Baku News

MOSCOW, February 26 (RIA Novosti) - Structures close to RussNeft ex-head Mikhail Gutseriyev, currently wanted in Russia, completed a deal to buy two oil operators in Azerbaijan from Canada's Nations Energy, a Russian daily said on Tuesday. Vremya Novostei said Gutseriyev's allies began preparing the deal back last spring. As a result, Britain's Global Energy controlled by Gutseriyev paid $340 million for an 85% stake in the Karasu Operating Company and 80% in the Kura Valley Operating Company. Sources close to Gutseriyev say quite possibly these oil assets will not be the last acquisitions by Global Energy in Azerbaijan, suggesting that Gutseriyev and his allies are setting up a new oil company, this time in the South Caucasus republic. RussNeft former CEO Gutseriyev resigned July 30, 2007 amid accusations of tax evasion and running an illegal business. The Interior Ministry issued an arrest warrant last year and applied to Interpol for him to be put on the international wanted list. He is believed to be living abroad according to the ministry's investigators. RussNeft, one of Russia's top ten crude producers with recoverable reserves of more than 630 million metric tons (4.6 billion barrels), faces substantial back-tax claims.

11 February 2008 - Today.Az - The price of Azerbaijani gas, supplied to Georgia, may rise up to $180-200 per 1,000 cubic meters. The due announcement was made by Azerbaijan's Minister of Industry and Energy Natik Aliyev, commenting on the talks carried out with Georgia on gas supplies from Azerbaijan. It should be reminded that gas supplies from Azerbaijan to Georgia were halted in early January. "The price of gas should be profitable for both sides. At the same time, we can not leave Georgia in hard conditions", the Minister noted. N.Aliyev announced that the talks are carried out on the price of $180-200 per 1,000 cubic meters. It should be reminded that the figure has previously been $120. At the same time, the Minister noted that the volumes of supplies will depends on the balance of the fuel of energy complex. "Georgia requests 1-1.5 billion cubic meters of gas per year, which does not mean the volume will be the same. We have supplied maximum 500,000,000 cubic meters of gas to Georgia", he noted. N.Aliyev added that SOCAR is currently selling its gas for $120 per 1,000. "This price must be reviewed and brought to the world level", he concluded.

09 February 2008 - Day.Az – The Baku-Tbilisi-Ceyhan pipeline transported 2,877,793 tons of Azeri oil in January, 2008. The due information has been provided by Day.Az referring to the press service for the State Oil Company of Azerbaijan. It should be noted that a total of 40,267,683 tons of oil were transported by the said route as of February 1 of 2008.

06 February 2008 - ARA - The State Oil Company of Azerbaijan (SOCAR) has undertaken operating of the Azeri section of Baku-Novorossiysk Oil Pipeline since February 2. Prior to this, the Baku-Novorossiysk pipeline has been operated by Azerbaijan International Operating Company (AIOC). SOCAR exported 1.2 million tons of crude oil via the pipeline in 2007. 256 tons of oil was pumped in January, 2008. Azerbaijan has been exporting oil through Baku-Novorossiysk route since 1997.

2008-02-04 – Skyscrapernews – Baku in Azerbaijan is set to become the home of a shiny new skyscraper that will become the new head office for the State Oil Company of Azerbaijan or SOCAR for short. The stunning design comes from the drawing boards of Korean based architects Heerim Architects and Planners Co Ltd who have also recently opened new offices in Baku. Construction will be undertaken by Local builders under the supervision of Heerim and will be located on Heydar Aliyev Avenue, part of Baku's business district. The two towered project rises from a elongated, canopy like podium made of glass and aluminium and snake their way skywards. Curving into each other the seemingly shorter tower almost looks like its resting its head on the chest of the taller tower, the taller towers peak slightly bending over it in a confident, reassuring and comforting manner. The facades are glass which have a mesh-like pattern to them and allows people below to see what's going on in each different floor of the tower and gives workers inside exceptional views. The towers will have 32 floors, 2 basement floors and have a maximum height of 173 metres. Covering 12000 square metres it will mainly house office space but will also have conference facilities, a guest house with 20 rooms to accommodate out of town business people, sports facilities and retail spaces and presumably food outlets to keep the expected 2000 workers in the tower firing on all cylinders. Construction is expected to begin in the first quarter of 2008

04 February 2008 - APA - Azerbaijan is predicted to earn $400 billion of oil and gas revenues within 16 years, said Azerbaijan’s Industry and Energy Minister Natig Aliyev said in an interview with a group of reporters from the EU countries. He said the current uptrend in the world oil market increased expectations while country’s oil and gas revenues had previously been forecasted to be $200 billion until 2024. According to him, Azerbaijan is expected to produce 20 billion cubic meters of natural gas from Shah Deniz in 2010-2012 and will occupy an important place in energy security of Europe. He said Azerbaijan has demonstrated political will for implementation of Nabucco and Trans-Caspian Projects. The assets of State Oil Fund of Azerbaijan (SOFAZ) are predicted to grow to $7 billion this year if oil prices remain high.

30 January 2008 - Day.Az - US Goldman Sachs International is ready to render consulting services to Azerbaijani enterprises in banking, telecommunication, industrial and energy sectors. The due announcement was made by Mustafa Bagryachik, director for company's management, during the meeting with Azerbaijan's Minister of Economic Development, Day.Az reports with reference to the Ministry. He said Goldman Sachs International is interested in participation in projects in Azerbaijan. It should be noted that the company, engaged in the sphere of banking, investments, securities and assets management, has representations in Turkey and Russia.

28 January 2008 - APA - Azerbaijan will build a state-of-the-art oil refinery in Ukraine, the country’s president Viktor Yushchenko told on 1+1 TV channel. He spoke of his meeting with his Azeri counterpart Ilham Aliyev at the World Economic Forum in Davos on January 24. According to him, the work is under way to achieve the averse mode of the Odessa-Brody route. He added a public tender has been announced for feasibility study for extension of the Odessa-Brody pipeline to Plotsk. Yushchenko noted that delivery of Azerbaijan’s premium-quality oil to Parlup (Czech republic) via the Friendship Pipeline is being explored. Last week, the Ukrainian Minister of Fuel and Energy met with Azerbaijani ambassador to Ukraine. Azerbaijani ambassador said his country is ready to pump 5 million tons of oil per annum into Odessa-Brody pipeline in the averse mode. The issue will be discussed at the Energy Security Summit in Kiev in May. The Azerbaijani ambassador Talat Aliyev said the State Oil Company of Azerbaijan (SOCAR) takes interest in refining and selling oil in Ukraine. He also suggested setting up a joint venture for transportation of crude oil to Ukraine.

26 January 2008 - Day.Az - Azerbaijan's share in the project of a large-scale development of the Azeri-Chirag-GUneshli fields has risen from 25% up to 50% this year. The due information has been provided by SOFAR chief executive Shahmar Movsumov during a press conference. He said the transfer to a new stage, which implies the transfer of 80% of revenues from the Azeri-Chirag-Gunesli oil production to Azerbaijan, is expected this year. Movsumov noted that the title to the assets of the Azerbaijan International Operating Company must pass to the state when the day of the so-called "zero balance" comes in line with Production Sharing Agreement on the unit development. "We expect it to occur in mid 2008. At the same time, the Azerbaijan International Operating Company will continue to use this equipment until the termination of the contract", Movsumov concluded.

25 January 2008 - Day.Az - "By some pessimistic forecasts, the reserves of the Fund will rise by $2,000,000,000, while by our estimates, this figure may total $5,000,000,000, thus reaching $7,000,000,000". The due information has been provided by the head of the State Oil Fund of Azerbaijan Shahmar Movsumov. Sh.Movsumov links it with the overall economic growth in the country. "25% economic growth and reduction of poverty rate from 49% down to 16% are significant indicators. The last year of 2007 was successful for the Oil fund", he noted. The head of the Fund announced that of January 1 of 2007 the assets of the Fund make up AZN 2,092,400,000 ($2,475,400,000) which is by $1,021,000,000 higher than than of the previous year. "For the first time the reserves of the Fund exceeded $2,000,000,000. For the first time the dividends from the Shah-Deniz project and the Baku-Tbilisi-Ceyhan pipeline were received", he noted. The fund's assets made up AZN 1,872,300,000 last year and expenses AZN 1,061,200,000. The revenues of the Fund were executed by 120.3% and expenses by 95.1%. The revenues of the fund from the implementation of oil contracts made by AZN 1,800,000,000, including AZN 1,675,000,000 from the sale of profit oil, AZN 5,600,000 from acre payments, AZN 58,100,000 from bonus receipts, AZN 1,300,000 from assets, received from foreign investments, AZN 60,000,000 from the sale of refined contract oil, produced inside the country. The revenues from regulation of assets of the Oil fund made up AZN 72,300,000 last year. Out-budget payments to the Oil Fund of Azerbaijan, connected with the re-estimation of assets, made up AZN 13,900,000. A total of AZN 154,100,000 were used for assistance to refugees and IDP, AZN 76,900,000 and AZN 132,900,000 for the reconstruction of the Samur-Absheron water system and laying a water pipeline from the Oguz-Gabala zone to Baku, AZN 585,000,000 were transferred to the budget of the country, AZN 20,700,000 for implementation of the Baku-Tbilisi-Kars new railroad project in the framework of execution of the budget of the oil fund. A total of AZN 87,600,000 was transferred to SOCAR to finance its share in the development of deepwater Azeri, Chyrag and Guneshli. Expenses connected with the regulation of the National Fund of Azerbaijan made up AZN 4,000,000. The Investment portfolio of the fund made up $2,436,81, according to Movsumov. The receipts from the Shah Deniz project will make up $240,000,000 and from Baku-Tbilisi-Ceyhan-$140,000,000 in 2008.

24 January 2008 - Day.Az - The expanded company Muradkhanly, developing Muradkhanly, Jafarly, Tersdeller, Zardabi and Naftalan fields, transferred 30,300 tons of oil to the state in 2007. According to the press service for SOCAR, this is by 4,300 tons higher, as compared to 2007. The company has commissioned well No 31 with a daily withdrawal production of 40 tons of oil at Jafarli field this year. It is currently drilling the second well at a depth of 3970 meters to be launched in March. Construction of a drilling site for the second well is currently under way. Well No 106 at a project depth of 2800 meters is being drilled at the Muradkhanly field. Two more wells are planned to drill next year. 13 wells of a total daily withdrawal production of 3-4 tone are currently operated at Naftalan field, producing medicinal oil. It should be noted that Muradkhanly company is headquartered in Shamkir.