons of this volume and the joint enterprises 80.6 thou tons.
In accordance with forecasts, in 2004 oil production in Azerbaijan will make 15.45 MM tons and the SOCAR will produce 8.75 MM tons of them; and the Azerbaijan International Operating Company (AIOC) will produce 6.7 MM tons and 9.2 MM tons will be exported. 6.7 MM tons will be pumped via the pipeline Baku - Sups and 2.5 MM tons - via the route Baku - Novorossisk.


SINCE THE BEGINNING OF THE YEAR 3.32 BN CUBIC METERS OF GAS WERE PRODUCED

BAKU.03.09.2004.MEDIA-PRESS: For January - August of the current year 3.32 bn cubic meters of gas were produced in Azerbaijan and this is by 3.1% higher than it was forecasted.
As Media-Press was informed in the State Oil Company of Azerbaijan, departments of the SOCAR produced 2.669 bn cubic meters of gas; the AIOC produced 651.8 MM cubic meters. The joint enterprises produced 83.6 cubic meters of gas.
On August gas production has made 424.1 MM cubic meters. A share of the SOCAR made 335.5 MM cubic meters; the AIOC - 88.6 MM cubic meters. The JC produced 8 MM cubic meters.
Azerbaijan needs in up to 10 - 12 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.


ON AUGUST THE MARKETING AND ECONOMIC OPERATIONS DEPARTMENT OF THE STATE OIL COMPANY OF AZERBAIJAN HAVE EXPORTED 237.2 THOU TONS OF OIL AND 94.73 THOU TONS OF OIL PRODUCTS

BAKU.03.09.2004.MEDIA-PRESS: The MEOD of the SOCAR exported 94.73 thou tons of oil products.
As Media-Press have been informed in the SOCAR, diesel fuel and motor benzene made the major share of the export. 48.056 thou tons and 32.372 thou tons correspondingly of them were delivered to foreign buyers. 12.681 thou tons of aircraft kerosene and 1.62 thou tons of butane were exported. The furnace fuel was not exported on August. Totally since the beginning of the year 598.098 thou tons of oil products were exported via the MEOD. The Azerbaijan diesel fuel is of great demand. Since the beginning of the year 277.768 thou tons of it were exported that is most a half of all exported oil products.
The SOCAR exported 237.205 thou tons of oil via the pipeline Baku - Novorossisk. And 1.728 MM tons of oil were exported for eight months.
Me shall remind that in the current year volumes of pumping on this route will remain almost on the former level and make 2.5 MM tons. Tariff on pumping of the Azerbaijan oil on the "northern" route make $15.67 per ton. (For comparison: tariff on transit of the Azerbaijan oil by the pipeline Baku - Supsa makes 2.7 per tons).
The pipeline Baku - Novorossisk was put into operation on October 25, 1997. In accordance with the intergovernmental agreement signed on January 1999 it is automatically prolonged every year if one of the sides does not inform the second one about intension of stopping its denunciation before a half a year up to date of its expiry. Each five years the sides may introduce changes into the document by mutual agreeing.


"AZERIGAZ" AND "GAZEXPORT" HAVE AGREED ON INCREASING OF GAS DELIVERIES TO AZERBAIJAN BY 20%

BAKU.03.09.3004.MEDIA-PRESS: The JC "Azerigaz" has achieved the agreement with the JC "Gazexport" on increasing of volume of monthly gas deliveries to Azerbaijan up to the end of 2004 by 20% up to 18 MM cubic meters.
By the information of the Chief of "Azerigaz" Mr. Alikhan Melikov, at the present time Azerbaijan receives 15 MM cubic meters of gas per diem. However, taking into consideration that for accidents on the main gas pipeline Mozdok - Gazi-Magomed gas deliveries stopped several times, the sides have agreed that "Gazexport" will increase monthly delivery of "blue fuel" up to 18 MM cubic meters. This will allow compensation of undelivered volumes, Mr. Melikov has said.
Gas was delivered to Azerbaijan in accordance with the contract between the State Oil Company of Azerbaijan and the OJC "Gazexport". In accordance with the document, "Gazexport" should deliver 5.5 bn cubic meters of gas to Azerbaijan in 2004 for $52 per 1 thou cubic meters.
Gas import from Russia to Azerbaijan has started from the end of 2000 by the gas pipeline Shirvanovka - Mozdok - Gazi-Magomed. During 2001 - 2003 gas was purchased from "Itera", since 2004 - from "Gazexport". The major part of imported gas is delivered to heating electric station for production- of electric power station. Owing to import, gas produced in Azerbaijan in a volume exceeding 5 bn cubic meters is delivered for satisfaction of needs of population.
Totally 12 - 14 bn cubic meters make natural gas demands of Azerbaijan per annum.


"AZERIGAZ" INTENDS PUMPING OF 600 MM CUBIC METERS OF GAS TO TANKS

BAKU.03.09.2004.MEDIA-PRESS: The JC "Azerigaz" intends pumping of no less 600 Mm cubic meters to the underground gas tanks meanwhile this volume have made 547 MM cubic meters at last year.
As the Chief of the Company Mr. Alikhan Melikov has said, for the present time 310 MM cubic meters of gas have been pumped to the UGT at the present time. Each month this rate increases approximately by 6 MM cubic meters: local gas makes a half of this volume and gas imported from Russia makes the the rest part. It is supposed to complete the pumping by November.
Mr. A. Melikov has noted that if gas import from Russia stops, gas pumping to tanks of Azerbaijan stops also. Gas pumping usually starts on April and ends on November.


"GAZPROM" AND BOTAS HAVE ACHIEVED THE AGREEMENT ON RE-EXPORT OF THE RUSSIAN GAS TO THE THIRD COUNTRIES

BAKU.03.09.2004.MEDIA-PRESS: The officials of the Russian "Gazprom" and the Turkish state pipeline company BOTAS have achieved the agreement on re-export of the Russian natural gas to the third countries. The negotiations between the technical experts were conducted in the Turkish capital.
As the Chief of the Turkish-Russian business Council Mr. Turgut Gur has informed, in accordance with the achieved agreements, Turkey will receive permission for sales of remainders of the Russian natural fuel to such countries as Suria and Israel. As well as agreements on some other problems have been achieved.
Particularly, Mr. Gur has noted, "Gazprom" and BOTAS will take part jointly in the construction of underground gas tank under the lake Tuz situated in 200 km to the east from Ankara.


THE FIRST OIL WILL BE DELIVERED TO ODESSA VIA THE PIPELINE FROM BRODI IN THE END OF SEPTEMBER

BAKU.03.09.2004.MEDIA-PRESS: The commercial oil pumping via the oil pipeline "Odessa - Brodi" will start up to the end of September. The Chief of Department of the JC "Naftogaz Ukraini" Mr. Yuri Boiko has declared about this.
By the words of Mr Boiko, the oil pipeline will be filled up by the technological oil by September 20 already and up to the end of month the first oil will be delivered to Odessa. He has added that already in the next time the first tanker will be ordered.
As Boyko has informed, "Ukrtransnafta" and the Russian "Transneft" negotiate on conclusion of long-term contracts on volumes and conditions of the Russian oil transportation.
We shall remind that on July of 2004 "Ukrtransnafta" has signed the contract with the TNK-BP on pumping of 9 MM tons of oil by the pipeline "Odessa - Brodi" in reverse direction during three years. The contract provides 100% advance payment for services on oil pumping and the principle "take or pay".
Although the issue on reverse of the pipeline "Odessa - Brodi" has not been adjusted finally, Poland tells about this fact with disappointment as before. As it is known, Warsaw has associated some hopes with this pipeline accounting reception of oil via this pipeline for its oil processing plants. Now it should wait for it three years as minimum.
"Poland has been disappointed by the decision of Ukraine on reverse consumption of the oil pipeline "Odessa - Brodi". This does not corresponds to out agreements", - the Ambassador of Poland on Ukraine Mr. Marek Zyulkoski has said.
At the same time he has noted, that the issue of the oil pipeline "Odessa - Brodi" remains the constant issue of consultations of the governments of both the countries. Particularly, the Polish side tries to find out, when and in what conditions returning to direct using of the oil pipeline is possible, the Kiev periodical "Delovaya Nedelya" informs.


UP TO THE END OF THE YEAR AZERNERJI WILL PREPARE THE PROJECT OF THE CONSTRUCTION OF THE ORDUBAD HEPS IN NAKHCHIVAN

BAKU.03.09.2004.MEDIA-PRESS: Up to the end of the year the specialists of "Azerenergi" will prepare the project of the construction of the Ordubad HEPS in the Nakhchivan Autonomous Republic (NAR).
The construction of this electric power station would promote the soonest liquidation of energy deficiency in the autonomy as energy produced by the Ordubad HEPS would be capable to cover 30% of demands of the NAR.
As the press-service of "Azenerji" informs, several versions of realization of the project are considered. At the present time experts agree their correspondence to local conditions. By the words of the Director of the Institute "Bakgidropoekt" Mr Aidin Piriev, so-called tunnel variant is the most purposeful. A capacity of the station will make 45 MWt. The relevant feasibility report of given version is ready already.


AZERBAIJAN PLANS OPENING OF EMBASSIES IN ELSE 10 COUNTRIES

BAKU.03.09.2004.MEDIA-PRESS: Azerbaijan plans opening of its Embassies in else 10 countries, the President of Azerbaijan Mr. Ilham Aliyev has said in the talk with the journalists in Nakhchicvan.
"Azerbaijan should be more active in the world and defend its position. We have not enough representations abroad so plan opening of them in else 10 countries", - Mr. I. Aliev has said.
At the same time the President of the AR has commented appointment of Mr. Gasanov the Ambassador in Hungary and Mr. Tamerlan Garayev to India. "As to appointment of Mr. Gasan Gasanov and T. Garayev - they both have been diplomats. Mr G. Gasanov have the Ambassador of Azerbaijan in the UNO for a long time and the Foreign Minister of Azerbaijan; he has great diplomatic experience and I think that we should use it. Mr. T. Garayev have worked the Ambassador in China and represented fittingly Azerbaijan", - Mr. I. Aliyev has said.
"Before the President Elections and after I declared that I value each citizen of our country. Many events emerged in the past, many errors have occurred. Civil war passed in Azerbaijan. However, as you know, I has pardoned persons who made crimes in Azerbaijan. And I have made this not because I had considered them political prisoners. I keep my own opinion that some of these pardoned persons have not been political prisoners", - the President has said.
"There are new objectives of Azerbaijan and we must develop our country and mobilize our citizens. We have achieved national piece and we must strengthen this. So our offer is leaving disagreements in the past. This is my intension; and if the other side listens this I am glad for this. If it does not listen, then this a blame of the other side", - Mr. I. Aliev has said.


ON SEPTEMBER RUSSIA, AZERBAIJAN AND IRAN WILL DISCUSS FURTHER STEPS ON FOUNDATION OF RAILWAY CONSORTIUM

BAKU.03.09.2004.MEDIA-PRESS: The third sitting of the working group on foundation of the Russian-Azerbaijan-Iran consortium on the construction main line from Iran up to Russia will pass in the end of September, officials of the Ministry of Transport have informed the agency "Interfax-Azerbaijan".
As it has been informed, the new line will become one of key links of the international transport "North - South".
During the sitting the chiefs of railways of Iran, Russia and Azerbaijan will discuss issues of financing of a number of projects necessary for functioning of the transport route and sharing of each side in it.
Officials of the Ministry of Transport have noted that construction of several pieces of railway on the territory of Iran would be necessary. However to date the Iranian side has not started even projecting of pieces of connection of railway infrastructures of Azerbaijan and Iran. By opinion of experts of the Ministry of Transport, this is associated with the wish of the Iranian side to attract the Russian companies to this work.
Earlier the Chief of the OJC "The Russian Railways" Mr. Gennadi Fadeev has declared about a readiness of the Russian side to render finance assistance in realization of projects on construction of the road.
Besides, during the forthcoming meeting discussions on choosing of country, on territory of which the trilateral consortium will be registered, are planned. As the official of the Ministry of Transport of Azerbaijan has noted, Azerbaijan may appear as the depositary country, though the given issue will be adjusted in accordance with results of forthcoming consultations.
As it has been informed, the consortium on completion of projecting, construction and further operation of railway will be represented as juridical person - OJC. The working group has prepared preliminary offers about finance model of founded consortium, where responsibility and guarantees of each side are determined. Up to October 15 the sides will present candidatures of their representatives to administration organs as well as their remarks and offers on foundation documents.
Supposedly primary total of authorized capital of the new JC should make $6 MM and the sides will share it equally.


THE PRODUCER OF THE RUSSIAN SUBMARINES WILL DELIVER CIVIL PRODUCTION TO THE CASPIAN SEA

BAKU.03.09.2004.MEDIA-PRESS: The delegation of the North Dvin defense enterprise "Sevmash" under the head of the General Director Mr. Vladimir Pastukhov have visited to Azerbaijan. As the IA REGNUM informs, agreeing on enlarging of cooperation of "Sevmash" with the Azerbaijan partners, particularly the Baku Scientific-Production Company "Prompribor", which delivers a number of details for the atomic submarines was a goal of he trip.
Issues of enlarging of cooperation were discusse at the meeting and information on capabilities of "Sevmash" in civil ship construction, production of oil and gas equipment has caused especial interest of the Azerbaijan side.
Now the North Dvin enterprise should prepare enlarged presentation of production of "Sevmash" for causing of interests of Azerbaijan and the Caspian Region in partnership. The presentation should take place on September 20. In the beginning of October the analogous measure will be conducted for oil and gas companies of Kazakhstan.
Gas import from Russia to Azerbaijan has started from the end of 2000 by the gas pipeline Shirvanovka - Mozdok - Gazi-Magomed. During 2001 - 2003 gas was purchased from "Itera", since 2004 - from "Gazexport". The major part of imported gas is delivered to heating electric station for production- of electric power station. Owing to import, gas produced in Azerbaijan in a volume exceeding 5 bn cubic meters is delivered for satisfaction of needs of population.
Totally 12 - 14 bn cubic meters make natural gas demands of Azerbaijan per annum.


THE EXTERNAL TRADE TURNOVER OF AZERBAIJAN MADE $3.6 BN FOR SEVEN MONTHS

BAKU.03.09.2004.MEDIA-PRESS: The external turnover of Azerbaijan increased for seven months of 2004 by 33.3% as compared to the same period of 2003 and made $3.6 b. A volume of export grew by 32.3% (1.8 bn); import - by 34.3% ($1.8 bn).
A share of countries of the CIS made 28.2% of turnover on January - July; a share of countries of the EU made 40.4%. Totally a share of the European countries made 56.9% of goods turnover; a share of the Asian countries - 39.8%; 2.6% - a share of the American countries; a share of the African countries - 0.5% and a share of countries of Oceania - 0.2%.
For the mentioned period trade operations with 115 countries were made. Italy, Russia, Turkey, Kazakhstan, the Great Britain, France, Iran, Germany, Turkmenistan, the USA, Ukraine, China, Malaysia and Japan were main trade partners of Azerbaijan.
We shall note that for the last year external goods turnover of Azerbaijan made $5.218 bn. Export was equal $2.592 bn; import - $2.626 bn. As a result in 2003 negative balance of external trade turnover by a total of $34 MM have been got. During the last year Azerbaijan carried out trade operations with 129 countries.
The government of Azerbaijan forecasts increasing of external trade volume up to $6.156 bn in 2008.


THE VOLUME OF MONETARY MASS TURNOVER HAS MADE 2.925 TRLN MANAS ($596.3 MM) IN AZERBAIJAN

BAKU.03.09.2004.MEDIA-PRESS: By August 1 of the current year a volume of monetary mass turnover made 2.925 trln manats in Azerbaijan and this rate is higher by 1.9% as compared with the analogous period of the past year (4905 manats - $1).
As Media-Press has been informed in the press service of the National Bank of Azerbaijan (NBA), 2.068 trln manats of the total volume made a share of cash money makes 2.068 trln manats and cashless money make 857.4 bn manats. As compared with July 1 of the current year cash monetary mass increased by 59.4 bn manats and cashless one - by 0.5 bn manats.


ABOUT 31 THOU BUSINESSMEN IN AZERBAIJAN HAVE BEEN PROVIDED WITH SPECIAL "CHECK BOOKS"

BAKU.03.09.2004.MEDIA-PRESS: About 31 thou businessmen in Azerbaijan have been provided with special "check books". The Ministry of Economic Development of Azerbaijan has informed Media-Press about this.
We shall remind that in accordance with the Edict of the President of Azerbaijan "On Improvement of the State Check System and Removal of Artificial Barriers Preventing to Business Development", all enterprises must have so called "check books" independently from property form. This document allows registering of all checks, carried out by tax services and revealing of illegal or out of plan inspection. Officials of tax services may carry out checks only after submitting of relevant permission and certain registering of fact of checking to the "check book". Moreover, the official of the MED should present during the check. We shall note that in the past year above 40 officials were retired from the MT for illegal checks and above 200 persons were punished in administrative order.


THE MINISTER OF TURISM OF GREECE WILL VISIT TO AZERBAIJAN

BAKU.03.09.2004.MEDIA-PRESS: The Minister of Tourism of Greece Mr. Dimitris Avramopulos will arrive in Azerbaijan with the state visit. The Minister of Youth, Sport and Tourism of Azerbaijan Mr. Abulfaz Garaev has informed about this on press conference in Baku.
"An agreement on the visit of the Greek Minister was achieved during the Olimic Games in Athens where we have agreed that he will visit to Azerbaijan on April of 2005", - Mr. Garayev has said.
By his words, the Ministry of Tourism of Greece was founded relatively recently and ex-major of Athenes is a Head of it. "Expectedly, our Ministries will sign agreement on cooperation in Baku and this will allow attraction of investments to the Azerbaijan tourism", - Mr. A. Garaev has said.


BLACK DAYS FOR THE CASPIAN FISHERMEN ARE PREDICTED

BAKU.03.09.2004.MEDIA-PRESS: The UNO intends forbidding of the black caviar export in future year. The CITES has signed recently the relevant resolution. By the words of the General Secretary of the Agency Mr. Jim Armstrong, these strict measures have been taken because the agreement dated from 2001 obliging countries-suppliers to inform the CITES about volumes of illegal fishing of sturgeons has not been executed.
"The main countries-exporters situated on coast of the Caspian Sea, have not be able submit precise data on poachers' fishing of sturgeons", - he has said.
As the newspaper "Vremya Novostey" reminds, limitations on sturgeon caviar were introduced still in 1998 for growth of poaching. They include 20 species. It should be mentioned tat limitations does not touch trades on internal markets and exportation of caviar from fish farms where sturgeons are bred in artificial conditions.
The Caspian countries such as Azerbaijan, Russia, Kazakhstan and Iran are the main black caviar suppliers. Iran shares 51% of all the volume of fishing and export of sturgeons in the Caspian Sea. The rest states share 49% between each other. In accordance with the statistics, in the past year all four countries have sold 150 tons of caviar abroad. On the West one gram of caviar costs $3.5 and market price of one kg of the Caspian black delicates of the best quality may exceed $6 thou. By the words of Mr. Armstrong, Iran is the most honest in this business. "Poaching is not highly developed in Iran, - he has said. However, in Russia illegal trade may be so wide-scaled that if real volume of fishing is calculated, no quotas will be sufficient in the next future.
Besides of introduction of forbid of export of black caviar, the CITES intends to conduct own studies of turnover on illegal fish market. And as Mr. Armstrong has emphasized, if bad results are got, legal quotas for fish export by Russia will be possibly removed for uncertain period. He has noted also that Russia and Kazakhstan understand a fight against poaching as hunting for foreign fishermen in coastal waters. "In both countries, in accordance with information of fishermen, traders, officials of local authorities, poaching, which was not attended in the Soviet period, has become a mean of surviving in last 15 years", - the official of the CITES has emphasized.
And these words are not far from truth, "Vremya novostey" writes. By calculations of experts, population of sturgeons in the Caspian Sea has reduced by 90% since 1970. And the rest studies show that only in 2001 - 2002 a number of caviar fishes reduced by 40% just for activeness of poachers.
Before the collapse the USSR occupied the first place on deliveries of black caviar and sturgeons to the world market. Now Iran is the world leader in this field and advances Russia in almost seven times in sales. Many experts consider that Iran has achieved such successes in account of introduction of state monopoly on production and production of caviar. Moreover, there are not almost artificial reservoirs for industrial sturgeon breeding. Though there are countries, which are engaged in breeding in closed reservoirs. For example France is related to such countries. This country, which received several hundreds of sturgeons in present from USSR in the beginning of 70-s of the past century, produces above 10 tons of caviar per annum to date. And this makes 20% of the official Russian sturgeon production.

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