Caspian Energy Investor № 35 (268)     07 November 2006

ACCENT

 

EU-TURKMENISTAN: WAYS TO NEAR EACH OTHER

 

 

EU countries activated their efforts on diversification of gas supplies to Europe. Intensive talks on direct delivery of Turkmenistan’s gas to the Union were on this week in Brussels. On the other hand, President of Turkmenistan Gurbanguli Berdimuhammadov, meeting November 5 in Brussels with President of European Commission Jose Manuel Barosso, stated huge interest in the EU, an integrated energy market.

 

 

«SOFAZ’S REVENUES WILL EXCEED $4.5BN IN 2008» - SHAHMAR MOVSUMOV

 

«The revenues of the State Oil Fund of Azerbaijan from the very day of establishment (December 1999) have reached $5bn, compared to $2.8bn of expenses», said during the news conference Shahmar Movsumov, SOFAZ’s Executive Director.

 

 

CIBC

 

CZECH PRIME-MINISTER MET WITH CIBC MANAGEMENT

 

On November 5 within the II Energy Forum in Prague took place the meeting between Prime-Minister of the Czech Republic Mirek Topolanek with President and CEO Caspian Integration Business Club (CIBC) Telman Aliyev.

 

 

EXCLUSIVE

 

 

«GERMANY IS HIGHLY INTERESTED IN DIVERSIFYING ITS SUPPLY SOURCES AND ITS SUPPLY ROUTES FOR ENERGY» - MICHAEL GLOS

 

«Germany is highly interested in diversifying its supply sources and its supply routes for energy, in order to reduce risks of disruption to supply. For this reason, Germany would welcome an increased involvement of German companies in Azerbaijan. But the decisions on specific projects and their economic viability is a matter for the companies themselves. This also applies to the transport of raw energy materials to Germany», – said Michael Glos, Federal Minister of Economics and Technology, in his exclusive interview with Caspian Energy Investor.

 

 

 

EBRD FOCUSES ON DIVERSIFICATION OF AZERBAIJAN ECONOMY WITHIN THE FRAMEWORK OF NON-OIL SECTOR – VAREL FREEMAN, EBRD FIRST VICE-PRESIDENT

 

“The EBRD is now working with 8 Azerbaijani banks. We assist them in rendering services to customers. These services cover extending special loans, mortgage lending and loans for small and medium business. The last point is a very important aspect of cooperation between the EBRD, banks and government of Azerbaijan. Luck of foreign investments or, let us say, capital inflows into the banking sector is one of the key obstacles for private banks in Azerbaijan to progress. That is why we extend loans to banks to ensure competition in the banking sector and facilitate assessing international capital markets”, Varel Freeman, EBRD First Vice-President said in the exclusive interview to Caspian Energy Investor.

 

 

CASPIAN REGION

 

Kazakhstan

 

KAZAKHSTAN TOUGHENS REQUIREMENTS FOR SUBSOIL USERS

 

KASHAGAN PROJECT IN DANGER

 

The talks on delaying commercial production at Kashagan (Kazakh sector of the Caspian Sea) have reached their dead-end. The production at Kashagan, the world’s 30-year largest oilfield, with its extractable deposits of a minimum of 7-9bn bbl, is delayed already second time. The initial date was the year 2005, but the operator experienced financial and technical ‘issues’ and the project has been postponed until the late 2008.

At the same time, state agencies toughened their pressing. Ministry of Environment of Kazakhstan said it would demand suspending Аgip КСО unless by November 22 the environmental issues are resolved. Alongside, Alongside, Kazakhstan enacted the revisions to regulatory in order to toughen requirements for subsoil users.

 

 

 

BOARD OF MINISTRY OF ENERGY AND MINERAL RESOURCES OF KAZAKHSTAN HELD A SITTING

 

The Board of the Ministry held a sitting on October 31 at the Ministry of Energy and Mineral Resources to discuss such issues as preparation of energy and coal mining enterprises for autumn-winter season, application of budget funds extended to implement programmes of branches and introduction of the state language to office management.

 

 

Russia

 

 

GAS

 

NORD STREAM CONSIDERING A ROUTE

 

COST-EFFECTIVENESS OF GAS SUPPLIES UNDER DOUBT

 

Since the very beginning the Nord Stream project has been opposed by Baltic Countries, Poland and Belarus. Now its economic cost-effectiveness is under doubts, says Alan Reilly, Expert for European Competition Affairs.

 

 

 

MEP

 

SOCAR EXPORTED OVER 6.5MT OF CRUDE IN JANUARY-OCTOBER

 

During January-October SOCARMO exported over 6.5MT of crude using various routes, Caspian Energy Investor reports with reference to SOCAR.

 

 

TRANSPORTATION

 

Caspian Sea ports

 

 

EXHIBITIONS

 

TWELTH TIOGE OIL&GAS CONFERENCE DUE IN ASHGABAT

 

The Turkmenistan International Oil & Gas Conference takes place on 14-15 November in Ashgabad under the theme “Strategic development of Turkmenistan’s oil and gas reserves and the prospects for international cooperation”.

 

 

 

II POLAND’S NATIONAL EXHIBITION IN BAKU

 

Minister of Economics of Poland Piotr G. Wozniak is on official visit to Baku, Caspian Energy Investor reports referring to Pole Embassy in Baku.

 

 

 

THE 13TH AZERBAIJAN INTERNATIONAL EXHIBITION BIHE-2007 LAUNCHED IN BAKU

 

The 13th Azerbaijan International Exhibition BIHE-2007 opened on November 6 at Heydar Aliyev Sports and Exhibition Complex, organized by ITE Group PLC and its exclusive partner Iteca Caspian LLC., Caspian Energy Investor reports.

 

 

ECONOMY

 

 

PRESIDENT OF TURKEY ABDULLAH GUL CAME TO AZERBAIJAN

 

    On November 6 President of Turkey Abdullah Gul started his official visit to Azerbaijan. Officials of Turkey’s Embassy in Azerbaijan told Caspian Energy Investor the President is accompanied by representative delegation of government members and businesspeople.

 

 

RUSSIA REVISES SOCIAL AND ECONOMIC DEVELOPMENT FORECAST UNTIL 2020

 

The Ministry of Economic Development has put forward to the government the updated forecast of Russia’s development until 2020, accompanied by forecast of budgetary system parameters until 2020. Now MED is forecasting deficit-free budget for the next 12 years provided the oil&gas transfers keep at 3.7% of the GDP.

 

 

LAW DRAFT “2008 STATE BUDGET OF THE REPUBLIC OF AZERBAIJAN” DISCUSSED

 

During their joint meeting (November 5), permanent commissions of Milli Majlis for Economic Policy, Social Policy, Agrarian Policy, Natural Resources, Energy and Ecology, Legal Policy and State Construction mulled over the law draft “2008 State Budget of the Republic of Azerbaijan».

 

 

EBRD FINANCES ENERGY SECTOR REFORM IN AZERBAIJAN

 

The EBRD is providing a $92 million loan to Azerenerji JSC to finance the rehabilitation of the AzDRES thermal power plant, the largest power plant in Azerbaijan with a capacity of 2,400 MW.

 

CZECHIA SUPPORTS AZERBAIJAN’S MEMBERSHIP IN WTO

 

«22% of oil Czechia is importing comes from Azerbaijan», said Tomas Pojar, Deputy Minister of Foreign Affairs of the Czech Republic, during his meeting (November 2) in Baku with Minister of Economic Development of Azerbaijan Heydar Babayev.

 

 

SHIMAL POWER PLANT RESTARTED

 

After a two-month repair, Shimal power plant was restarted, Azerenerji open JSC’s officials told Caspian Energy Investor.

 

 

NBA’S CURRENCY RESERVES EXCEEDED $3.2BN FROM THE OUTSET OF 2007

 

During January-December the currency reserves of the National Bank of Azerbaijan reached $3,237.4mio.

 

 

SOCAR

 

Drilling

 

 

Handover

 

 

Construction

 

 

 

CONSORTIA

 

Yalama (D-222)

 

 

 

Zykh-Govsany

 

 

 

COMPANIES

 

UKRAINIAN ORPS WILL PRODUCE PETROLEUM PRODUCTS AS PER EUROPEAN STANDARDS FROM 2011

 

UKRAINE INTENDS TO PROCESS OIL AT DISPUTED KREMENCHUG ORP BY ITS OWN

 

Starting January 1, 2011 Ukrainian ORPs will have to produce petroleum products complying with Euro-3 and euro-4 requirements, said, according to RBC-Ukraine, Minister of Energy and Fuel of Ukraine Yuri Boyko.

 

 

 

WORLD MARKET

 

PHYSICAL OIL DEFICIENCY ERA APPROACHING

 

The Organization of Petroleum Exporting Countries (OPEC) said it was ready to produce more crude to supply global demand, said Minister of Industry and Energy of Qatar Abdallah ben Hamad al-Atijjah. He suggested OPEC should not be charged with today’s oil price rise.

 

 

 

EXXONMOBIL RELEASES NEW OUTLOOK FOR ENERGY: A VIEW TO 2030

 

Continued economic progress, population growth and the pursuit of improved living standards in the developing world will be the key driver of global energy demand over the next two decades, Exxon Mobil Corporation (NYSE:XOM) said, releasing the corporation's Outlook for Energy: A View to 2030.