Caspian Energy Investor ¹ 24 (213)     30 June 2006


ACCENT


  • PRESIDENT OF AZERBAIJAN ILHAM ALIYEV SETS THE TARGET BEFORE SOCAR TO RAMP UP GAS PRODUCTION


    MEETING DEDICATED TO ISSUES RELATED TO GAS SUPPLY FOR THE POPULATION WITHIN THE FORTHCOMING WINTER SEASON, HEATING, ELECTRICAL ENERGY AND SITUATION IN THE ENERGY SECTOR HELD UNDER THE CHAIRMANSHIP OF PRESIDENT OF AZERBAIJAN ILHAM ALIYEV

    On June 24 President of Azerbaijan Ilham Aliyev held the session dedicated to matters regarding natural gas supply for the population during the forthcoming winter season, heating, electrical energy and the situation in the energy sector.


  • EURASIAN GAS VECTOR: WHO IS STRONGER


    AGREEMENT CONCERNING NABUCCO PROJECT SIGNED

    Not only exporters of “blue fuel” but also gas distribution concerns participate in struggle for the European gas market. During the meeting of Energy Ministers of the EU countries held on June 26 in Vienna the participants signed the agreement concerning the NABUCCO project providing transportation of Azerbaijani and Iranian natural gas via Turkey to Europe. At the same time Russian gas monopolist Gazprom reached understanding with MOL (the partner within the NABUCCO project) about projecting of the South European Gas Pipeline and viewed possible directions of cooperation with Iranian oil and gas companies. In this competitive struggle Caspian producers stand upon their positions, Italy and Greece offer to carry on talks about deliveries of Azerbaijani gas from Shah Deniz field in 2010-12. Kazakhstan Êàçàõñòàí studies possible export deliveries adhering to the “diversification” principle.

    The struggle for supply of energy carriers at the territory of the post-soviet space got strengthened against this background. The Russian monopolist establishes new “gas” relations with Ukraine, Moldova and Belarus. Turkmenia presents the ultimatum and also raises rates on “blue fuel.” If previously all these processes were taking place closer to severe winter, today countries of the Eurasian continent try to unleash a great play in their favour in advance.


    • EXCLUSIVE


  • “PROCUREMENT OF PRIVATE CAPITAL ON CONSTRUCTION OF LONG-DISTANCE PIPELINES IN RUSSIA IS TO A CERTAIN EXTENT POSSIBLE,” VICTOR ORLOV SAID


    “The mechanism currently working in Russia enables to attract investments, but inflexibility of the tax regime, unsteady position related to protection of purchased property worries potential and even real investors. Therefore, even Russian consumers of investments to a greater extent keep to a wait-and-see attitude. Investors are afraid of making long-term investments for 15-20 years and mainly invest funds in the current production,” Chairman the Committee of the Federation Council on Natural Resources and Environmental Protection of the RF Federal Assembly Victor Orlov said in the exclusive interview to Caspian Energy Investor.


  • STEINAR GIL: “I CONSIDER OUR PRESENCE IN AZERBAIJAN INSIGNIFICANT”


    “I think both objective and subjective reasons explain the law level of trade relations between our countries. These are issues regarding standardization and quality. Also, it is necessary to lay emphasis on quite high prices on Norwegian production and large transportation expenses. I would like the trade relations between our countries to be on a more appreciable level. We are interested to make investments in various sectors of the Azerbaijan economy besides the oil sector,” the Ambassador Extraordinary and Plenipotentiary of Norway to Azerbaijan Steinar Gil said in the exclusive interview to Caspian Energy Investor.


    • CASPIAN REGION


  • Caspian Sea


  • MILITARY MANOEUVRES HELD IN THE CASPIAN SEA
    EXACT DATE OF THE SECOND CASPIAN SUMMIT TO BE HELD IN TEHERAN STILL UNKNOWN

    Large-scale military maneuvers have been held in the third decade of June in the Azerbaijan sector of the Caspian Sea. Though, the exact date of the second summit of heads of Caspian countries to be held in Teheran has not been set year. Caspian states have various positions regarding construction of Trans-Caspian pipelines.

  • Kazakhstan


  • HIGH POWER ECONOMY OF ASTANA AND BRUSSELS


    The seminar “Strategic partnership between the European Union and the Republic of Kazakhstan in the energy sector” organized by the Embassy of Kazakhstan to Belgium jointly with the initiative group of the European Parliament was held (June 20) in the citadel of the European Union - in the building of the European Parliament. Official announcement about completion of construction of the first well at the Kurmangazy structure has been made against this background.

  • Turkmenistan


  • Iran


  • Russia



    • MEP


  • BTC CAPACITY EXPANDED


    SECURITY OF THE BAKU-TBILISI-CEYHAN PIPELINE IS GUARANTEED

    The Baku-Tbilisi-Ceyhan oil pipeline is going to stay from June 21 to 30. The BTC pipeline’s operation was ceased to implement adjustment work, BP Azerbaijan, the project’s operator told Caspian Energy Investor. Upon completion of these works the oil transportation capacity of the pipeline will grow 1.5 times. At the same time the matter regarding security of the BTC pipeline has been discussed in Baku.


    • TRANSPORTATION


  • Baku-Novorossiysk



    • ECONOMY


  • ECONOMIC GROWTH ENABLES AZERBAIJAN TO PAY OFF FOREIGN DEBT AHEAD OF TIME


    OIL AND OIL PRODUCTS COMPRISE 77% FROM TOTAL EXPORT VOLUME FROM AZERBAIJAN

    Three-fold economic growth is forecasted in Azerbaijan before 2010. If in early 2006 the amount of funds accumulated in the State Oil Fund of Azerbaijan comprised $1.4 billion, by the end of this year the Funs is going to accumulate $2 billion more and $4 billion in 2007. The state faces the difficult task to rationally use this money, the Minister of Industry & Energy, Natig Aliyev stated, Caspian Energy Investor reports.

    It is impossible to pay all funds to the population because inflation will just “devour” these payments. The Government meditates upon various mechanisms. Argentina, Brazil and Russia paid off multibillion debts to the International Monetary Fund as one of sterilization measures. For instance, in early 2005 Russia paid back the debt to IMF to the sum of around $3.33 billion ahead of time. Despite oil dollars that expected to flow into the country Azerbaijan does not hurry to use this mechanism.


  • AZPROMO GUARDIAN COUNCIL HOLDS A SESSION
    During the 6th session held on June 28 the Guardian Council of AZPROMO presided over by the Minister of Economic Development, Heydar Babayev took a decision to admit new members

    • SOCAR


  • Drilling


  • Reconstruction



    • CONSORTIA


  • ACG



    • COMPANIES



    WORLD MARKET


  • OIL PRICES CAN EXCEED $100
    OPEC FORECASTS INCREASE IN OIL DEMAND IN THE SECOND HALF OF 2006

    OPEC forecasts increase in demand on oil to be produced by the members of this organization in the second half of 2006 despite record high prices and stated that influence of high interest rates on demand would not be felt up to 2007. Ex-Chancellor of Germany Gerhard Shreder thinks attempts to solve “the Iranian problem” by means of oil and gas can result in rise in oil prices up to $100 per barrel.