SOCAR changes main line for oil transit

Since February 15th SOCAR has started to supply oil, exported via Baku-Novorossiysk pipeline before that it was to the pipeline Baku-Tbilisi-Ceyhan. PRIME reports citing a statement of the company.

The contract period between Russia and Azerbaijan on oil transit via Baku-Novorossiysk, dated 1996, expired on February 14th. The agreement has been terminated on the initiative of Russia.

Last year “Transneft” stated that Azerbaijan has not fulfilled the contract terms during the last 5 years and transported oil by 2 times less than it is said in the document. The contract considered pumping of 5 million tons of oil, however, the real volume was less than 2 million tons a year. The income from transit did not recover the costs for the support of the pipeline system in proper order.