BTC

EARLY IN 2005 TURKEY WILL BE READY TO RECEIVE BTC OIL

Late in January on pipe base VTS SO in Absheron district Umbaki (not far from oil terminal in Sangachal) it was held ceremony of the first consignment of pipes for pipeline BTC construction. President SOCAR Natig Aliyev took part at mentioned ceremony and vice president of BP Azerbaijan on issues of oil export Mikle Taunced. The pipes had been delivered to Baku from Georgian port Poti at Black Sea shoreline of Georgia. The first consignment consisted of 240 pieces 42-inch pipes (by 8 units in each car) had been delivered from Poti on railway carriage by German Company Kuhne & Nagle, setting out as a subcontractor upon expediting services for Azerbaijanian pipeline area. Length of one pipe makes up 11,6m, width-12-19mm. The first pipe had been delivered to Poti in January 14 by ship "Kaledonya", being belonged to Britain Bertling, dealing with cargo transshipments. Tubes are made in Japan Sumitomo Corporation, and their covering carried out in Malaysia. Services on delivery there were presented Azerbaijan State Rail Road. The pipes will be stored at pipe base in Umbaki, and from there they will be delivered alongside the corridor of the pipeline in the beginning of spring, when it is being planned to start refurbishing activities.

CONSTRUCTION OF THE NEW SEMISUBMERSIBLE DRILLING RIG CONTINUES AT BAKU SHIPYARD

Baku, January 31 - Exxon Azerbaijan Operating Company, LLC (Exxon Azerbaijan), an ExxonMobil subsidiary, and Maersk Contractors announced today that assembly of the main components of the Maersk Contractors’ drilling rig DSS-20 is moving forward at the Baku shipyard and construction is expected to be completed in the third quarter of 2003.

TPAO

Turkiye Petrolleri A.O. IN THE CASPIAN REGION

With the break up of the former Soviet Union in early 1990's, along with the world oil companies, TPAO has adjusted to the changing world of economic situation and turned to the Central Asia Turkish Republics, which are well known for their substantial hydrocarbon potentials.

Chairman of the Board and President of TPAO

Kenan Veziroglu

Chairman of the

Board and President of TPAO since March 2002.

TPAO, as an investor company in upstream and midstream projects, has a close watch on these developments with the responsibility and duty of reinforcing the historical and cultural ties between Turkey and Caspian Region countries.

GAS PRESSURE - “ELEPHANTS” CONQUER EUROPEAN MARKET

Turkish market

Last summer Iranian gas delivery to Turkey started, on February 3 of this year Russia -Italy “Blue Stream” was launched, Persian countries “aim” at Turkish market. Iran has already become a first Persian Gulf country delivering gas to European market by pipeline. As far back as 1996, concluding an agreement with Turkey on delivery of natural gas within 22 years, Iran intends to export to this country from 2,3 billion cubic meters up to 30 billion cubic meters. This year according to the signed documents, Russia will deliver 6,5 million cubic meters of gas to Turkey by this pipeline. In 2007, when the gas pipeline is intended to reach full capacity, this indication will rise till 16 billion cubic meters annually. According to “Gasprom”, Turkish side already completes the construction of the electric power station in the Samsun province, which will be working with Russian gas. Furthermore, low demand on natural gas of the Persian Gulf, must not mislead anybody. This region possesses a great export potential and this factor are to be taken into account. In this condition- invasion of “elephants” by pettier producer of natural gas with the lapse of time will be more difficult to find independently the place in this such a “popular” market of “blue fuel”.Particularly Turkish economy suffers crisis, from which he fails to “scramble out” for many years. Therefore, understands that he will fail to overdo with such enormous volume of “blue fuel” within the contracts in force on “purchase and sale” of gas.

TUSIAB'S POINT OF VIEW TO AZERBAIJAN BY ECONOMICAL SIDE

The new independent countries, which were formed after the Soviet Union coming to end, they have opened their doors to the international capital for new investments. In the limitation of our relations with these countries, taking place in Eurasia and sharing the same language, same beliefs, and same culture and in the globalize world, the place of Turkey has increased even more. The Caucasus are taking two third of this geography and Azerbaijan is the country which is the "breath tube" of Middle Asia Turkish Republics. The unity of Azerbaijan with Turkey in every field is unavoidable after that. But the locomotive of this unity is economy.

ANSAD PETROL IS 10 YEARS OLD
LARGEST AZERBAIJANIAN -TURKISH JV KEEPS GROWING OIL PRODUCTION

Oil had been known in Neftchala since the end of XIX century. First oil pit of 10-12 depth meters hand dug by inhabitants dates back to this time. That welcomed the beginning of exploration works and discovery of new oil fields.1926 saw first industrial oil inflow. This effect was rapidly visible, over many years this field gave 6,0 million tones of oil.In 1993 the State Oil Company of Azerbaijan Republic (SOCAR) and Turkey's "Attila Dogan Petrol" Company have initiated "ANтAD Petrol"Joint Venture on the base of former oil-and gas-related "Neft- chalaneft".

BOTAS PETROLEUM PIPELINE CORPORATION
TURKEY'S ROLE AS A MAIN ENERGY SUPPLY CORRIDOR TO EUROPE

In an ever changing and globalizing world, our country has gained a geopolitically strategic position with all the projects it has embraced. Among all of the organizations in the energy sector, BOTAS has always held a special position. BOTAS, which operates existing crude oil and natural gas pipelines, has launched many pipeline projects that will eventually form a pipeline network throughout our Country. BOTAS continues to make a social-economic contribution to our country's welfare, and aims to continue work in this direction with all its effort.

MIDDLE EAST PETROL DOUBLED THE THROUGHPUT CAPACITY OF AZERBAIJAN'S DUBENDI TERMINAL

Middle East Petrol's Dubendi Terminal is located on the Caspian Sea shore of Azerbaijan, approximately 50 kilometers northeast from Baku. With its current transshipment capacity of 10 million tons per year, Dubendi terminal acts as a major hub for transit transportation of crude oil and oil products from Caspian Region to world markets.

REFORMS OF SOCAR
BACK TO THE FUTURE

Talks and different hearings on full or partial refurbishment of State oil company of Azerbaijan were rounded so long time.

In accordance with President of the country PA SOCAR "Oil and gas extraction at the sea" and PA SOCAR "Oil and gas extraction on the land" will be united in the whole structure and being on their base there will be established PA "Azneft". On the base of external economic links management (EELM) and "Azerneftejhizat" ("Azerneftsnabjeniye") it is being established the Marketing and economical transactions management. On the base of PA "Oil trunk pipelines" it is being found "Baku plant of Deepwater platforms". On the base of PA of SOCAR "Shelproyectstroy" it is established "Baku plant of deepwater platforms". On the base of PA "Azerneftyag" - SPP "Azernefteyag", on the base of PA"Azerneftynadjag" - SPP "Azerneftyandjag".

WHEN THE ISSUE WAS MADE UP AZERBAIJAN CAN BECOME LARGEST GAS PRODUCER OF THE CASPIAN

JAOC TO CONFIRM SHORTLY DISCOVERY OF THE LARGEST GAS CONDENSATE FIELD IN AZERBAIJANIAN SECTOR OF THE CASPIAN

* Nexr week the Japanese Absheron Operating Company (JAOC) is going to confirm the discovery of largest gas condensate field in Azerbaijanian sector of the Caspian, CEW got to know from a confidential source in JAOC. Azerbaijanian experts think the said structure cannot give in for its reserve volume to Shah Deniz field, the other large Azerbaijanian field.

"AZTURGAZ"
EXTENDS HER TRANSPORT FACILITIES

Azeri-Turkish Joint Venture "Azturgaz" JV was registered in the roll of the state joint ventures in the Azerbaijan Republic in the Ministry of Finance of the Azerbaijan Republic on 16.11.1995 (registration ‹ 973). Venture founders are State Oil Company on behalf of the Azerbaijan Republic and "Altintas Kimya ve Ticaret" Company on behalf of Turkey.

OUR ACHIEVEMENT ARE OUR CLIENTS COMFORT

An important economic branch was formed in Azerbaijan since midst of 19th century in connection with the development of the oil industry, i.e. the insurance market. The natural insurance sector of the time bore no national features and all insurance companies of the region were only the representatives of foreign insurance companies in Azerbaijan.