Baku-Makhachkala-Novorossiysk

SOCAR will transport 170,000 tons of oil via Baku – Novorossiysk pipeline in 2014

In January – February, SOCAR will transport 170,000 tons of oil via Baku – Novorossiysk pipeline, and then Azeri oil exports via the pipeline will be ceased. Last year the company exported via the pipeline 1.751 million tons of oil, by 313,000 tons less than in 2012. The Russian Transneft claims that the company reserves the pipeline’s division Makhachkala – Baku at the background of the lack of initiatives of Azerbaijan for closure of the commercial agreement for oil transit.
Translated by Nadezhda Poltoratskaya

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The agreement between SOCAR and Rosneft has expired

On January 13th 2014, it was 6 months since closure of the agreements between SOCAR and Rosneft within the bounds of the visit of the President of Russia, V. Putin to Baku on August 13th 2013. Rosneft and SOCAR agreed then about foundation of the joint venture on a parity basis for the projects on hydrocarbons exploration and production in different states including Russia and Azerbaijan and joint use of the pipelines and the terminals. Later the chief of Rosneft, I. Sechin explained that the Agreement would help the companies to broaden the geography of activity and to get access to the new markets and resources, and to optimize oil and oil products supplies at the expense of the joint use of the existing infrastructure. 

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Trafigura may consolidate Turkmen supplies to port of Makhachkala

Transneft studies possibility to extend capacities in the port of Makhachkala to provide the acceptance of oil to the Makhachkala-Novorossiysk oil pipeline, the company’s Head N.Tokarev reported.
“We have so lot of interested persons in Makhachkala that we think about extension of capacities from Makhachkala to the Novorossiysk site,” – he said.
Not only Russian oil, but also oil from Kazakhstan and Turkmenistan is transshipped in the port of Makhachkala.

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SOCAR: Operation of Baku-Novorossiysk is profitable for both parties

Operation of Baku-Novorossiysk is profitable both for Azerbaijani and Russian parties, the representative of SOCAR said, answering the question about stopping of deliveries of Azerbaijani oil via the pipeline next year.
“This is profitable for Russia, as it is the first time when Russian oil can be delivered to Ceyhan (via BTC) or in physical terms or in the form of SWAP”, he noted.

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Azerbaijan to reduce oil transit via the RF

From February 2014 SOCAR will reorient oil export from Russia to Turkey, a number of information agencies reports.
The point is in redislocation of Azerbaijani transit to Turkish port Ceyhan connected to the oil line from Azerbaijan via Georgia. Thus, the positions of Turkish party at the Black Sea-Caspian regional market of oil transit services can strengthen.
This year SOCAR will transport 1.8 million tons of oil via Baku-Makhachkala-Kizlyar-Tikhoretsk-Novorossiysk. Next year Azerbaijan is going to move the transit of its oil mainly to Turkey.

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Deliveries of Baku oil via Russia to stop in 2014

In 2014 oil from Baku won’t be delivered via Russia: Transneft announced the conservation of the pipe on the border with Azerbaijan where about 1.5 million tons will pass in 2013. The negotiations about the prolongation of transit failed. Azerbaijan exports oil via Baku-Tbilisi-Ceyhan where the tariffs are much lower. Transneft lost 1-2 billion RUR of potential income, as Rosneft is not going to fill the pipe, discussing reverse pumping of raw materials from Russia with Baku.
Transneft starts temporary shutdown of Shirvanovka-Makhachkala oil line on the border with Azerbaijan, the advisor to the company’s President Igor Dyomin reported yesterday. He specified, the decision was conditioned by the fact that in February 2014 the contract for pumping of Azerbaijani oil via Baku-Novorossiysk expires and the new document wasn't signed.

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The reversing of Baku-Novorossiysk should be hurried up

Azerbaijan should intensify negotiations with the Russian side about the reversing of the Baku-Novorossiysk pipeline for the start of Siberian oil transporting. Otherwise, Azerbaijan will have to bear large expenses for the maintenance of Baku-Novorossiysk, Baku-Supsa and Baku-Tbilisi-Ceyhan pipelines the transporting of which is considerably lowered.
In 2017, oil transporting via the pipelines of Azerbaijan will lower by 11.4% to 39.7 million tons in comparison to the forecast for 2013.
They forecast that oil transporting will be 44.8 million tons in 2013, 43.7 million tons in 2014, 44.5 million tons in 2015, and 42.2 million tons in 2016. In 2012, oil transporting was 43.3 million tons. Even the entire volume mentioned above is not enough to load BTC by 100%.

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Rosneft has secretly discussed Baku-Novorossiysk pipeline

On November 9th, the Board of Directors of Rosneft held the secret session and did not make public the decisions made. The reason for the secrecy is the discussion of reversing of the Baku-Novorossiysk pipeline because its realization could cause serious damage to Russia.
The Baku-Makhachkala- Novorossiysk pipeline transports now 6 million tons of oil. 1.5-2 million tons of Azeri oil was annually supplied via Baku-Makhachkala, and then it was mixed with 4 million tons of oil from Kazakhstan, Turkmenistan and the Caspian deposits of Lukoil.

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Export of Azerbaijani oil via Baku-Novorossiysk reduced by 4.6%

In January-October SOCAR reduced oil exports via the Baku-Novorossiysk pipeline by 4.6% compared to 2012 – to about 1.497 million tons, the company reported on Saturday.
On May 5th the RF PM Dmitry Medvedev signed the regulation about termination of the Baku-Novorossiysk oil transit agreement between the RF and Azerbaijan. The agreement signed in 1996 presupposed the annual prolongation and possible termination from January 18th, 2014. SOCAR is going to sign the agreement with Transneft stipulating oil export on the new conditions from 2014 and continue its deliveries till the end of 2013.
In 2012 SOCAR increased export via the pipeline by 3.8% - to 2.064 million tons of oil.

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In 2013, Azerbaijan has exported 25.904 million tons of oil, and sold it by $1,435 per ton in September

In January – September, raw oil shared 84.75% in total Azeri exports, compared to 84.6% in 2012, 86.62% in 2011, 86.53% in 2010, and 81.57% in 2009.

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