Oil & gas news

CASPIAN STATUS IN FOCUS IN ASTANA

Deputy foreign ministers of the Caspian nations started discussing the legal status of the Caspian in Astana. The discussions are expected to proceed till Wednesday. Azerbaijan is represented in the negotiations by deputy foreign minister Khalaf Khalafov.

The parties are expected to exchange views to reach a common position of the coastal nations toward the Caspian status.

BAKU-TBILISI-ERZURUM NEGOTIATIONS RENEWED IN LONDON

Negotiations on the Baku-Tbilisi-Erzurum gas pipeline renewed in London Thursday, as spokesmen from the Azerbaijan, Georgian and Turkish governments, BP and WB specialists were taking part in the talks. The negotiations started on September 9, but then was put off following the terror attacks in the US.

A SOCAR source told Azernews Friday that the talks are scheduled to end this week, but is likely to progress even longer. Azerbaijan is represented by a delegation led by head of the SOCAR foreign investments department Valeh Asgarov.

Dominating the London talks are transit tariffs, as Azerbaijan and the investors in the Shah Daniz project offer $2 per 1,000 cubic meters of gas, while WB and Georgia insist on $5-10.

The Baku-Tbilisi-Erzurum conduit is to be completed in the first half of 2005, with its estimated length of 1,000 and cost totaling over $1 billion. The pipeline is planned to export some 80 billion cubic meters of gas in 15 years.

WELL DRILLING ON AZERI TO COMPLETE IN EARLY 2002

The drilling of Azeri B-01 well in the central Azeri field as part of Phase-1 of the full field development of the Azeri, Chirag and deepwater Gunashli fields is expected to end in early 2002. A source from BP told AssA-Irada Tuesday that the drilling would be spud in October and last some 80 days. The estimated well depth is 2,304 meters, with the "Dada Gorgud" semi-submersible drilling rig being engaged.

The well is believed to yield 15,000 barrels of crude a day in its first year of operation.

CRUDE PRICES RISE

Crude prices have soared worldwide following the terror attacks in the US. The Newmax stock exchange in New York had suspended trading for a second day and it was still obscure when it will resume.

A barrel of Brent crude rose by $5.6 to $33 at London Stock Exchange. Specialists are still hesitant to predict any further changes in crude prices, with many maintaining that oil prices will remain high till Newmax renews its trading.

Sharp upswings in oil prices were observed earlier, as crude prices skyrocketed to the present day's level after Opec decided to slash oil exports during the war in the Persian Gulf and last year.

SOCAR INVITED TO RUSSIAN OIL FORUM

Moscow is expected to play host to an international forum, "Russian oil: Present and past", on November 22-23 as part of the 10th anniversary of Russian oil giant, LUKoil.

Attending the forum will be executives of Russia's federal and regional governments, representatives from Russian and overseas oil, gas and petrochemical companies, scholars, experts from the largest auditing, consulting and investment companies and banks.

SOCAR has also been invited to partake in the event.