Oil & gas news

SHAH-DANIZ GAS DEAL RATIFIED

The Milli Mejlis ratified on Monday the agreement between Azerbaijan and Turkey signed in Ankara on March 12 on natural gas supplies from Shah-Daniz field to Turkey.

According to experts, natural gas exports will start in late 2004, when an estimated 2 billion cubic meters of gas will be produced. The indicator is expected to make up 3 billion yearly in 2005, 5 billion in 2006 and 6.6 billion in 2007-2018.

According to preliminary data, natural gas reserves in Shah-Daniz constitute 1 trillion cubic meters. $2.6 billion in investment is needed for initial gas production, which includes construction of the Baku-Tbilisi-Erzurum gas pipeline with initial throughput capacity of 7.2 billion cubic meters per year. The pipe will be 700km long to the Turkish border.

CLOSED-DOOR SHAH-DANIZ PRESENTATION HELD

A closed-door presentation of future operations on the "Shah-Daniz" prospect was held at the Hyatt Regency Hotel of Baku Monday. A source from BP, operator of the project, said no official reports would be released for press.

According to an informed sources, the ceremony was attended by the SOCAR president Natiq Aliyev and head of SOCAR's foreign investment section Valeh Alasgarov.

The associate president of BP in Azerbaijan David Woodward says $2.7 billion will be invested in "Shah-Daniz" on the first stage and first gas from the prospect will reach Turkey in 2004.

CIS OIL LEGISLATION CONFERENCE DUE IN US

An international conference, "Oil and gas in CIS countries: legislation and taxes", is due in Houston on May 30-31. A source from SOCAR told AssA-Irada Tuesday that a special presentation dedicated to Azerbaijan would be held as part of the conference as head of SOCAR's foreign investment section Valeh Alasgarov is expected to report on "Foreign investment climate in Azerbaijan's oil and gas sector". In addition, the AIOC tax specialists will disclose some taxation aspects of PSAs.

Also being planned on are special presentations for Russia, Ukraine and Kazakstan.

YEARLY PROFITS TO REACH $5BN IN 10 YEARS

Beginning from 2011, Azerbaijan will be earning more than $5 billion a year from the Contract of the Century and Shah-Daniz projects alone, according to the AIOC president David Woodward.

He said the amount would be made up of SOCAR interest stakes in the projects and the use of Azeri hydrocarbons by foreign companies.

To date, Azerbaijan has earned $1,240,000,000 from BP-involved projects, including $606 million is net profit ($360 million in bonuses and $246 million in revenues from profit oil). The remaining $634 million is made up of the services provided by local companies, salaries to personnel, lease payments, etc.

INTERNATIONAL ENERGY, ECOLOGY, ECONOMY CONGRESS DUE IN BAKU

The sixth international congress, "Energy, ecology, economy", organized by the International Eco-Energy Academy, is due in Baku on September 25-28.

According to the president of the Academy Fagan Aliyev, the congress will focus on Caspian ecological problems and oil transportation systems, energy saving, climate changes, renewable energy, legislation and normative documents.

Representatives of foreign oil companies, SOCAR, state entities and NGOs are expected to take part.

SOCAR INVITING BIDS FOR METHANOL SUPPLIES

SOCAR has announced an open tender for the supplies of 3,500 tons of methanol. Interested bidders can obtain tender documentation by paying a participation fee in the amount of $236. All the bids are to be supported with a security bid of $20,000.

The deadline for tender bids is June 20, with unsealing scheduled for June 21 at SOCAR.

Azernews

AssA-Irada