Oil & Gas News

Partners' credits to be used in BTC construction
"Azerbaijan will conduct construction of its section of the Baku-Tbilisi-Ceyhan main export oil pipeline at own expenses, as we have sufficient funds for the time being. To avoid interruption in the construction work, credits will be borrowed from bp and other partner companies," President of the State Oil Company of the Azerbaijan Republic, SOCAR, Natiq Aliyev has told AssA-Irada.
According to him, as the European Bank for Reconstruction and Development (EBRD) credit is not expected before November, it was decided to borrow 180-200m US dollar worth of loan from the partner companies without waiting for the decision of the EBRD Board of Directors.
Noting ongoing talks with the partners in this respect, Mr. Aliyev said as soon as EBRD credit tranche opens, the credits will be repaid as interest rates are currently under consideration. "I hope we will come to an agreement with bp and other partner companies on low rates," he underlined.
Though the EBRD has given initial agreement on approval of credits for construction of the Azerbaijani section of the pipeline, it asked for three  months more for the ecological review of the project.
Some observers, meanwhile, explain hesitations by EBRD with upcoming presidential elections in Azerbaijan, as the bank's Board of Directors will make a positive decision on Azerbaijan right a month after the presidential elections scheduled for October 15.

JAOC to reduce work at Azerbaijani blocks
The consortium Japan Azerbaijan Operating Company (JAOC), the operator of the Atasgah, Yanan Tava and Mugan Daniz block of structures in Azerbaijan, plans to reduce work at the blocks from July 1, company President Norito Sawara has told journalists.
The decision was reached after drilling of a second exploration well at the block failed to indicate commercial hydrocarbon reserves.
"We are not talking about totally winding up the project, as the exploration period set down in the contract has not expired yet, we are only talking about cutting back on the volume of work," Mr. Sawara said.
He underscored that a more definite decision on the fate of the project would be reached in October, when the exploration period ends.
A contract for the exploration and development of the Ateshgyakh, Yanan Tava and Mugan Deniz structures was signed in December 1998 by the State Oil Company of the Azerbaijani Republic (SOCAR - 50%), Japan's Itochu Oil (7.5%), Japex (22.5%), Teikoku (7.5%) and Inpex (12.5%). JAOC was set up in May 1999.
Planned investment in this project is $2.3 million. Possible hydrocarbon reserves amount to 80 million tonnes.

Oil export via northern route on schedule
The State Oil Company of the Azerbaijan Republic, SOCAR, has transported 996,000 tons of crude via the northern Baku-Novorossiysk oil pipeline over the past five months, against the target of 1,105,000 tons, Foreign Economic Relations Department of SOCAR has told AssA-Irada.
Following the scheduled export of 260,000 tons of  crude via the northern route in  June, the deficiency formed in January-May will be removed.     
Hence oil export via the Baku-Novorossiysk will be implemented on schedule, the Department reported.
SOCAR is planning to export 1.2 million tons of oil through the Baku-Novorossiysk route in the second half of 2003, as 220,000 tons of oil per month will be exported in July-November, while 140,000 tons in December. The volume of the oil transportation is expected to reduce in December, as the weather in Novorossiysk is generally bad at that time and it is usually impossible to ship large volumes of oil, SOCAR reported.
The company plans to export a total of 2.5 million tons of oil through the Baku-Novorossiysk pipeline in 2003 as in 2002 and 2001.

Compensation for BTC land still unresolved
Despite the construction of the Georgian section of the Baku-Tbilisi-Ceyhan main export pipeline, there still are problems with payment of compensations for lands in use in the territories densely populated with Azerbaijanis, as well as their active involvement in the construction of the pipeline.
Expressing his attitude towards the issue, President of the State Oil Company of the Azerbaijan Republic, SOCAR, Natiq Aliyev, has told AssA-Irada attraction of Azerbaijanis to constriction activities in the Georgian section of the BTC would be expedient. "Labor force of Azerbaijanis should be equally used in the activities not requiring special qualifications," Mr. Aliyev said. 
As special welding skills are required for the BTC, Mr. Aliyev said 120 Azerbaijanis, who attended special training in Dubai, getting  appropriate certificates, are currently involved in construction of the Azerbaijani section of the pipeline.
"Notwithstanding, it would not be right to discriminate people for their nationalities," he stressed.

AIOC exports 2,618,000 tons of oil via Baku-Supsa
A total of 2,618,000 tons of oil has been exported by the AIOC via the western oil pipeline Baku-Supsa in January-May, bp-Azerbaijan has told Azernews.
As of May 1, the Azerbaijan International Operating Company (AIOC) has exported 608,000 tons of oil via the Baku-Supsa pipeline, against 574,000 tons as of April 1.
The Company's production from the Ciraq platform made up 567,00 tons in May, while total production constituted 2,746,000 tons as of June 1.
Daily production from the Ciraq platform, developed by AIOC shareholders, constitutes 135,000 barrels.