SOCIAL ASPECTS OF THE ACTIVITY OF AZGERNEFT JV

AzGerNeft JV was founded on the basis of the agreement concluded Between SOCAR and the German Gruenewald International Ltd. on the base of the 7th field of BalaxaniNeft OGRM (Oil and Gas Recovering Management).

The AzgerNeft JV is engaged in recovering oil and gas in Ramani area of the Balaxani-Sabunci-Ramani field.

The founders of AzGerNeft JV are Gruenewald International Ltd. (Federative Republic of Germany) and State Oil Company of Azerbaijan Republic (SOCAR).

The AzGerNeft JV started its work on February 1, 1995.

In 2002 the AzGerneft JV recovered 50,838 tons of oil (out of which 4,4000 tons were state order) and 1,460, 000 c/m of gas. Delivery of oil to the state made 50,338 tons. In 2002 the JV introduced 11 well into operation from idling fund. The annual profit made 7,334, 912,000 manats

AzGerNeft JV is successful in her activities in 2003. For 6 months of current year 27,541 tons of oil has been recovered (out of them 19,300 tons was State Order and 8,241 tons over state order) and 707,000 c /m of gas. Delivery of oil made 27,668 tons. One well was introduced after drilling and 12 wells from the idling fund.

The 6 month profit made 5,899,690,000 manats. In 2003 the JV started the kick-in of the second shaft of the Well N 3,639 and in future the two more wells are to be kicked off.

Since 1995 the AzGerneft JV contributes actively in refurbishment of the Ramani settlement and participates in the community life of the Sabunci region. During its activities the AzGerNeft JV has realized a new line of fresh water to Ramani settlement, installed a 6 KWt capacity distributing system for children's sanatorium located in the settlement. Besides, the high school acting hall is being repaired at present. As well as the settlement square and the road is being repaired.

The AzGerNeft JV is taking an active part in refurbishment of the Bakixanov settlement.

At the moment a living block of 56 flats is to be built on the outcome of 2003 activities.