I WAIT WITH PLEASURE A NEW MEETING WITH BAKU

Governor of Astrakhan region Alexander Zhilkin during his visit to Azerbaijan replies to asked questions of the International Publishing House "CASPIAN ENERGY"

- Alexander Alexandrovich, what are the economy relations of Astrakhan region among the nearest neighbours on the Caspian? What's your estimation the perspectives of their further expansion?

- Today, Astrakhan region became the Caspian capital of Russia and doomed to good and closer relations with neighbours in the Caspian. Taking into consideration the history and geography, we all, who lives in the largest geopolitics region have always connected with achievements of each other and with the problems gathered round the Caspian Sea. We are being colleagues on the Caspian Sea got enough experience in the solving of exist problems and created the model of economy, social and cultural mutual cooperation of frontier regions of independence countries based on resource potential of the sea - lake.

We had to rebuild of breaking relations with the Caspian countries after the former Soviet Union. This is uneasy process stimulated the operation for searching and production of hydrocarbon, also the development of the North-South transport corridor. Today, Astrakhan region's cooperation in the Caspian with the Republic of Kazakhstan and Islamic Republic of Iran is more actively. Our shipbuilders implemented many orders for oil industry workers of Kazakhstan who developed Kashagan field. Floating drilling vessels "Sunkar" and "Astra" had been modernized in our dockyards. There have also been constructed the units for ice protection. Joint ventures established with participation of Kazakhstan and Iran capital operating not only in the sphere of shipbuilding. At one of Astrakhan ports was built the largest Russian-Kazakhstan grain terminal. Iranian partners mutually with us active develop the Caspian transit, Astrakhan - Enzeli ferry line operates and functioning of commercial companies.

It was pleasant that relations with Azerbaijan made more active within last two years. We appreciate it and do our best for successful development of relations with important for us neighbor in the Caspian region.

- On the eve of the Russian shelf development in the Caspian Sea, which operations are carried out for construction of infrastructure in the region?

- Russian sector of the Caspian Sea is one of the most perspective regions for searching of hydrocarbon fields. Probable reserves can be compared with the resources of Azerbaijani part. Also, we can mention that there had competition among the largest oil companies for development of the Russian part of shelf last years.

"LUKOIL-Nizhnevolzhskneft" to be of interest of the oil company "LUKOIL" in Astrakhan region is going to search of oil and gas fields both in region and in shelf of the Caspian Sea. Industrial hydrocarbon production at Russian fields of the Caspian basin, namely at the field named after Yuriy Korchagin the stated operation will be begun in 2008, and within 15-20 years the level of production will make approximately 10 bcm and 4 mln tons of oil per year.

Astrakhan region being as major base of the Russian offshore oil production in the Caspian Sea is getting ready for creation of required infrastructure. At shipbuilding plants of region are fulfilled the construction of bulk-oil tankers and vessels by utilization of offshore drilling's wastes. There also completed the construction of access railroad Yandiki - Olya port with length more than 50 km, which connects the main Russian port in the Caspian with Astrakhan and the system of Eurasian steel highways.

There is began the building of "LUKOIL-Nizhnevolzhskneft" transport-industrial base complex in the Ilinka settlement. It operates for material and technical serving of technology units in the sea based. Assignment of majority industrial areas is receiving, storage, materials and equipment shipment, repairing organization, processing of technology wastes.

Especially we should note the role of shipbuilding in creation of infrastructure for oilmen. Astrakhan shipbuilders began to work to the Caspian oil a hundred years ago. Their first working experience took place during the implementation of Baku order. Until USSR disintegration approximately 80 percent of shipbuilding potential was directed ton Azerbaijan. Astrakhan "Lotos" and Baku "Shelfproyektstroy" plant were constituent parts of unity offshore industry complex. The leaders of our shipbuilding industry "Krasniye Barrikadi" and "Astrakhanskiy korabel" could save their great experience in making of the best constructions for development of oil fields in offshore shelf, had qualified staff, also built the cooperation with businessmen from the Near East and abroad.

- At Astrakhan shipyards had been constructed half-plunge floating drilling units as "Shelf" which are used in the Caspian Sea thus far. Are there any necessities of construction such stated units in Astrakhan plants? Is there discussed the possibilities of mutual cooperation's renewal between Azerbaijan and Astrakhan shipbuilding plants?

- Yes, certainly. In case of Azerbaijan interesting in construction of technical means for hydrocarbon production in the Caspian Sea, there is possible to be acted the consolidated powers of all plants which join to Astrakhan Shipbuilders Association.

Our plants are ready to modernizing the constructions of upper buildings of the oil platform which done in Astrakhan by order of Azerbaijan oil producer companies. Furthermore, there are discussed the possibilities of renewing of contacts with Astrakhan shipbuilders and in August of 2004 was signed an agreement about strategy partnership between JSC "Krasniye Barrikadi" and "Rosneftegazstroy-Azerbaijan".

I am sure that we should together rely to experience of the Caspian integration of last decade when Astrakhan served as shipbuilding base of oil Azerbaijan. Wise men think that all new - good forgot old.

Soon will be fulfilled a year since signing of "Agreement between Administration of Astrakhan region and the Government of the Republic of Azerbaijan regarding trade-economy, scientific-technical and cultural cooperation". This event occurred during the visit of Azerbaijan delegation headed by the Prime Minister of the Republic of Azerbaijan Abbas Abbasov to Astrakhan. During the visit were discussed the issues about orders to "Krasniye Barrikadi" and "Rosneftegazstroy-Azerbaijan". Within fulfillment of joint projects we arranged to make the assistance to issues solving in State, certifications and other controlling organs. We have also offered for establishment of joint ventures for exchanging by experience and new technologies.

- What's your estimation about the opportunity of trade-economy relations improving, setting of relations between the plants of Astrakhan and Azerbaijan for enlarging of economic cooperation and exchanging by investments projects?

- We hope that our cooperation will not be only in the sphere of oil industry. During the visit of Astrakhan delegation to Baku last year, there were in detail discussed the terms of ferry communications including the passenger between Olya and Baku ports and the appearing of regular flights. We can note that the issue of transport communications is very important for us. We achieved the including of heavy roads' construction, which will connect Astrakhan and Makhachkala to federal program of development. In future this road will connect us with Azerbaijan.

The Caspian Sea resources development are not only done for oil and gas. We are going to cooperate in development of fish industry, namely in reproduction of sturgeon and both in production and processing of sprat.

- The question about transport cooperation. At present, TOC-BP fulfills oil supplies via marine from Astrakhan to Iranian Neka. What do you think about BP plans in making busy of way from Astrakhan to Baku with the aim of further oil export through Baku-Tbilisi-Ceyhan pipeline after 2006?

- Transport steams are developed not in basing to logic or willing of anybody. In spite of the fact that political aspect is important factor, there operates, first of all the economy aspect. If Baku-Tbilisi-Ceyhan oil pipeline is acceptable to exporters then they will get it too. It is clear for us that in this case Astrakhan ports will be as transfer points. The oil by tankers will be transferred through Astrakhan to pipeline. I guess that it is profitable to us. The development of hydrocarbon production will cause of some questions appearing, including the development of pipeline transport. Today, CPC pipeline system has not been fully operated. At present, we have, what we have and we should use it, not break the process.

- The present year announced as Azerbaijan Year in Russia. Which wishes do you have regarding events will be taking place within its frame?

- The first of such event for me will be my visiting to Baku. It was planned in April. Last autumn, Astrakhan delegation headed by the senator Constantine Markelov (now he became as Chairman of Astrakhan region's government) met with the President of the Republic of Azerbaijan Ilham Aliyev. He brought me the invitation on behalf of Dear President to visit Azerbaijan.

I have been in Baku for a long time, in 1986 and we visited our friends. I liked the city, people and I felt myself very comfortable and safety. I remembered sea front. I know that now it became more beautiful. I was conquered by culture of people communicating. I wait with pleasure the visiting of city and meeting with the president Ilham Aliyev. The Caspian Sea is great nature creation. There people's mentality is differ than in Europe. Relations among the first persons have a special meaning. If there is any entrust between us it will provide by example to structural authorities and business to follow in the same direction.