Oil & Gas News

Huge increase in oil transport
The Caspian Shipping Company (CSC) is expected to increase its oil transportation capacity by 67 percent in 2004, chief of the Company Aydin Basirov has told journalists.
"For the time being, we can transport 12 million tons of oil and oil products per annum. But we will be able to increase the figure up to 20 million tons after we have received new tankers," Mr. Basirov said.
The Krasnoye Sormovo shipyard in Nizhny Novgorod is currently building four tankers for the Caspian Shipping-two tankers with water displacement of 12,000 tons and another two tankers with water displacement of 8,000 tons. The total cost of the contract is 44.5m US dollars.
Mr. Basirov said the first tanker would be ready by September, while the second one by the end of this year and the remaining two by 2004.
"We will purchase more tankers if necessary," Mr. Bashirov noted.
An increase in the volume of oil transportation is expected after Kazakhstan joins the Baku-Tbilisi-Ceyhan project. According to preliminary data, Kazakhstan plans to transport up to 20 million tons of oil per annum by tanker from Aktau port to Baku through the Baku-Tbilisi-Ceyhan main export oil pipeline.
The CSC transported about 7.3 million tons of oil and oil products in 2002, with a total of freight transportation of 11.4 million tons. The freight volume is expected to increase by 10 percent this year.
The CSC operates a total of 69 vessels, with 34 tankers and 35 dry freight ships.

BP-Azerbaijan's activities to be revised
A conference on the state of efficient use of local resources by BP in the projects carried out in Azerbaijan will be held at the Grand Europe Hotel of Baku on June 28.
The gathering, including local and foreign non-governmental organizations (NGOs), will discuss the use of local resources for the Baku-Tbilisi-Ceyhan export pipeline, oil contracts and sub-contracts.
The participants in the conference will visit the Sangacal Terminal after completing the discussions in the first half of the day, President of the National NGO Forum Azay Quiliyev has told AssA-Irada.
According to him, a group of experts of several foreign NGOs conducted monitoring of BTC in Azerbaijan, revealing several irregularities. Accordingly, a monitoring group was established comprising NGOs included in the Forum to monitor the area the pipeline runs through, disproving most shortcomings. "The deficiencies were revealed mainly in paying compensations to land-owners. A report on other irregularities is being prepared to be presented to the government soon. After the conference the report will be sent to international organizations," Mr. Quliyev added.

Oil, gas production 3.6 percent up
This year's oil and gas production has surged by 3.6 percent compared with 2002, totaling 6.454 million tons, according to the State Statistics Committee.
The growth in production primarily occurred on the Azerbaijan International Operating Company (AIOC) which produced 2.747 million tons of crude.
The gas production over the past five months decreased by 1 percent to last year, with 2.132 billion cubic meters of gas, including 789.9 million cubic meters of natural gas extracted.
The oil production increased by 7.3 percent to last year, as 283,800 tons of gasoline (22.1 percent of the plan), 1.038 million tons of heating oil (6.7 percent), 655,400 tons of diesel (3 percent), 278,700 tons of kerosene (8.3 percent), and 19,800 tons of oil bitumen (41.4 percent).

SOCAR to export 220,000 tons of crude through northern route
The State Oil Company of Azerbaijan (SOCAR) is planning to export 220,000 tons of crude in June through the Baku-Novorossiysk oil pipeline. SOCAR's Foreign Economic Relations Department has told AssA-Irada that the 140,000-ton first lot of crude will be loaded into tankers on July 15-16 for French oil major Total. As to remaining 80,000 tons, SOCAR will announce a new tender late in June to identify its purchaser. The second lot of crude is scheduled for loading into tankers on July 15-16.
SOCAR is planning to transport 2.5 million tons of oil through the northern route this year.

Dwelling bloc for Central Azeri project to reach Azerbaijan in July
A dwelling bloc assembled by Emtungo company in Sweden for its further installation in the Central Azeri project is sailing to Azerbaijan, while it is due in Baku early in July, bp-Azerbaijan has told AssA-Irada.
The drilling bloc assembled in France by Eiffel company is reported to reach Baku in the third quarter of this year.
The installation of the compressor and upper modules of water-pumping platform, as well as laying of subsea pipelines under the Azeri project is also scheduled for the third quarter.