ACCENT
"SHAKH-DENIZ" GAS AND TURKISH MARKET
SANCTION TO START DEVELOPMENTS ON "SHAH-DENIZ" IS SLATED FOR JULY OF THE CURRENT YEAR
On 21 February of the current year in Baku partners of "Shah-Deniz" project and Azerbaijan government have inked a deal "Agreement with the Government of - the Country-Owner the transit territory -Azerbaijan Republic for transit (AGCOTT), transportation and sales of natural gas" and "Memorandum of understanding for forming gas supply company" in conforms to the same Azerbaijan will be supplied by the natural gas produced from "Shah-Deniz" At low tariffs.
The third agreement is "Commercial principles of Southern Caucasus pipeline" - envisages formation of the gas pipeline Baku-Tbilisi-Erzerum to move Azerbaijan gas to Georgia, Turkey and probably to Europe. The final concluded instrument is this series of documents is the Agreement for "Guarantee of Azerbaijan Government" to approve its intent to realize the project.
AGCOTT as an appendix to The Intergovernmental Agreement has been ratified by the parliament of Azerbaijan and Georgia recently. Conclusion of these instruments is a significant stage in realization of the project "Shah-Deniz" and marks the final stage of projecting, tendering and activity on development of questions to bring to the slated sanctioning of the project for July 2002.
The most significant stages of "Shah-Deniz" project are:
Ratification of Azerbaijan IGA/ AGCOTT 23 October2001 Ratification of Georgian IGA/ AGCOTT 19 December2001 Ratification of Georgian IGA/ Agreement on gas purchase and sales by Turkey 28 December2001 Delivery of first gas projected for October 2005...
Marketing group
Shah-Deniz in Turkey
Supply projects
New law
Strategy; rationale
AZERBAIJAN AND RUSSIA - COOPERATION ON THE "REQUIRED LEVEL"
RAPPROCHEMENT OF AZERBAIJAN AND RUSSIA IS ONE MORE EVIDENCE OF "NEW PEACE"
On 26 March 2000 having come to the power of Vladimir Putin, emerging his predecessor Boris Eltsin, Azerbaijan-Russian relations have changed from stark political "lodging" to gradual height and come to "low-level flight".
"The Russian-Azerbaijan relations gained new impulse after Vladimir Putin was elected the president of Russia", says Heydar Aliyev. "Since that time the process of development of our relations have been intensified, within a short time frame we have already managed to hold 16 meetings. And each our meeting was intentional and born a broad sense", stated the president.
Exaggeratedly respectful attitude of the Russian leader to the personality and giant political authority of the Azerbaijan president was not in delay to develop into mutual sympathy on the government level. Heydar Aliyev will be in state visit from 24 to 25 January - this is the highest level of staying in Russia capital of such eminent guest and not every president is afforded to the same. And very likely, within CIS this had happened for first time, reported an official source. The progress in the relations between the countries touches both political and economic spheres of life. And certainly, this will positively affect millions of people bounded with family and professional ties in both countries.
"From the first minute up to now I have been pleasing with everything," told Azerbaijan president after the ceremony of inking a bilateral instruments. He appreciated discussions given, especially the talks that was held Thursday in the residence of Vladimir Putin situated near Moscow. "We changed views on numbers of problems and found out that our opinions coincide," - noted Aliyev. In his turn, Vladimir Putin highly appreciated negotiation nature and its results as expressing sincere pleasure to see Heydar Aliyev in Moscow- "our dear guest" and representatives of Azerbaijan delegation. Both leaders noted that they consider the current visit as "an important step for developing bilateral relations which took the main impulse during the visit of the president Putin to Baku last year. As stated the head of Russia, the relations of "our countries are being developed in economy as well as in policy, coordination of efforts on international arena is strengthened." This is a positive indicator of improving relations between our two countries," he stated. Russia president reminded exchange of views on wide range of problems, which happened in his apartment last night. "I do not doubt that your visit will give a significant impulse to develop cooperation both in political sphere and state level," - stated V. Putin noting the "good work" of intergovernmental commission. Upon completion of the negotiations leaders of two countries have signed Join statement, Treaty for long-term economical collaboration in duration up to 2010 and also Treaty for status terms of use Gabala radar station. In the presence of both parties were signed: Treaty for main principles and directions of economic collaboration, Treaty for production cooperation and information interchange in controlling tax law, Treaty for activity of frontier representatives.
It is noticeable, saying about different spheres of collaboration of two countries we see 10 years history of both countries shows positive impulse to development has been gained by both countries in last two years only...
Military
Caspian region
Economy and finances
Information and Culture
Sum up
So, historic-customary and rational links of Azerbaijan-Russia relations clear the bar over different political prejudices.
Azerbaijan supplement to Russian "Izvestiya" has already published the articles like "Big politic -is a fragile art," the article analyses apportioning of political powers in Azerbaijan. The publication "Forgotten refuges" tells the tragedy in Nagorny-Karabakh, problems unnoticed in Europe. Also, in the publication "Baku may become a Caucasian support for Russia" highlights the problem concerned with antiterror operations in Afghanistan.
Undoubtedly, presently Russia, as never before, is interested in repairing strong economical and geostrategy ties with Azerbaijan. Azerbaijan with the assistance of its foreign partners implements two giant export projects: gas-line project Baku-Erzerum (LUKOIL - 10% stake) and oil-line project Baku-Tbilisi-Ceyhan. Russia companies Itera and Yukos also urge to take part in the above projects. And in the event of positive solution, already in 2005 Russia with the assistance of Azerbaijan oil-gas pipeline scheme will have managed to get access to Mediterranean markets and also to Turkey market as well as to European countries markets.
It is noticeable that the fact of Azerbaijan-American partnership in implementing of these projects (Recently, G. Bush has canceled 907 clause to the Act on "Liberty Support" and appreciated Azerbaijan for the rendered support in antiterror operations in Afghanistan. The vice-president G. Chainy has promised to grand $2,5 million for Baku-Tbilisi-Ceyhan construction) assisted promotion of Azerbaijjan-Russia relations. The same factor, on Azerbaijan example, is one more evidence of the new geopolitics world alteration and proves that USA and Russia may uphold their own interests in Caspian region by parallel cooperation.
EXCLUSIVE
"BTC" project is commercially sound and open for everybody Interview with president of SOCAR Mr. Natig Aliyev
It is not important today how long it will take for to establish the sponsor group
C.E.: Mr. Aliyev how you apprise the present geopolitical situation in the Caspian region?
Natig Aliyev: The situation is stay to be strain but in comparison to the situation of 1993-1994 we see promotion. I think today Caspian region countries, particularly Azerbiajan, have defined theirs political and economical interests finally.
First of all that appeared because of contract signed, continues oil production with an assistance of foreign companies - that is a positive matter.
Azerbaijan oil with no problem is being supplied to Azerbaijan world markets continuously, though many years ago everybody doubted and told that signed contracts will not be implemented or low speed even if were signed, we will suffer difficulty to access world markets. In other words, in comparison with past we see end of pessimist play.
To date, we see Azerbaijan overcame tasks successfully or unsuccessfully with high speed or low. And in this matter the geopolitic situation, I mean the interest of littoral countries, is defined. And that is fairly clear. Geopolitic interests -first of all that is USA and western countries which fast operate in the country, in other words they achieved focussed targets in Azerbaijan. They went dawn in Azerbaijan for a long time and we do not doubt that the process is reversible. At present everybody is sure the investments of billions US dollars allocated by them are in effect. Investors are sure nothing extraordinary will happen.
On other part, Turkey has expressed interest in region development too. You know the good and brotherhood ties with Turkey achieved because the latter is being involved in the region economy too. Mostly that was achieved since of TPAO participates in several contracts - probably that gave an occasion to. Moreover, another reason is solving the matter of Baku-Tbilisi-Ceyhan pipeline and gas sales to Turkey. Now we may say Turkey and Azerbaijan are partners for several years. Certainly, the key factor is to attract Russia to Azerbaijan. As you know for long time Russia had its own economical interests in Azerbaijan. Although the positive changes in relations of two countries concerned with V. Putin's coming to the power - pragmatical and realistic politic. For the last year there is a drastic change in relations between countries, most problems on relations of two countries are solved. Remained issues will be during a year. North pipeline is under interruptible operation and moved 2,5 million tons of oil.
'CONTRACT OF THE CENTURY': SEVEN YEARS
TO DATE, AZERBAIJAN HAS POSTED PROFIT AT $644 MILLION
Interview with First Vice-president of SOCAR Mr. Hoshbaht Yusifzade
In September 2001, Azerbaijan marked a milestone which played a critical role in the history of independent Azerbaijan, laid a root of a new stage in the socio-economic development of the country, secured economic growth, created conditions for Azerbaijan's integration into the world economy.
The Azeri-Chirag-deepwater Gunashli (ACG) Exploration, Development and Production Sharing Agreement was signed between the State Oil Company of the Azerbaijan Republic (SOCAR) and a consortium of foreign oil companies on 20 September 1994. This was the first major contract signed between the Western oil companies and Azerbaijan for development of offshore oil deposits. A consortium operating company called the Azerbaijan International Operating Company (AIOC) was formed by SOCAR, the U.S. companies of Amoco, Unocal, Pennzoil, the UK companies of BP, McDermott, Ramco, Norway's Statoil, Russia's Lukoil, Turkey's TPAO, and Saudi Arabia's Delta to carry out the development of the field. The contract was ratified by the Azerbaijan parliament, the Melli Majlis, and became effective on 12 December the same year, having already become known in Azerbaijan and elsewhere as the "Contract of the Century."
ANNIVERSARY
ACTIVITY OF AZPETROL ASSISTS DEVELOPMENT AND STRENGTHEN AZERBAIJAN'S POSITIONS IN THE CASPIAN REGION
Interview with the member of the Board of Directors of Azpetrol, responsible for legal issues and strategy, Mikayil Jabbarov
Five years of age from the date of formation of private Azerbaijani Azpetrol Oil Company. We congratulate the company and wish further success in Azerbaijan and International markets.
Caspian Energy: Could you tell of stages of forming Azpetrol company?
Mikayil Jabbarov: Pioneer filling stations of Azpetrol were put in line in 1997. At that time net of filling stations of Azpetrol consisted of three units. In the summer of the current year we will celebrate five years since commencement of our activity on the Azerbaijan market. Within this time frame Azpetrol grew into the group of companies united with the common name Azpetrol and currently this is one of the most recognized trademarks in Azerbaijan.
At present, Azpetrol operates 42 filling stations in the country and three more units will be put into line till the end of February. By the end of the year chain of Azpetrol stations will count 58 units. We are going to expand the geography of the company's activity in Baku and in regions of Azerbaijan as well. So, we continue expansion of the largest chain of stations in Azerbaijan. Also, Azpetrol plans to tackle realization of liquid gas (LPG) and gas station are being built for the same. The first stage of building is focused on 5 complexes to be placed into operation, in the future number of these stations will be increasingly going up.
Total number of employees of Azpetrol amounts to 2200 people. That makes the company one of the largest private employer in the private sector of Azerbaijan economy.
The main achievement within past 5 years is formation and recognition of Azpetrol brand name. Paving the way to the same was not easy. Regular modernization of work principles, quality control procedures on the filling stations, improvement in service procedure are all integral part of our activity. All of these made brand name easily recognizable amid car owners and as a result of that sales of the company ranked first in Azerbaijan.
Despite the fact that number of Azpetrol filling stations made under 5% out of the total filling stations in the republic in 2000, sales statistic for the relevant year illustrated that our company accounts for 45-50% of the total fuel and lubricant sales in Azerbaijan. Such tendency continues to last. We consider these figures as a trust-indicator of car owners to the quality of the fuel being sold on the filling station.
MEP
2002 faces construction start OF BAKU-TBILISI-CEYHAN.
PARTICIPANTS OF BAKU-TBILISI-CEYHAN WILL BE FINALLY KNOWN IN THE BEGINNING OF NEXT YEAR ALREADY
Heydar Aliyev, President of Azerbaijan, has expressed satisfaction with the activity of the Azerbaijan International Operation Company during a meeting with David Woodvord, chief of this oil consortium, in his residency last week.
Expressing attitude towards the work done, president Aliyev has appreciated activity of BP and other oil companies being operated in Azerbaijan. He stressed his intention to support the AIOC's further activity. During the meeting with the head of the state Woodvord reported the average oil production from Chirag oil field had totaled 120,000 tons in 2001 against the target at the rate of 115,000 tons. According to him, based on forecasts, the overall exploitation expenditures of BP Company in Azerbaijan - the AIOC's main shareholder - will make $81 million and $222 million for the capital expenditures. The AIOC intends to raise operational expenses to $92 million and capital expenditures to $990 million in 2002...
Present day of Baku-Tbilisi-Ceyhan
Potential participants of Baku-Tbilisi-Ceyhan
PROJECTS
CENTRAL ASIAN GAS PIPELINE - IT IS TOO EARLY TO SPEAK ON FEASIBILITY
FIRST AN AGREEMENT SHOULD BE ACHIEVED
Islamabad and Kabul were prepared to reanimate the project on construction gas pipeline Turkmenistan-Afghanistan-Pakistan, the head of acting government of Afghanistan Khamid Karzai had stated in Islamabad, reported Reuters. "Both parties agreed upon the conclusion the Transafghan pipeline is a high profitable for our countries as well as for the region entirely", - noted Khamid Karzai making speech in Islamabad on common press conference with his Pakistani colleague Parvis Musharrafi. The project stipulates gas pipeline length 1500 km of which 764 km will run via Afghanistan. Construction works are estimated at $2 billion. Earlier, the Turkmenian leader had expressed his interest in rehabilitation of this project, reported Turkmenistan head Saparmurat Niyazov. "The peace is coming to Afghanistan. So we may lay the pipe over the country's territory to Pakistan," - said Turkmenbashi.The idea to reanimate Transafghan project would be the top matter of the forthcoming meeting of Karzai and Niyazov was slated to take place in Ashkhabad for the recent future, reported Reuter. The same matter has been discussed during the meeting between Niyazov and Elizabeth Johns, Assistant to the Secretary of State of USA, who had visited Turkmenistan early February.
" Sharply changed situation will probably drive American companies to reconsider theirs attitudes towards this project," stated Johns after the negotiations came to end. Moreover, Turkmenian leader has already proposed the Turkmenistan field "Dovletabad" as a certain source for export gas deliveries to Afghanistan, Pakistan, Turkey and Europe. That was stated by Saparmurat Niyazov on the ceremony of opening the device of preparing gas on the largest gas field of the country. Forecast for annual gas export from this field amounts to 100 billion cubic meters of gas, that is sufficient to fill a several export pipelines. "Dovletabad" field holds reserves estimated at the rate of 2 trillion cubic meters of gas, that is a deposit guarantee for the future export gas pipelines, Turkmenian export gas meets all required standards, accented S.Niyazov. To date, Turkmenistan gained a feasible opportunity to meet all placed orders and export its gas via Iran territory.
History
Markets
Export potential
Russian version of gas-OPEC and American version of gas pipeline
Summary