Business

DISCUSSION ON EIA THRESHOLD

By Anar Jabrayilli Azernews Staff Writer

The "Salyan Oil" operating company held public hearings in Salyan city focusing on the EIA project for the full-field development of "Kursangi-Garabagli" fields.

Addressing the hearings, a representative of Dames & Moore, the company responsible for drafting the EIA, Mr. Jim Rights, said the project envisions six key directions, which include drilling, decommissioning and liquidation of wells, land re-cultivation, purification of reservoir waters, etc. According to him, the project will complete before November 30 and is expected to reflect proposals from broad public and parties to the contract.

Representatives of NGOs and residents of local Garabagli and Garchala villages pointed to the drawbacks in Salyan Oil's operations, which they believe cause environment pollution.

General director Colin Monroe pledged to take all comments into account.

Another exploration well to be drilled on Garabagli

Before the end of this year, a third exploration well will be drilled on Garabagli field, according to the general director of "Salyan Oil" Colin Monroe. Describing the results obtained from the drilling of the first exploration well as reassuring, he said drilling of the second would complete at the end of August. He then voiced a hope that it would also yield good outcomes.

According to him, having drilled new and restored old wells, the company will hike daily output by 400 barrels.

325 wells owned by "Salyan Oil"

There are 325 wells owned by "Salyan Oil" on the contract area covering onshore fields of "Kursangi-Garabagli", according to the company's general director Colin Monroe. At present, 260 wells are producing oil with an average daily flow rate of 6,000 barrels. 85 of these wells are located on "Garabagli", while the rest on "Kursangi".

Mr. Monroe added that oil production from some of the 65 standstill wells would be resumed before the end of this year.

Development of the fields started in 1961, with a total of 768 wells to this end, of which "Salyan Oil" rejected more than half as unfit.

The contract is owned by SOCAR with a 50% stake, EBRD with 30% and Delta Hess with 20%.

EUROPEAN COMMISSION EXTENDS PROJECT DEADLINE

The European Commission TACIS program has given a one-year extension for implementation of the project "Assistance in establishing the ministry for fuel and energy and purification of oil-polluted territories", SOCAR said last week.

Besides, TACIS has allocated additional Euro800,000 to continue the work. 80% of the amount will be spent on the first and 20% on the second part of the project.

The European Commission previously allotted Euro1.6 million, which was spent on treating the oil-stained lands and transformation of "AzNefteKhimMash" for API standards.

Work toward establishing the ministry will be carried out in the coming 12 months.

CIS PREMIERS' MEETING AGENDA READY

Around 20 economic issues will be discussed by CIS prime ministers in Ashgabat in late September. According to a government source, the premiers will focus on the free trade zone activity, ways of simplifying taxation and customs regimes, etc. Azerbaijan will be represented by prime minister Artur Rasizadeh.

"CIS-PARTNERSHIP" FORUM DUE IN BAKU

Implementation of the CIS inter-state program of support for small enterprise, preparation of a declaration on small and medium enterprises within CIS, preparations for the "CIS-Partnership" business forum and other issues were discussed in Dushanbe, Tajikistan, during the 10th meeting of the CIS Consultative Council for small business development. The meeting was attended by a representative of the Azerbaijan Ministry for Economic Development.

The meeting decided to hold the "CIS-Partnership" forum in Baku in September-October 2002. The Ministry intends to set up a working group to make necessary preparations.

TENDER RESULTS NOT KNOWN YET

There have been media publications lately suggesting that Japanese Nippon Steel/Sumitomo has won a tender for construction of the gas pipeline to the "Severnaya" power station after paying a tidy sum in bribe to local authorities. The company was reported to have submitted the highest evaluated bid (JPY14,025,200,000).

Chairman of the tender commission, general director of the "AzerNagl" production unit Nazim Samadzadeh has described such publications as ridiculous. According to him, the tender results have not been announced yet. The commission started evaluating the bids on July 9 and the work may take up to 90 days. After the winner is chosen, the commission's decision will be sent to the Japan Bank for International Cooperation (JBIC) for approval, he added.

JBIC has provided the loan of JPY18.3 billion for 40 years with a yearly interest stake of 0.75%.

4bn c.m. of gas to be

purchased in Russia this year

Azerbaijan is expected to buy 4 billion cubic meters of gas from Russian Trans-Nafta and ITERA in 2001, according to the general director of "AzeriGas" Nazim Samadzadeh. Under the agreement SOCAR signed with these companies in March, Russian gas supplies are to constitute around 15 million cubic meters a day.

Mr. Samadzadeh said 2.2 billion cubic meters of gas had already been received from Russia this year.

Most of the gas being purchased is supplied to power stations, with 7.5 million cubic meters of natural gas supplied to the Mingachevir thermal power station a day. Although gas is twice as expensive as heating fuel, the government has chosen this as a way out of the energy crisis, he said.

Natural gas is used to generate electrical energy because the heating fuel produced by refineries is not sufficient.

INVESTMENT PROGRAM FOR 2002-2004 READY

The Ministry for Economic Development has prepared the investment program for 2002-2004. The program contains around 300 projects, including those of reconstruction of enterprises slated for privatization.

The program also envisions setting up enterprises processing agricultural produce, production of construction and other goods, as well as infrastructure, chemical and energy projects.

Investment totaling $4 billion is to be attracted to the economy under the program.

TAX CO-OP WITH RUSSIA, LITHUANIA ON AGENDA

The Azerbaijan government is expected to sign agreements on cooperation in the area of taxation with Russia and Lithuania. According to a government source, the agreements concern avoiding double taxation and exchange of information in the area of taxes.

REFUGEE COMMITTEE READY FOR FOOD DISTRIBUTION

In May 2001, the International Federation of Red Cross and Red Crescent societies suspended food assistance to 33,000 IDPs, 18,000 were deprived of food aid from the UN World Food Program and 6,000 others from Arabic organizations. As a result, a total of 57,000 displaced people stopped receiving food assistance from international organizations. This should not look as something extraordinary as international donors normally provide humanitarian aid for a period of 3, 5, or 7 years, while the Armenian-Azerbaijan conflict has been underway for much longer than that, the State Committee on Refugees said in a statement Tuesday.

The Committee is expected to start purchasing flour, rice, sugar, and vegetable oil to for the 57,000 IDPs with the AZM906 million to be provided by SOCAR following a recent presidential resolution.