Business

IRAN CLAIMS OWNERSHIP OF ARAZ-ALOV-SHARG

On July 21, Iran's deputy foreign minister Ali Ahani forwarded a sharp protest note to an Azeri embassy representative, which says that Iran will not allow any foreign country or company to infringe upon its rights and national interests in the Caspian. This report has been released by the Union of Integral Azerbaijan, which quotes French international radio.

Iran believes the agreement Azerbaijan has signed with foreign companies over Albors prospect (Iranian name of Araz-Alov-Sharg) has no legal effect, while Iran's oil ministry threatens to block the activity of foreign companies on the prospect as it claims ownership rights for 20% of the Caspian water basin in question.

SOCAR told Azernews Monday that the agreement on the mentioned prospect was signed 3 years ago and ratified by the Azerbaijan parliament in March 1999.

The source went on to say that if the Caspian were to be divided with a median line the field would be in the Azerbaijan sector.

A source from BP, project operator, has said that foreign companies have signed a contract with the Azerbaijan government and the issue is no longer a concern for the company, as it is for the state. Deepwater research is already underway on the prospect.

The same dispute underlies the delaying ratification by the Azerbaijan parliament of the agreement on Lerik-Daniz signed in April 1999.

Deepwater survey launched

Deepwater survey of the above prospect has started and is expected to complete in the first half of 2002, a source from BP, project operator, told Azernews.

Specialists from Azerbaijan's scientific institutions will also be engaged in the research work. BP intends to apply the yet unrivalled technology for a comprehensive survey of deepwater portions of the Caspian.

BP holds a 15% interest stake in the PSA, SOCAR - 40%, ExxonMobil - 15%, Statoil - 15%, TPAO - 10%, and Alberta Energy - 5%.

First well next year

Drilling of the first exploration well on Araz-Alov-Sharg prospect is scheduled for the second half of 2002, the BP source says. Drilling will follow an Environmental Impact Assessment and its approval by a relevant government office.

The well will be drilled on Alov prospect off the Dada Gorgud semi submersible drilling rig.

The prospect is believed to contain 200 million tons of oil.

CIVIL AVIATION TOPS NON-OIL SECTOR INVESTMENT

The greater part of the $500,000 credit from the US Government, targeting the first stage of the "Studying the air traffic control systems in the Caucasus" project, is earmarked for realization of the Azerbaijan project, experts of the US "Northrop Grumman" company said Friday.

As part of the first stage, materials have been collected to develop a strategic business plan for integration and development of the regional air traffic control system, civil aviation infrastructure, technical development concept and financing schemes in accordance with the International Civil Aviation Organization (ICAO) standards. Implementation of the project has been vested in the US Trade and Development Agency (TDA).

In his recent meeting with the general director of "Azerbaijan Hava Yollari" state concern Jahangir Asgarov, the project executive Bruce Howard said, "The assessment work undertaken in Azerbaijan is excellent. The Air Traffic Control system is in full conformity with international requirements, while the airport terminal, its equipment and AzAL personnel are simply remarkable".

The next stage of the project, due in late August, calls for an analysis and summary report on the basis of materials collected, while a complete business plan will come out in November.

J. Asgarov indicated that of all non-oil economic sectors the civil aviation one has drawn the highest investment volume of $200 million.

PENSION REFORM CONCEPT APPROVED

In a move to strengthen the social protection of the population, improve pension provision of citizens and upgrade the mechanism of establishing and paying pensions, President Aliyev has approved the pension reform concept in Azerbaijan.

Leading national newspapers have published the reform concept, the document outlining core objectives and principles of the pension reform, stages in its implementation and anticipated socio-economic outcomes.

The reform is expected to take several stages in the time period between 2001 and 2005. The initial stage calls for the establishment of legal framework for pension provision, the second -- creation of comprehensive database and the third - collection of information concerning the incomes of able-bodied and other pensioners. The final stage envisions calculation of pensions on the basis of the database.

AZERI COMPANIES TO TAKE PART IN US EXHIBITION

Days of Azerbaijan are due in Washington on September 21-22 on the initiative of the joint US-Azerbaijan Chamber of Commerce. President Aliyev is expected to take part in the event as well.

A source from the National Confederation of Entrepreneurs told Azernews Thursday that an exhibition arranged by British Spearhead Exhibitions will be held as part of the Days of Azerbaijan, displaying both Azeri and US products. 20 seats and a discount of $1,000 have been allocated to the private sector.

According to the source, Azerbaijan Electronics, Azercell, Veysaloglu, Inji, Saf and other companies are interested in participating in the show.

DOLLAR RATE NOT TO EXCEED AZM5,000 THIS YEAR

United States Dollar is being traded at over AZM4,700 in exchange stations of Baku. The upswing in the Dollar's rate was more rapid in the first half of the year, while in July the Azerbaijan Manat depreciated 3%. Commenting on the rise, professor of economics Nazim Imanov said, "The National Bank started mitigating the regulation of the Azerbaijan Manat rate in 1999. The Dollar has grown in value 20% over the past two years, while no particular rises were in evidence in 1995-1999". According to him, the USD will rise to around AZM 5,000 this year, but will not exceed it.

"GARADAGH-CEMENT" GETTING READY FOR JUBILEE

A program of festivities is being put in place on the occasion of the 50th anniversary of the Garadagh cement works, which has now been transformed into the "Garadagh-Cement" open joint stock company, according to a source from the company.

The first in a series of events is expected on July 26, when the company administration will congratulate those who took part in construction of the plant and contributed to its popularity. Those who have dedicated all their work experience to the enterprise will receive various financial premiums.