DEAR READERS OF THE CASPIAN ENERGY

Currently Georgia and Azerbaijan are establishing a "geo-political" bridge as a short cut from Central Asia and Caucasus to Europe. We have started direct realization of the Baku-Tbilisi-Ceyhan (BTC) pipeline project. By the end of 2003 a greater part of the work is to be accomplished and by the end of the next year the pipeline is to be ready for operation. Besides the oil recovered in Azerbaijan, I am sure, the BTC pipeline is to transport the oil produced in Kazakhstan. Such an agreement was reached as far back as in 1999 in Istanbul signing the "the project of the century". Discovery of enormous oil reserves in Kashagan field proves that the Caspian region possesses huge reserves of oil and gas. A number of pipelines will be required for its transportation to the world markets, which was repeatedly stated by President Nursultan Nazarbayev of Kazakhstan. This network of oil and gas lines will lead to establishment of common multi-functional infrastructure contributing to cooperation among the countries of the Caucasus and the Central Asia. The thing is, the energy projects are just a part of the manifestation of the significance the EurAsian Bridge acquires in 21st century.

What we have achieved to this day is a sound and firm platform on which to build further

Giorgi Chanturia Commissioner Extraordinary and Plenipotentiary of the President of Georgia President of the Georgian International Oil Corporation.

At this juncture in the mankind's history new priorities and values, common to all mankind, are increasingly coming to the fore. This, in many cases, presupposes adjustment of political and economic interests of a number of countries in a way that places considerable emphasis on the need for regional cooperation. Individual countries are increasingly looking at their future development through the prism of global perspective.

My country attaches a tremendous importance to for the Baku-Tbilisi-Ceyhan (BTC) Main Export Oil Pipeline and the Baku-Tbilisi-Erzurum South-Caucasus Gas Pipeline (SCP) projects. We feel certain that their realization will bring countries of our region into the limelight of the West's geopolitical and geo-strategic interests, together with giving them a much firmer footing in the international community. One can safely say therefore that these projects are, in effect, the most important milestone in the history of the statehood of Azerbaijan, Turkey and Georgia over the recent decades.

GEORGIA IS A RELIABLE STRATEGIC PARTNER OF AZERBAIJAN, ZURAB GUMBERIDZE, AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY OF GEORGIA TO AZERBAIJAN IS CONFIDENT

Caspian Energy: Mr. Ambassador how would you assess the current level of bilateral relations between Georgia and Azerbaijan and role of economic component in it?

Zurab Gumberidze: The thing is, we regard the bilateral relations in the sphere of both policy and economy. I think., as to our political relationship we always state the highest level of our co-operation and demonstrate absolute unity of our views on basic directions of developing of our states concerning the integration with the western structures, which currently determine the values of democracy and independent development of the states in this world. As strategic partners we attach great importance to our bilateral relations and naturally, economy is a significant component of these relations. Our states have managed to create and realise projects of world significance within a short period of time, such as the TRACECA, transportation of "early" oil along the Baku-Supsa pipeline, and the Baku-Tbilisi-Ceyhan pipeline and the Baku-Tbilisi-Erzurum gas-line are being successfully realised. Each of these projects, as it was already noted, are projects of world scale for their value and size and we can note proudly that their realisation within the shortest period is a great achievement both for our states and the countries and companies involved in them. The fact that the drawing of legal and contract base the projects of these level in some other countries takes considerably more time can serve as an example. Therefore, we can state in our case absolute unity of goals and objectives, which enabled us to speed up the realisation of the projects.

Guaranteeing the quality of Caspian Oil from the heart of the ground through to the world market

Dr. Nina Parkinson Regional Manager Intertek Caleb Brett Azerbaijan/ Georgia/ Turkmenistan

Intertek is one of the world's largest companies engaged in the testing of hydrocarbons, manufactured goods, commodities, agricultural products, minerals and water. Being one of the world leading independent testing companies with a network spanning 155 laboratories and 405 offices in over 90 countries, Intertek is known for its uncompromising high standards of accuracy, integrity and confidentiality.

Our clients are from the private and public sector including oil and gas companies, traders as well as governmental organizations.

Caleb Brett is one of the divisions of Intertek.

Batumi Oil Terminal

Alegratrans is the marketing and logistics arm of Batumi Oil Terminal, an activity that has been in operation for 120 years. The Terminal is located near the seaport of Batumi, on the Georgian Black Sea coast, in the autonomous Republic of Ajaria.

In 1883 a loan from Baron Alphonse Rothschild helped two prominent Russian oil producers to complete the project of their life building a railway road from Baku to the Black Sea port of Batumi. The new Baku - Batumi railway road almost overnight turned Batumi into one of the world's most important oil ports.

PUTTING POTI IN THE WORLD OIL MAP

Channel Energy (Poti) Ltd - Georgia

Poti Sea Port Oil Terminal Project is jointly undertaken by Channel Energy Ltd. - an international company with extensive experience in the storage and handling of oil products for over 20 years and by Poti Sea Port - a state enterprise that has significant experience on the management of port operations in Georgia and the Region. The project is financed partly by equity and partly jointly by European Bank of Reconstruction and Development (EBRD) and Black Sea Trade and Development Bank, both of which play an active role in the development of the Region. Caspian Energy interviewed Mr. Mehmet Habbab, the Chairman of Channel Energy Ltd.

CE: Can you please give some history of your Company at the Port of Poti:

MH: The Company already has been operating in the region since 2000 with its floating storage capability, the M/T Potistar and has been dealing with the well known oil majors and multinational trading companies - the largest ones in the region. The 1st Phase was completed and became operational in September 2002 and the second phase will be completed by early second half of 2003.

Deugro / DGTL in THE Caspian Region

Deugro/ DGTL in Caspian Region deugro Caspian, a part of the woldwide International Shipping & Freight Forwarding network of deugro/ DGTL Paris, has been established in 1998, following the opening up of offices in Turkmenistan, as early as 1996, making it a true pioneer in this region.

From it's initial presence in Ashgabat, Turkmenistan, the company has spread to have fully operational offices in Balkanabat, Turkmenbashi, Hazar, Aktobe, Aktau, Almaty and Baku.

STAGE OF HONOUR

Azerbaijan Starts the realization of Shah Deniz Project

On February 27 the Shah Deniz gas condensate field development project partners took a decision to start the Stage-1 of the construction with the participation of Macid Karimov, minister for fuel and energy of Azerbaijan .

The production sharing agreement for the development of the Shah Deniz field was signed in Baku as far back as in June 4, 1996. Ratified by the Milli Maclis it gained force on October 17 that same year. The Prospecting and Appraisal wells drilled at Shah Deniz within 1997-2001 confirmed that it is a gas condensate field of world class.

THE FURTHER TO THE FOREST THE MORE WOOD
BAKU-TBILISI-CEYHAN'S IMPORTANCE KEEPS GROWING

The ecological problems of great projects often acquire in majority cases a special sharpness either just before their realization or already in their realization. The international and local organizations of various forms, modifications and generation make efforts "to put a spoke into the wheels" of already "leaving train" motivating and often speculating the ecological factor. Everybody knows that the Baku-Tbilisi-Ceyhan (BTC) project is one of the most geo-politically hard project to be executed and for the number of over-come obstacles (if to count them) could enter the notorious "Guinnes' book" of records. Directly proportionally the said pipeline is necessary at least for two countries involved in it, Azerbaijan and Turkey, for the development of their economies under the strategic support of the USA. BTC is necessary for the developing the economy of Turkey as well, from the point of view, that the Bosphorous and Dardanelles Straits passing through her densely populated area are literally "swarm" with oil tankers and the problem threatens to swell even more in future, and in this line the Azerbaijanian pipeline is perceived as an ecological rescue for Turkish straits.

The "ecological war" waged in the territory of Georgia by some forces related to alleged peril of the Borzhomi valley through which the pipeline is to be laid has become one of the above mentioned obstacles. And as soon as the British bp undertook unprecedented safety measures on the pipeline section, official Georgia consented with correctness of evidences in favor of the pipeline construction on the previously approved route, and President Eduard Shevardnadze of Georgia assured the public that if the ecological peril had been real, any concession would be ruled out in the choice of the government and the community, but still the non-governmental organizations fail to get quiet.

OUR ACHIEVEMENTS
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.

For instance we can refer to the British Lloyd. Company (mainly insurance the sea vessels), the Russian Lloyd and the German Line Levant Society (insuring both vessels and cargo). According to 1912 data the number of insurance companies functioning in Azerbaijan had reached 30. Line Levant Society (insurance both vessels and cargo). According to 1912 data the number of insurance companies functioning in Azerbaijan had reached 30.