Caspian Energy Investor № 34 (267)  31 October 2007

ACCENT

 

KAZAKHSTAN STANDING BY HER INTERESTS CONCERNING KASHAGAN FIELD DEVELOPMENT PROJECT

 

MANY EXPERTS SAY KAZMUNAYGAS’S STAKE INCREASE IN KASHAGAN PROJECT WILL ENABLE TO RAISE STATE INFLUENCE AND RESULT IN STRICT CONTROL OVER FINANCIAL PART OF THE PROJECT

 

 

EU’S PROPOSALS ON ENERGY MARKET ARE NOT ACCEPTABLE – VICTOR KHRISTENKO

 

European Commission’s proposals on EU energy market protection can dispel large investors, said Minister of Industry and Energy of Russia Victor Khristenko during the round table meeting of industrialists and businesspeople of Russia and EU in Lisbon.

 

 

PROVISIONAL COORDINATION AND APPROVAL OF AZERBAIJAN’S 2008 FUEL AND ENERGY BALANCE FIGURES UNDERWAY

 

The Ministry of Industry and Energy of Azerbaijan launched the drawing of 2008 fuel and energy balance. It will be ready by late November or early December this year, governmental officials told Caspian Energy Investor.

 

The main of 2008 balance figures are those for gas including amount of gas Azerbaijan will receive from Shah Deniz field in Azeri sector of the Caspian, amount of associated gas AIOC will deliver to Azerbaijan from Azeri-Chirag-Guneshli offshore block (ACG), as well as the gas produced by entities within the state Oil Company of Azerbaijan (SOCAR).

Just like in pervious years, gas balance was quite actual in terms of Azerbaijani gas export to Georgia. Azerbaijan’s FEC officials repeatedly said that gas exports to Georgia will depend on gas balance in Azerbaijan and free amounts for export.

Azerbaijan has recently suspended the delivery of its own gas to Georgia. But, governmental officials said, Azerbaijan is ready to resume supplies ‘at first request from Georgia.’

At Georgia’s request this country will, as before, receive 1.3 to 1.5M cm of gas per day from Shah Deniz. Azerbaijani gas is delivered to Georgia by Azerigaz JSC at $120/1,000cm, while Georgia purchases Russian gas at $235/1,000cm. Azerbaijani gas price for Georgia is expected to rise next year but already today Azerbaijan supplies almost a half of Georgia’s gas demand.

Furthermore, by the yearend 2007 the rehabilitation operations will be taking place at the pipeline supplying Azerbaijani gas to Georgia. Upon their completion the pipeline throughput will rise to 3M from current 1.5Mcm of gas per day. By the end of next year the extra operation will result in the throughout increase to 8-10M cm per day.

In addition, pumped to Garadagh and Kalmaz subsurface gasholders daily is nearly 1.5M cm of gas received from Shah Deniz. The remainder, some 4M cm, is delivered to gas distribution system of Azerigaz closed JSC. This gas is delivered to Iran, which in turn transfers gas to blockaded Nakhchivan.

This year pumped in subsurface gasholders was 825M cm of gas. Nearly 380M cm remained from the last season. This amount of gas will be used to supply to consumers in fall and winter 2007-2008. Last year (2006-2007) pumped to gasholders was 1.024bcm of gas.

At the same time ВР reduced amounts of associated gas delivery to Azerbaijan; this gas is produced at ACG offshore block. ВР gives Azerbaijan nearly 3.5 – 4Mcm of associated gas VS earlier 7-8Mcm per day. Such reduction is explained with increased gas injection by ВР at the field. It was raised to 18 from 13-14M cm per day. Azerbaijan is talking to BP-operated АIOC in order to identify amounts of transferred associated gas for the next year.

From early this year associated gas produced from Central Azeri, West Azeri and East Azeri platforms has been transferred using 28” offshore gas pipeline to Sangachal Terminal and from there through the national gas network to domestic market. A part of associated gas produced at Chirag platform is still delivered to SOCAR’s compressor station at Oil Rocks using existing 16” offshore gas pipeline. The remaining associated gas from ACG platforms is delivered to compression and injection units to maintain formation pressure.

The provisional coordination and approval of fuel and energy balance for the next year is underway. When ready, the document will be submitted for approval to the government. It is obvious that regardless of refusal from Russian gas import there will be no problem with this fuel in the republic.

 

CIBC

 

ICT DEVELOPMENT PROBLEMS DISCUSSED AT MEETING OF CASPIAN IT & COMMUNICATION CLUB

 

The problems in ICT sector were discussed (October 24) during the closed meeting of the Caspian IT & Communication Club with Caspian Integration Business Club (CIBC).

 

 

EXCLUSIVE

 

«AZERBAIJAN CAN BE CONSIDERED A SEAPOWER» CHIEF OF STATE MARITIME ADMINISTRATION OF AZERBAIJAN GUDRAT GURBANOV

 

«There are vessels in Azerbaijan’s fleet that no littoral state has. Our country is able to solve any problems at sea. Our fleet comprises unmatched passenger ferries, ro-ro type ships, dry cargo vessels, oil tankers, pipe-laying vessels, survey vessels, emergency and rescue vessels, tugs, maintenance barges, dive support vessels, dredges and large crane ships», said Gudrat Gurbanov, Chief, the State Maritime Administration of Azerbaijan, in his exclusive interview with Caspian Energy Investor.

 

 

 

CASPIAN REGION

 

Kazakhstan

 

 

Turkmenistan

 

 

Russia-Kazakhstan

 

 

 

GAS

 

EU CONFIDENT IN RUSSIAN GAS SUPPLIES VIA UKRAINE

 

«The reliability of Russian gas transit via Ukraine is out of question. Who will benefit more: Russia, which acquires the status of reliable supplier, or Ukraine, which will be recognized a reliable transit country?» European experts came to such conclusion during the next working meeting of EU Gas Coordination Group.

 

 

 

 

TRANSPORTATION

 

BTC

 

 

Baku-Novorossiysk

 

 

Baku-Batumi

 

 

 

SECOND 13,000DWT TANKER HANDED OVER TO CUSTOMER AT KRASNOYE SORMOVO

 

 

Krasnoye Sormovo Shipyard signed the handover notification on the second 19619 design tanker, Agdash, built for Palmali Group. The vessel was passed to the customer a month ahead of the contract schedule, Palmali officials told Caspian Energy Investor.

 

 

 

ECONOMY

 

«SOFAZ’S FUHDS WILL REACH $100-200BN IN 2024 REGARDLESS OF OIL PRICES» - SHAHMAR MOVSUMOV

 

«The funds of the State Oil Fund of Azerbaijan have reached $2bn so far and our calculations show that regardless of oil prices this figure will grow up to $100-200bn in 2024», said in Washington during the briefing at AMCHAM Shahmar Movsumov, Executive Director, SOFAZ.

 

 

 

LITHUANIA CONCERNED IN ENERGY COOPERATION WITH AZERBAIJAN

 

On October 23 President of Azerbaijan Ilham Aliyev received the delegation headed by Chairman Permanent Committee for International Affairs Justinas Karosas, Caspian Energy Investor reports.

 

 

 

AZERBAIJAN, KUWAIT UNDERLINE IMPORTANCE OF COOPERATION AND JOINT PORJECTS IN OIL INDUSTRY

 

On October 23 Minister of Industry and Energy of Azerbaijan Natig Aliyev met with the delegation of Kuwait-Azerbaijan Interparliamentary Friendship group with the National Gathering of the State of Kuwait headed by Nasir Jasim al-Sani, people of the Ministry told Caspian Energy Investor.

 

 

REAL OPPORTUNITIES FOR LITHUANIA’S BUSINESSPEOPLE AVAILABLE IN AZERBAIJAN’S ECONOMY - HEYDAR BABAYEV

 

On October 24 Azerbaijan’s Minister of Economic Development Heydar Babayev met with the delegation of Lithuania’s Seym headed by Yustonas Karosas, Chairman of Lithuanian Seym’s Standing Committee for Foreign Affairs to discuss Azerbaijani-Lithuania trade and economic relations, their outlooks and expansion of contracts between businessmen of the two countries.

 

 

NEW ENTERPRISES ESTABLISHED IN AZERBAIJANI REGIONS

 

On October 24 President of Azerbaijan Ilham Aliyev paid a visit to the Yevlah region within the framework of the State Programme for Social and Economic Development of Regions. Through the visit, President took part in the ceremonies dedicated to opening of some industrial and social facilities, the presidential press service told Caspian Energy Investor.

 

 

ENERGY PAYMENTS COLLECTION GROWING IN REGIONS

 

Since the beginning of the year Regional Energy Supply LLC (RES) has saved major amount of electrical energy as a result of measures aimed at complete collection of payments for consumed energy and installation of metres for all consumers.

 

 

 

MINISTRY OF ECONOMIC DEVELOPMENT ANNOUNCES RESEARCH WORKS CONTEST WITHIN THE FRAMEWORK OF AZERBAIJAN’S ACCESSION TO WTO

 

Azerbaijan’s Ministry of Economic Development has announced a contest to the theme ‘Azerbaijan and the World Trade Organization (WTO)’. The contest targets to attract young researchers and promote research works within the framework of Azerbaijan’s accessing to the WTO, the ministry told Caspian Energy Investor.

 

 

MCIT EXPANDING WIRELESS CDMA TECHNOLOGY SERVICE

 

Production Associations of Azerbaijan’s Ministry of Communication & Information Technologies (MCIT) are expanding coverage of the CDMA network, one of the most high-speed wireless technologies worldwide, by transforming talks into digital information and transmit it as a radio signal through the network.

 

 

AZERBAIJANI-ESTONIAN BUSINESS FORUM HELD IN BAKU

 

Azerbaijani-Estonian Business Forum took place on October 29 at Excelsior Hotel.

 

SOCAR

 

Drilling

 

 

Construction

 

 

Standardization

 

 

CONSORTIA

 

Yalama

 

 

 

WORLD MARKET

 

IRAQ THREATENS TURKEY WITH AN OIL BLOCKADE

 

Iraq will stop delivering crude to port of Ceyhan using northern pipeline in case Turkey introduces economic blockade against northern regions of the country, Speaker of Iraqi Parliament Mahmoud al-Mashhadani said in Damascus.