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Nabucco project now in final decision phase
News.Az interviews Dr Stefan Meister, program officer at the
German Council on Foreign Relations.
Azerbaijani President Ilham Aliyev and European Commission
President José Manuel Barroso have signed a Joint Declaration on
Southern Gas Corridor. What is your view of this document?
We are now in the final decision-making phase for the Nabucco
project in which Azerbaijan is the key partner and Turkmenistan
will be a potential second important supplier in the future. The
European Commission has, finally, sent two top officials to Baku
and Turkmenistan to show the political backing for this project
from the European side. I think this declaration is an important
political step towards the implementation of the Nabucco
project. Both sides are willing to finalize the preparation
process of the Nabucco project. In recent weeks we have been
able to read statements from Azerbaijan and Turkmenistan that
there is high interest in the Nabucco project and the EU is now
willing to support this project on the highest level. This may
be a key moment for the success of the Nabucco project.
Are you sure that Turkmenistan will join the Nabucco project?
Turkmenistan has high interest in diversifying customer base for
its gas. TAPI [Turkmenistan-Afghanistan-Pakistan-India], for
instance, is a project that will never be implemented because of
the security situation and the lack of investors. But it shows
how Turkmenistan is trying to strengthen its negotiating
position and how it is searching for alternatives toRussia and
China. The EU would be an ideal alternative and the comments
from Turkmenistan show that there is a big interest in sending a
high volume of gas (up to 40 bcm) to Europe. .
And if Turkmenistan won’t join, what will be Nabucco’s
future?
Gas from Iraq, more gas from Azerbaijan, maybe from Egypt, but I
think there is a need to get more gas from the Caspian region
and especially from Turkmenistan.
Russian Prime Minister Vladimir Putin says that the South
Stream project has better chances of seeing the light of day
than Nabucco. What do you think?
I don't think so, this is more or less a bluff. South Stream is
too expensive, and Gazprom has problems finding the money to
finance it. The second partner, ENI, tried last year to merge
South Stream with Nabucco and to bring in new partners, because
it is too expensive and it will be impossible to earn money with
it when Nabucco is in place. The problems with Ukraine have been
solved at the moment, and there is no pressure for Russia to
build an alternative pipeline in the south.
Some experts say that Russia may use political means of
pressure on Azerbaijan, Turkmenistan and Kazakhstan to prevent
the Nabucco project from going ahead. Do you agree and, if so,
how successful would Russia be?
Geopolitically these states depend on Russia and Russia is still
for some of them an important transit and customer country. On
the other hand, all these countries have diversified their
export of oil and gas, Azerbaijan with the BTC pipeline,
Kazakhstan and Turkmenistan with new pipelines to China. Their
room for manoeuvre towards Russia is increasing and Russia is
losing influence in the region. Therefore I believe that both
Azerbaijan and Turkmenistan support the Nabucco project.
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Belarus Expects to Receive Azerbaijani Oil through
Swap-Operations from Spring
2010-12-22 15:50 / Trend
News
Belarus plans to receive oil from Azerbaijan in March 2011,
the Belarusian news agency BelTA reported with reference to
Belneftekhim Deputy Chairman Branislau Sivy.
He said the country will receive Azerbaijani oil in March 2011
on the basis swap supplies will. "We'll get the Azerbaijani
light via the pipe," he said.
The Belarusian, Venezuelan and Azerbaijani sides have agreed to
swap supplies. Specifically, the State Oil Company of the
Azerbaijan Republic (SOCAR) is interested in acquiring
Venezuelan Santa Barbara oil to sell on the U.S. market. SOCAR
would supply oil to Belarus and receive the same amount
from Venezuela.
Negotiations currently concern 5 million tons per year. Working
on the basis of replacing Venezuelan oil with Azerbaijani oil
will save on transportation costs.
Regarding the Azerbaijani oil, Sivy noted that this option is
beneficial for Belarus. "We'll get Azerbaijani light crude
oil through the pipe and in principle, we have a good economy
for export, " he said.
The implementation of operations under this project provides for
delivering Azerbaijani oil on a CIF basis to Ukrainian ports,
and does not relate to its further transportation, a senior
SOCAR representative said earlier.
Belarus and Ukraine have signed an intergovernmental agreement
on the delivery of oil to Belarusian refineries. The issue of
the further transportation of Azerbaijani oil will be decided
not by SOCAR.
As the basic variant of Azerbaijani oil shipments
from Ukraine to Belarus, is considered the possibility of
transporting oil by the Odessa-Brody oil pipeline through its
start in the averse direction.
The Odessa-Brody oil transportation project sought to diversify
oil supplies to Ukrainian refineries and develop the country's
transit potential. The pipeline's construction was completed in
May 2002. Its trunk has a length of 674 kilometers, with a pipe
diameter of 1,020 millimeters. The capacity of the pipeline and
the terminal is 9-14 million tons per year during the first
stage.
Over the two years since the pipeline's construction, Ukraine
unsuccessfully negotiated the transportation of Caspian oil in
the forward direction. As the country was unable to receive any
concrete proposals from companies, the Ukrainian government
authorized the use of pipeline for transporting Russian oil in
the reverse direction in late June 2004.
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SOFAZ 2010 budget
amended. The 2010 budget of the State Oil Fund of the Republic of
Azerbaijan (SOFAZ) was amended. |
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State Budget of Azerbaijan for 2011 Ratified
The budget revenues are confirmed on the level of 15 billion 76 million USD (AZN 12,061,000), growth 4.8%, expenses on the level of 15 billion 935 million USD (AZN 12,748,000, growth 3.5%, (including centralized revenues-AZN 11,613,958,200, local revenues-AZN 447,041,800; centralized expenses made up AZN 11,439,980,000, and local expenses made up AZN 1,308,020,000), reported.
According to the budget document the GDP will be increased by 3.8%, its per head sum by 2.7%, average monthly salary by 5.7%, paid services by 10.2% compared with a year ago. The currency reserves rose AZN 6.1 bln to AZN 26.5 bln. AZN 5.2 bln capital was invested in Azerbaijan’s economy in 2010. Base price of oil for a barrel planned to be $ 60 inflation 5%.
Note; 1 USD= 0.80 AZN
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SOCAR ships 191m barrels of profit oil in ten months of 2010
In ten months of 2010 the State Oil Company of Azerbaijan shipped 191m barrels of profit oil, according to sources in the company.
The sources also said profit oil of Azerbaijan made up 183.5m and the profit oil of SOCAR accounted for the rest 7.5m barrels.
SOCAR exports oil by four routes: Baku-Novorossiysk, Baku-Tbilisi-Ceyhan, Baku-Batumi and Baku-Supsa.
The profit oil is distributed among the shareholders of the project depending on their share in the development of Azeri-Chirag-Guneshli fields.
News.Az
Gas pipelines transport 14.5bn cu m of gas in January-October
Gas pipelines in Azerbaijan shipped 14.5 billion cubic meters in the past ten months, an increate of 9.9% year-on-year.
The Baku-Tbilisi-Erzerum pipeline hauled 30.2% of the overall gas transported.
AzerTAj
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Azerbaijani leader approves draft law on Investment Funds
Azerbaijani President Ilham Aliyev adopted the draft law on Investment Funds.
The draft law contained 11 chapters, covers types of investment funds, their operating principles, relations wit investors, control mechanisms on funds, investment instruments, licencing and other issues.
According to document, the investment funds may be established as joint-stock investment fund and shared fund. Joint-stock investment fund’s status is legal entity, is established as OJSC and operates based on licence. The capital of this fund is formed by revenues from sales of share.
Shared investment fund has not legal entity status and they are established as open, interval and closed funds. Its capital is formed by revenue from sale of investment fund shares. Note that, a decision on establishment of shared funds is adopted by manager.
Thus, the manager owning relevant licence establishes shared investment fund and manages it. The main difference of these funds are that, the buying rules of shares back are conducted on announcement and accounting of current worth of fund’s assets.
According to draft law, the fund’s assets may be contained moneys, securities and real estates. |
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Turkmenistan upbeat on Trans-Caspian gas pipeline
The possibility of the transit of Turkmen gas to European markets via a Trans-Caspian pipeline to Azerbaijan is to be discussed later this week.
An unnamed source in the Azerbaijani government told ABC.az said that the pipeline would be discussed at the Azerbaijan-Turkmenistan intergovernmental commission on economic cooperation due to be held in Baku on 25 November.
Although talks on Turkmen gas transit through Azerbaijan have been conducted, no official agreements have been signed yet.
"Today we have a possibility not only of finishing the negotiations, but also of starting work to ensure such transit," the government source told ABC.az.
"We see no reasons that could adversely affect the project. Russia’s position on the Trans-Caspian pipeline does not pose a threat either, as there are also other forces," the source said.
The Azerbaijani government source's expressed lack of concern at Russian opposition to the Trans-Caspian pipeline was echoed by Turkmenistan's first deputy prime minister, Baymurad Khojamuhamedow, last week.
He said that Turkmenistan would be ready to provide some 40 billion cubic metres of natural gas to the Nabucco pipeline project to pump gas from the Caspian region to Europe.
Speaking at the Oil and Gas Turkmenistan-2010 forum, Khojamuhamedow said that agreement would be reached on constructing the Trans-Caspian pipeline to link up with feeder pipelines to Nabucco on the Azerbaijani side of the Caspian.
Taking into account domestic consumption in the west of the country and gas supplies from there to Iran, Turkmenistan will have up to 40bn cu.m of gas annually, so European countries need have no worries about gas shortages, Khojamuhamedow said, according to ABC.az.
"At the Caspian littoral states’ summit in Baku Turkmen President Gurbanguly Berdimuhamedow suggested that any two of the five countries having access to the Caspian Sea could with mutual consent lay subsea pipelines, and most of the littoral states supported him. It is very good news for us that others supported the initiative too. This corresponds to the policy of diversification of sales markets for Turkmen natural gas, and we are putting those plans into action in an orderly fashion," Khojamuhamedow said.
He added that Malaysia’s Petronas would supply 5bn cu.m. of gas from a Turkmen offshore bloc in 2011, but this gas had simply nowhere to go. Petronas could also double production in a few years.
"Turkmenistan is also building the East-West gas pipeline with a capacity of 30bn cu.m for gas supplies to the West,” Khojamuhamedow said.
News.Az
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Nabucco consortium upbeat on progress
Reinhard Mitschek, managing director of the Nabucco gas pipeline consortium, has said the first gas should flow to Europe in 2015.
“Nabucco’s progress has been very positive so far," Reinhard Mitschek said in a statement today.
"This year saw the start of the Environmental & Social Impact Assessment with the first round of public hearings; a mandate letter was signed with the EIB, EBRD and IFC and starts the appraisal process for a potential financing of up to four billion euros; and we finalized the prequalification process for suppliers of long-lead items," Mitschek said.
He was optimistic about the timescale for Nabucco too.
"The Final Investment Decision is expected to be taken in 2011 and we expect construction to start in 2012, first gas to flow in 2015, depending on the availability of sources. Nabucco will have a technical transport capacity of 31 billion cubic metres per year. We expect considerable quantities from Azerbaijan, Turkmenistan and Iraq.”
The statement made no mention of criticism over the failure to secure guaranteed sources of gas for the pipeline so far.
"Each day that passes is to the disadvantage of the project,” Turkish Prime Minister Recep Tayyip Erdogan said at the end of September.
The consortium describes Nabucco as "the new gas bridge from Asia to Europe".
It will directly connect the world’s richest gas regions - the Caspian region and the Middle East - to the European consumer markets. The pipeline will link the Eastern border of Turkey to Baumgarten in Austria - one of the most important gas turntables in Central Europe - via Bulgaria, Romania and Hungary.
News.Az
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Azerbaijan to export nearly 8bn cubic metres of gas in 2010
Azerbaijan expects to export 7.4bn cubic metres of gas to Russia, Georgia and Turkey this year.
The head of SOCAR's Gas Export Department, Kamal Abbasov, said that 1bn cu.m of gas would be exported to Russia, 1.4bn to Georgia and about 5bn to Turkey this year.
Azerbaijan also exports some 800,000 cu.m of gas to Iran for supply to the Azerbaijani exclave of Nakhchivan as part of a swap arrangement and 1.2 million cu.m of gas for Iran's own use.
Kamal Abbasov said that talks were continuing with Iran on increasing gas supplies.
"The talks on signing an agreement will speed up once work is complete on expanding the gas compressor station at Astara," Abbasov said.
He said that work was under way to increase pressure on the gas pipeline from Gazi Magomed in Azerbaijan to Mozdok in the Russian North Caucasus to allow for an increase in exports.
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Azerbaijan implements
WTO
recommendation
to
establish
data
center
A new
data
center established
in
accordance
with
the
requirements
of
Azerbaijan's
accession
to
the World
Trade
Organization
(WTO) was
unveiled
Wednesday
by
the
Azerbaijani
State Standardization, Metrology and
Patents
Committee.
"One
of
the
main
arrangements
between
Azerbaijan
and
the
WTO
is
fulfillment
of
the Agreement
on
Technical
Barriers
to
Trade.
It
involves
bringing
the
areas
of
accreditation,
standardization
and
metrology
in
the
country
in
accordance
with
international
standards,"
the
head
of
the
Technical
Regulation
and
Standardization
Department
head
of
the
committee,
Sabig
Abdullayev,
said
Wednesday.
"One
requirement
is
the
establishment
of
an
appropriate
data
center."
He
said
every
producer,
exporter
or
importer
may
apply
to
the
center
for
information
about
standards,
technical
rules,
and
regulations,
both
in
Azerbaijan
and
WTO
member
countries.
"Information
obtained
at
the
center
can
have
a
direct
impact
on
import
and
export
operations
and
economic
relations
among
the
countries,"
Abdullayev
said.
Azerbaijan
will
start
to
implement
the
WTO
Code
of
rules
for
developing,
drafting
and
adoption
of
standards,
technical
regulations
and
standards
from
Jan.
1,
2011,
which
is
also
one
of
the
requirements
of
the
organization,
Abdullayev
added.
The
data
center
was
established
by
representatives
of
the
State
Standardization,
Metrology
and
Patents
Committee,
Deutsche
Technical
Society
(GTZ)
and
the
U.S. Agency
for
International
Development (USAID),
Abdullayev
said.
Representatives
of
the
State
Committee,
the
Ministries
of
Economic
Development
and Foreign
Affairs,
GTZ,
and
a
representative
of
the
German
Embassy
in
Azerbaijan,
Peter
Ziegler,
attended
the
presentation
where
the
data
center
was
unveiled.
Source;
Trend.
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Banks consider
4bn euros for
Nabucco gas
pipeline
Plans for the
giant Nabucco
gas pipeline to
bring Central
Asian gas to Europe took
a step forward
on Monday, when
the consortium
announced the
involvement of
three international
financial
institutions.
The $10 billion
project aims to
help wean Europe
off its
dependency on
Russian gas by
transporting up
to 31 billion
cubic metres of
gas a year from
the Caspian
region to an
Austrian gas hub
via Turkey and
eastern Europe.
The Nabucco
consortium said
it had signed an
agreement with
the European
Investment Bank (EIB),
the European
Bank for
Reconstruction
and Development and
the World
Bank's
International
Finance
Corporation,
whereby the
three banks will
start due
diligence for
loans that could
reach 4 billion
euros ($5.2
billion).
"We are at the
beginning of the
appraisal
process - it is
not
predetermined,"
EIB executive
Thomas Barrett
told reporters.
"But the fact we
are ready to
identify a
potential 4
billion euros
can be taken as
a very serious
remark."
The European
Commission,
which also plans
to grant up to
200 million
euros to the
project,
welcomed the
move and said
the pipeline
will help
bolster Europe's
energy security.
This year is
seen as critical
for Nabucco,
which faces
tough
competition from Russia's
planned South
Stream pipeline
via the Black
Sea, and from
two much cheaper
European
projects to
import gas via
Turkey - the Trans-Adriatic
Pipeline and
ITGI.
Other challenges
are continuing
weak European
gas demand due
to the economic
crisis,
and increasing
competition with
China for
Central Asian
supplies.
Appraisal
Appraisal
process of the
Nabucco gas
pipeline project
was launched by
the signing of a
mandate letter
by the
International
Financial
Institutions -
the shareholders
of Nabucco Gas
Pipeline
International
GmbH.
The signing of
the mandate
letter is a
required step
towards a
potential
financing
package of up to
4bn euros,
Nabucco Gas
Pipeline company
reported.
The letter was
signed by the
European Bank
for
Reconstruction
and Development
(EBRD), the
European
Investment Bank
(EIB) and International
finance
Corporation (IFC),
a member of the World
Bank Group.
The potential
financing
package will
include up to
2bn euros from
the EIB, 1.2bn
euros from the
EBRD (600mln
euros from EBRD
account and
600mln euros to
be syndicated to commercial
banks)
and around
800mln from IFC
(400mln euros
from IFC account
and 400mln euros
to be syndicated
to commercial
banks).
The Nabucco gas
pipeline project
is the flagship
project for
meeting future
EU gas demand
and will
diversify
Europe's pool of
supplier
countries.
The involvement
of the three
international
financial
institutions is
a demonstration
of global and
European support
for the project
and represents
an important
milestone in
ensuring the
overall
financing of
Nabucco.
The early
involvement of
the financial
institutions
will support
Nabucco in
meeting the
highest
standards in
environmental
and social risk
evaluation and
procurement. The
appraisal of the
project will
include a
thorough
assessment of
commercial,
social and
environmental
aspects.
Following the
successful
conclusion of
the appraisal,
the financing
will need to be
approved by the
relevant
governing bodies
of all
international
financial
institutions. Export
credit agencies and international
banks are
expected to
commence their
appraisal of the
Nabucco project
soon after the
international
financial
institutions.
Commitments from
potential
lenders are
expected to be
sought in 2011.
Political
support
Nabucco
shareholder RWE
of Germany, said
the agreement
with the banks
was proof of
strong political
support for the
project.
"It is another
clear signal to
supplier
countries that
Nabucco has the
full political
support of
Europe and the
international
community," said
Stefan Judisch,
chief executive
of RWE Supply &
Trading.
The final investment
decision by
Nabucco's
backers will be
made in the
first quarter of
next year,
another
shareholder
Austria's OMV
said recently.
Nabucco Managing
Director
Reinhard
Mitschek said it
might take
longer for all
the elements to
fall into place.
Nabucco's gas
transport
contracts could
be negotiated
quickly once gas
buyers and
suppliers have
completed their
negotiations, he
said. The banks
are expected to
make their
decision
sometime in
2011.
"I'm confident
we'll close the
whole financing
package in Q3 or
Q4," he told
Reuters. "In
2012, we'd start
construction and
in 2015 the
first gas would
flow."
Construction of
the Nabucco
pipeline will
be implemented
in two main
phases. The
first phase of
construction
(2011) includes
laying a new
pipeline with a
length of 2,000
kilometers,
starting at the
Turkish border
and ending in
Austria's
Baumgarten. The
second phase
(2014-2015)
includes the
construction of
the remainder of
the pipeline on
the border
between Turkey
and Georgia, as
well as Turkey
and Iraq.
The first gas
supplies via the
Nabucco pipeline
are planned in
2014. Maximum
pipeline
capacity is
expected to make
up 31 billion
cubic meters per
year.
Nabucco Gas
Pipeline
International
shareholders
will invest 30
percent of total
cost of the
project, the
rest 70 percent
will be paid
owing to loans.
The Nabucco
pipeline project
aims to decrease
the European
Union’s
dependence on
Russian imports
by bringing
Caspian gas to a
hub in Austriavia
the Balkans. The
gas would be
shipped to
Europe via
Turkey,
Bulgaria, Romania and Hungary.
Construction of
Nabucco will
begin in 2011,
as the recent
gas crisis
between Russia
and Ukraine has
convinced
decision-makers
of the need to
speed up the
project.
The project,
worth 7.9
billion euros,
is managed by
the Vienna-based
Nabucco Gas
Pipeline
International.
Partners in the
consortium with
equal stakes of
16.67% are
Austrian OMV,
Hungarian MOL,
Bulgarian
Bulgargaz,
Romanian
Transgaz,
Turkish Botas
and German RWE.
Source; Azernews
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Austria in
talks with Azerbaijan on
gas supplies for
Nabucco
The Austrian
company in the
Nabucco gas
pipeline
consortium, OMV,
is holding talks
with Azerbaijan
on gas supplies
for the planned
pipeline.
The state
secretary at
Austria's Finance
Ministry,
Reinhold Lopatka,
said in Baku
yesterday that
the talks with
Azerbaijan's
state oil
company SOCAR
had already
started.
Austria has a
great interest
in Azerbaijan as
a supplier for
Nabucco, Dow
Jones reported
Lopatka as
saying. "The
state-owned
energy group
SOCAR is in
negotiation with
OMV," he said.
The EU-backed
Nabucco project
aims to pump up
to 31 billion cubic
metres of
gas from the
Caspian region
and Middle
East to Europe,
bypassingRussia.
The consortium
is hoping that
gas from the
second stage of
development of
Azerbaijan's Shah Deniz
field will be
one source for
the pipeline.
Nabucco Chief
Executive Reinhard
Mitschek said in
Baku in June
that,
"Azerbaijan is
one of the most
important
countries in the
issue of gas
supplies for
Nabucco. We
mostly propose
taking gas for
this project
from the second
stage of the
Shah Deniz
field."
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Oil price in 2011
Azerbaijan's state budget
may reach $60 per barrel
The oil price laid in the
state budget may make up $60
per barrel in 2011,
Azerbaijan’s Deputy
Finance Minister Azer Bayramov
told Tuesday.
“According to forecasts of
the Ministry
of Economic Development made
in August, the price of the
oil barrel that can be fixed
in the budget for the next
year will make up $60 per
barrel”, the deputy minister
said.
He noted that currently the
process of preparations of
the 2011 budget forecasts is
at the final stage and the draft
document will
be submitted to the Cabinet
of Ministers in September.
“The final indicators on
budget revenues and expenses
of 2011 are currently at the
stage of discussion”,
Bayramov said.
In the first half of 2010
the factual receipts to the
revenues of the state budget
of Azerbaijan made
up AZN 4,922,700,000 (25% of
GDP), increasing by 1.3%
over the same period of the
last year.
The expenses of the state
budget made up AZN
4,276,700,000 (17.7% of GDP)
dropping by 3.6%. The state
budget proficit in
January-June made up AZN
646,000,000 which is 3.3% of
GDP.
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Azerbaijan increases demand for foreign
currency
The
Central Bank of Azerbaijan declared
information on operations with foreign
cash held in the country in July 2010.
According
to the Central
Bank of
Azerbaijan, last month the population of
the country purchased USD 435,664,900
(USD 406.866.200 in June), GBP1,295,500
(926,100 respectively), as well as EURO
8,155,900 (EURO 144,593,600 in June),
GBP 160,500 (267,900 respectively), EURO
8,155,900 (EURO 10,995,000),
RUR180,301.000 (161,146,700).
The average dollar rate over manat made
up USD0.8042 (USD 0.8043 in June), GBP
1.2334 (1.1907 respectively), EURO –
1.0231 (0.9821), RUR – 0.0260.
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CESD has finished
the Azerbaijani
translation of "Gordon Brown: Wiring a web for
global good"! |
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As a part of our activities, we invite
you to watch one of the most influential
TEDTalks ever by former Prime Minister
of the Great Britain with Azerbaijani
subtitles. This video directly concerns
Civil Society, Economics, Politics, and
Climate change issues .
In this talk former UK Prime Minister
Gordon Brown argues that we're at a
unique moment in history : we can use
today's interconnectedness to develop
our shared global ethic -- and work
together to confront the challenges of
poverty, security, climate change and
the economy.
Britain's former prime minister Gordon
Brown played a key role in shaping the
G20 nations' response to the world's
financial crisis, and was a powerful
advocate for a coordinated global
response to problems such as climate
change, poverty and social justice.
Watch here.
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ADB notes growth of corruption sensibility level in Azerbaijan
According to the bank, the index of corruption sensibility in Azerbaijan has increased a little.
The Asian Development Bank (ADB) noted growth of index of corruption sensibility in Azerbaijan in a report on key indices of Asia and Pacific region for 2010.
According to the bank, the index of corruption sensibility in Azerbaijan has increased a little, but has gone away little from 2 marks as yet. For comparison, it reached almost maximal 10 marks in the leading among the country of region of New Zealand. Sensibility level is higher, corruption level is considered to be lower in the country.
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Georgia
says
will not
sell key
gas
pipeline
TBILISI
–
Georgia
has said
it has
no plans
to sell
part of
a major
gas
pipeline
extending
from Russia to Armenia through
Georgian
territory,
following
earlier
reports
saying
its
government
would
open
bids to
privatize
the
conduit.
Energy
Minister
Alexander
Khetaguri
made the
announcement
after a
government
meeting
on
Saturday.
He did
not
elaborate
but said
Tbilisi
would
not sell
any
pipelines.
Georgia's
parliament
last
month
approved
the
lifting
of a
legal
ban on
the
privatization
of the
North-South
pipeline
that was
previously
listed
as a
"strategic
asset"
that
could
not be
sold.
Georgian
officials
earlier
insisted
that
only a
minority
stake
could be
sold.
But the
potential
sale
nonetheless
sparked
concern
among
some in
Georgia,
who
feared
Russia
could be
a likely
buyer,
and in
Armenia,
who
worried
that
arch-rival Azerbaijan could
purchase
a stake
in the
key
supply
route.
Russian
gas
monopoly Gazprom was
one of
the two
would-be
buyers
of the
pipeline
and had
offered
to pay
$250
million
for the
acquisition.
But
Georgian
officials
set the
price at
as much
as $1
billion,
reports
say.
The
other
potential
buyer
was
Azerbaijan’s
state
energy
firm
SOCAR.
The
company
reportedly
announced
it was
ready to
pay $500
million
to
purchase
the
stake.
SOCAR
President
Rovnag
Abdullayev
told the
press
last
week
that his
company
was
interested
in all
energy
projects
in Georgia,
including
the
Georgian
section
of the
Russia-Armenia
pipeline.
Some
Baku-based
experts
say
Azerbaijan’s
proposal
had
prompted
Tbilisi
to alter
its
decision.
Vugar
Bayramov,
head of
the
Center
for
Economic
and
Social
Development,
said
that by
trying
to buy
the
pipeline
stake
Azerbaijan
sought
to gain
a
strategic
leverage
of
influence
over
Armenia,
its
long-time
foe.
This
does not
mean,
however,
that the
Azerbaijani
company
would
have
halted
gas
supplies
to the
country
any
time.
“This
issue
would
have
probably
been
reflected
in the
package
of
proposals
in some
shape or
form,”
Bayramov
said.
According
to him,
Georgia’s
giving
up its
pipeline
sell-out
plans
was due
to two
reasons.
Initially,
Georgia
bewared
of
Gazprom’s
buying
the
pipeline,
which
would
grant
Russia
an
opportunity
to
influence
Tbilisi.
The
other
reason
is
related
to
Azerbaijan,
the
analyst
suggested.
“The
decision
not to
sell the
pipeline
was
passed
after
the
Azerbaijani
company
stated
its
intention
[to buy
it].
Azerbaijan’s
interest
in the
pipeline
could be
cited as
one of
the
reasons.
Therefore,
European
countries
supposedly
requested
Georgia
not to
sell the
conduit.
Some of
them
think
that
this
could
have
caused a
disruption
of the
balance
[of
powers]
in the
region
and
Azerbaijan’s
dictating
regional
processes.”
Ilham
Shaban,
who
heads
the Oil
Research
Center,
believes
that the
buyer of
the
pipeline
section
would
not have
made
profits
from the
acquisition,
as
Russia
pays a
10
percent
transit
fee for
the gas
it
transports
through
Georgia.
In other
words, Moscow pays
for 170
million
cubic
meters
out of a
total of
1.7
billion
cubic
meters
of gas.
“This
makes up
only
$10-15
million.
At this
cost,
you need
to both
operate
the
pipeline
and pay
taxes…This
doesn’t
look
realistic.”
Shaban
said
that,
moreover,
Georgian
officials
were
issuing
conflicting
statements
about
the
pipeline’s
privatization.
“They
were
saying
that the
pipeline
may be
privatized
in two
to three
years,
then
they
said
that
Georgia
would
retain
the
controlling
stock of
51
percent.
This
alone
was
prompting
a
skeptical
approach
to the
future
of the
project.”
When
Georgia
first
floated
the idea
of
privatizing
the
pipeline
in 2005,
the
United
States
provided 50
million
dollars in
funds
for
urgent
repairs
instead,
in a
move
analysts
said was
aimed at
keeping
it out
of
Russian
hands.
|
|
The
Central
Bank of Azerbaijan left
unchanged
the
monetary
policy
for the
first
six
months
In the
first
six
months
of 2010
the Central
Bank of
the
Republic
of
Azerbaijan conducted
its
policy
under
the
conditions
of slow
recovery
of global
economic
growth and
non-equal
course
with
world
countries,
increase
of
instability
in the
international
financial
and
currency
market,
maintenance
of
favorable
conjuncture
in the
global
oil
market,
stable
growth
dynamics
of the
domestic
economy.
Under
the
conditions
of sharp
volatility
of the
leading
currencies
of the
world
exchange
rate of
manat
against USD has
changed
just
0.04%
and in
general
remained
stable.
Significant
surplus
of the
payment
balance
was the
main
macroeconomic
factor
of the
stability
of manat
against USD.
As
usual,
stability
of theexchange
rate of
manat
prevented
increase
in
inflation,
foreign
debt
burden
of
economic
subjects
and
dollarization
in the
country,
and in
general,
maintenance
of real
cash
incomes
of the
population.
To
support
the
business
activity
and
economic
growth
under
the
conditions
of
current
tends in
the
economic
cycle,
the Central
Bank has
not
changed
parameters
of interest
rate corridor
and
compulsory
reserve
norms,
and
maintained
growth
sources
of money
supply.
Encouragement
policy
of the
reduction
ofinterest
rates on
deposits
was
continued.
Within
six
months
under
these
conditions, money
supply in
manats
has
increased
by 7.5%,
conditions
for the
decrease
tends in
interest
rates
were
created.
Level of
inflation
that
constitutes
one of
the main
purposes
of the
monetary
policy
of the
Central
Bank was
4.9% in
the six
months
of the
current
year
against
the
respective
period
of the
past
year.
To
strengthen
financial
stability
of the
banking
system
within
this
period,
the
Central
Bank has
improved
its
control
and
regulation
frames.
As a
result,
the
banking
system
has
maintained
its
financial
resistance
and
continued
to
develop.
Within
the last
six
months
of 2010
assets
of the
banking
system
has
increased
by 4.4%,
and
credit
portfolio
by 5.2%.
Increase
of the
deposits
of the
population
constituted
9.8%.
Given
the
abovementioned
as well
as the
macroeconomic
forecasts,
Management
Board of
the
Central
Bank
considered
it
reasonable
to leave
rates,
parameters
of the
interest
rate
corridor
and
compulsory
reserve
norms
unchanged,
and
continuation
of the
policy
aimed at
the
maintenance
of
stability
of manat.
Source;
The
Central
Bank of
Azerbaijan
|
|
SOCAR
Black
Sea port
applies
system
of
oil-polluted
waters
cleaning
The
Black
Sea
terminal
of the
State
Oil
Company
of Azerbaijan continues
developing
its own
nature
protection
systems
in
Georgian
Kulevi.
According
to
sources
in BST,
cleaning
facilities
INSTEB
have
been
installed
on the
terminal
for
cleaning
oil-filled
waters,
whose
appearance
is
inevitable
in oil
industry.
“The
system
famous
as a
completed
regenerator
of
polluted
liquids
is
widely
applied
in oil
industry.
She
justified
the
practice
and has
become
reliable
after
commissioning
and
fulfills
the
functions
in line
with
international
standards
and BST
policy
on
health,
security
and
environment,
working
without
any
failures
and
difficulties”,
the
statement
says.
The
facility
carries
out the
consistent
cleaning
and
decontamination
of oil
containing
water,
passing
the
polluted
materials
via sand
and coal
filter
and
includes
a number
of
processes.
The
first
stage is
an
oil-filtering
facility
intended
for
extraction
of oil
and oil
products
and
their
residential
from
industrial
and rain
waters
and the
cleaning
of
concentration
of these
residuals
to
accepted
limits.
The main
characteristic
feature
of this
facility,
that is
the
productivity
reaches
20cubic
meters
per
hour.
The
second
phase is
the
three-stage
filter
intended
for
double
cleaning
(processing)
of
oil-containing
water.
The
content
of
compositions
in
cleaned
water
after
filters
does not
exceed
the
established
norms
and is
as
follows
for
every
milligrams
of
water:
balanced
particles
– 3mg/l,
oxygen-5
mg/l,
oil
products
–
0.1mg/l,
superficial
acoustic
wave-from
0.5 mg/l
to 1.8
mg/l,
hydrocarbon
indicator
from 6
to 8
units.
|
|
Azerbaijan
cuts oil
products
export
Azerbaijan reduced
both the
export and
import of
oil products
in the
first seven
months of
the year,
compared to
the
equivalent
period in
2009.
In January
to July,
Azerbaijan
exported 1.3
million
tonnes of
oil products
for $737.660
million,
17.03% less
than in
2009,
according to
figures from
the State
Customs
Committee.
In July,
Azerbaijan
exported
230,543
tonnes of
oil products
for $118.048
million, a
significant
increase on
June's
export of
168,940
tonnes for
$95.5
million.
In 2009,
Azerbaijan
exported
3.095
million
tonnes of
oil products
for $1.48bn
(10.09% of
the
country’s
overall
exports).
In January
to July,
SOCAR's
Department
of Marketing
& Economic
Operations
exported
1.097
million
tonnes
(83.02%)
of petroleum
products,
the firm
Ilqar 97,926
tonnes
(7.41%), the
Azneftyag
refinery
52,155
tonnes
(3.95%),
and Azerbaijani Airlines
AZAL Oil
joint-stock
company
38,374
tonnes
(2.9%).
Crude oil,
rather than
petroleum or
other
refined
products,
makes up the
vast
majority of
Azerbaijan's
exports.
Azerbaijan
exported
15.303
million
tonnes of
crude oil
for $8.787bn
in the first
six months
of 2010.
In January
to July,
Azerbaijan
imported
23,630
tonnes of
petroleum
products for
$33.264
million,
less than
half the
imports in
the same
period last
year (59,636
tonnes for
$54.353m).
Oil products
accounted
for only
0.95% of
overall
imports in
the
first six
months of
the year,
according to
figures from
the State
Customs
Committee.
Azerbaijan
has not
imported
oil, gas or
other gas
hydrocarbons
in 2010. The
last year in
which it
imported oil
and gas was
2007.
In January
to July,
Azerbaijan's
total
foreign
trade was
$15.516bn,
including
imports of
$3.507bn and
exports of
$12.008bn.
|
Azeri
currency
reserves
hit
18-month
high
BAKU -
The
currency
reserves
of
Azerbaijan’s
Central
Bank have
increased,
reaching
an
18-month
high of
over
$5.658
billion
in July.
The
figure
hit a
$187.8
million
rise
last
month.
In June,
the
currency
reserves
exceeded
$5.470bn,
according
to the
bank.
The
reserves
increased
$871.5m,
or 18.2
percent
in July,
in
comparison
with the
same
period
of 2009.
Last
July,
the
indicator
stood at
$4.787bn.
Expert
Vugar
Bayramov
says Azerbaijan’s
currency
reserves
could be
considered
satisfactory
compared
to those
of other
CIS
states.
He noted
that
Georgia’s
reserves
make up
$2bn,
while inArmenia the
figure
is just
above
$1bn. Ukraine’s
cash
stocks
amount
to
$25.5bn,
while Kazakhstan’s
currency
amounts
to
$27.3bn. Russia has
a
staggering
amount
of
currency
reserves
worth
around
$475bn.
Bayramov
said
that
currency
reserves
of all
CIS
states
grew in
July.
Russia
posted
an
increase
of
$5.4bn
compared
to June,
while
Kazakhstan’s
cash
stocks
grew
$1.2bn,
and
Ukraine’s
reserves
rose
$1.4bn.
“The
increase
in CIS
countries’
currency
reserves
was
directly
linked
to the
rising
rate of
the euro
against
the
dollar,”
the
analyst
concluded.
|
|
CBA
spends $599m
on foreign
currency
sterilization
Thanks to
that, US
currency
exchange
rate has
even
strengthened
by 0.04%.
According to
the
recently-published
financial
report for
the first
half of
2010, the
Central Bank
of
Azerbaijan
got rid of
the
necessity of
spending
reserves to
maintain
national
currency
rate that
pursued the
Bank during
entire 2009.
According to
the CBA, in
the first
half of the
year it
spent $598.5
million on
sterilization
of
additional
currency
demand.
Thanks to
that, US
currency
exchange
rate has
even
strengthened
by 0.04%.
Last year
$1.26
million was
directed to
maintain
exchange
rate of
manat, and
in 2008 the
volume of
sterilization
of foreign
currency
amounted to
$2.2 bn. |
|
Central Bank
forecasts
single-digit
inflation
this year
The
Central
Bank of
Azerbaijan
has
reviewed
the
first
half-year
and does
not
expect
inflation
to move
into double
figures in
2010.
Inflation
will be
somewhere
between
4.5% and
7% by
the end
of the
year,
the Central
Bank said.
Inflation
in the
first
six
months
of the
year was
4.9%.
The
Central
Bank
calculates
that
this was
43.3%
down to
external
factors,
27.4%
to exchange
rates,
29% to
the money
supply and
0.3% to
seasonal
factors.
"The
average
annual
inflation
rate
according
to the
figures
for the
first
half of
the year
was
4.9%; of
this,
2.6% is
related
to the
rise in
food
prices,
1.4% to
the rise
in
non-food
prices
and 0.9%
to
services,"
the bank
says.
|
|
SOFAZ
Revenue and
Expenditure
Statement
for
January-June
2010
(non-audited)
Budget
revenues of
the State
Oil Fund of
the Republic
of
Azerbaijan (SOFAZ)
for the
period of
January-June,
2010 reached
6 101.2
million
manats,
while budget
expenditures
constituted
2 630.2 mln.
manats.
Revenue of
6 089.3 mln.
manats was
received
from
implementation
of oil and
gas
agreements,
including
6 000.1 mln.
manats from
the sale of
profit oil
and gas,
83.2 mln.
manats from
State share
in theHeydar
Aliyev Baku-Tbilisi-Ceyhan
(BTC) Main
Export
Pipeline,
4.3 mln.
manats as
transit
payments,
0.9 mln.
manats from
sale of
assets
received
from foreign
companies
and 0.8 mln.
manats as
acreage
payments.
The revenues
from
managing
assets of
the Fund for
the
reporting
period
amounted to
11.9 mln.
manats.
As per 2010
budget of
the Fund,
2 455.0 mln.
manats were
transferred
to the state
budget. The
expenditures
in the
amount of
34.0 mln.
manats were
directed to
financing of
improvement
of social
condition of
refugees and
internally
displaced
persons,
74.8 mln.
manats and
53.0 mln.
manats were
accordingly
used for
financing
the
reconstruction
of the
Samur-Absheron irrigation
system and
financing
construction
of the
Oghuz-Gabala-Baku water
supply
system.
1.5 mln.
manats were
directed to
financing
Baku-Tbilisi-Kars
railway and
2.8 mln.
manats to
financing
"The state
program on
the
education of
Azerbaijan
youth abroad
in the years
2007-2015".
The Fund's
administrative
and operational
expenses in
this period
were 9.1 mln.
manats.
The Fund's
extra-budgetary
expenditures
related to
the
revaluation
of foreign
exchange
totalled
869.1
million
manats.
The assets
of SOFAZ as
at July 1,
2010 has
grown by
21.6 %
compared to
the
beginning of
2010 (USD 14
900.4 mln.)
and stood at
USD 18 122.3
mln.
Note; 1 USD
= 0,83 Manat |
|
SOCAR increases
transfers to state
budget
The State Oil
Company of Azerbaijan transferred
AZN 88,927,000 to
the state budget in
July.
According to SOCAR,
the January-July
transfers to the
state budget made up
AZN 602,899 which is
by AZN 106,463,000
or 121.4% higher as
compared to the
volume of transfers
in the same period
of the last year.
In addition, the
July transfers of
SOCAR to the State
Fund of Protection
of the Population of
Azerbaijan amounted
to AZN 11,856,000,
which is by AZN
3,284,000 or 138.3%
higher than the
volume of transfers
in July 2009.
On the whole, within
seven months the
SOCAR transfers to
the State Fund of
Social Protection
made up AZN
73,113,000 which is
by AZN 11,718,000 or
119.1% higher as
compared to the same
period of the last
year.
|
SOCAR
commissions new well
on offshore field
The State Oil
Company of Azerbaijan has
completed drilling
new well No 2271
from offshore
stationary platform
No 1887 at the Oil
Rocks field
According to a statement in the company, the well has been drilled at a
depth of 2590
meters. Currently,
the daily output of
the well is 65 tons
of oil. The well was
drilled by the trust
of complex drilling
works Bail Limany.
The Oil Rocks field
has been developed
since 1949. 173m
tons of oil have
been produced
through the whole
period of operation
of the Oil Rocks and
Grazevaya sopka
fields. By the
recent estimates,
the residual field
reserves are about
30m tons which is
equal to a new field
by the current
international
criteria.
|
|
Azerbaijan -
Turkmenistan agree on zero quota
of sturgeon caviar export in
2010
The quota year for export of
caviar and sturgeon meat runs
from 1 March 2010 to 28 February
2011.
The Secretariat of the Convention on International
Trade in Endangered
Species of
Wild Fauna and Flora (CITES) has
published today the export
quotas for caviar and other
sturgeon products agreed by the
Caspian States for 2010.
The Secretariat informs that the
2010 quotas were agreed by
Azerbaijan, the Islamic Republic
of Iran, Kazakhstan,
the Russian Federation and
Turkmenistan during a meeting
held in Tehran.
The quota year for export of
caviar and sturgeon meat runs
from 1 March 2010 to 28 February
2011. The quantities that can be
exported are lower than in 2008,
when export quotas were last
published.
“The CITES quota
system has
resulted in the five Caspian
Sea States agreeing
on common management objectives,
as part of a concerted response
to improve the state of depleted
stocks. The setting of these
export quotas once again
demonstrates the value of CITES
in addressing conservation and sustainable
use of
biodiversity in an effective and
practical manner,” CITES
secretary-general John Scanlon
said.
The countries that share the
Black Sea and Lower Danube
sturgeon populations (Bulgaria, Romania and Serbia)
and the Heilongjiang/Amur River
population (China and the
Russian Federation) have not yet
informed the CITES Secretariat
about their quotas for this
year.
In 2009, the lack of agreement
between the five Caspian
countries resulted in a
suspension of wild caviar
imports from those countries.
|
|
Azerbaijan, Egypt
eye joint gas projects
Azerbaijani Minister
of Industry and
Energy Natig
Aliyev held
talks with Egyptian
Petroleum Minister Sameh Fahmy Wednesday,
the Azeri-Press Agency reported.
Fahmy and Aliyev, former president of the
State Oil Company of Azerbaijan,
discussed the possibility of marketing Azeri
gas through existing pipelines in Egypt,
the North African country’s Oil Ministry
said in a faxed statement, according to
Bloomberg.
The two also discussed a proposal regarding
the refining of Azeri crude in Egyptian
refineries and its transport from Egypt to
African and Asian markets, according to the
ministry.
Fahmy said that the two countries may also
collaborate on exploration ventures and in
technology and knowledge sharing in the oil
and gas sect
|
|
Proven natural
gas reserves amount
to 2.2 trillion cu m
Azerbaijan’s natural gas reserves to be
sufficient for 100 years.
Azerbaijan's natural gas reserves will be
sufficient for 100 years, Azerbaijan`s Minister
of Industry and
Energy Natig
Aliyev said
in an interview with the Athens newspaper
Ethnos.
Trend reports that Turkey’s Anatolia news
agency provided this information on Sunday.
"The proven
oil reserves amount
to 1,5 bn tons and natural gas 2.2 trillion
cubic meters. Annual oil production in
Azerbaijan is 50m tons. This means that if
new deposits are not found, oil will end in
about 30 years. However, when talking about
reserves, we take into account the
capacities of modern technology. The
opportunity to increase oil production grows
with the development of technologies. As for
natural gas, if we do not find new deposits,
existing reserves will be sufficient for at
least a hundred years. Companies such as BP,
Total and Statoil are working on finding new
deposits", Natig Aliyev said.
The minister said that this year's
production of oil and gas will increase.
"This year, oil production will increase
from 50m tons to 52.5m, and natural gas from
23.3 bn cubic meters to 28.5bn", Minister of
Industry and Energy Natig Aliyev said.
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Oil, gas
production up in Azerbaijan
Azerbaijan increased gas production in the
first half-year by 9.9% and oil production
by 2.1%
A total of 13.148bn
cubic metres of natural
gas, including
associated gas, were produced in January to
June. This constituted a 9.9% increase on
last year, according to figures from
the State Statistical Committee.
The BP-led Azerbaijani International Operating
Comany (AIOC) produced 5.3bn cu.m of natural gas
from the Shah Deniz field and of associated gas
fromAzeri-Chirag-Guneshli,
4% down on last year.
A total of 8.531bn cu.m of all the gas
produced was commercial grade.
In 2009, Azerbaijan produced 23.584bn cu.m
of natural gas, including associated gas, which
was 0.8% up on 2008. Of that volume, 10.1bn cu.m
were Shah Deniz gas and Azeri-Chirag-Guneshli
associated gas.
In the first half of 2010
Azerbaijan produced 25.332m tonnes of oil,
2.1% more than in the first half of 2009.
The AIOC, developing the Azeri-Chirag-Guneshli
field, accounted for 21.1m tonnes of
production, including condensate from Shah
Deniz. This was a 2.8% increase on last
year.
The state oil company, SOCAR, produced
4.232m tonnes of oil in the reporting
period.
In 2009, Azerbaijan produced 50.376m tonnes
of oil, which was 13.5% more than in 2008.
The AIOC accounted for 41.9m tonnes,
including condensate from Shah Deniz.
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BTC to export 23.85m barrels of oil in August
In 2009 the BTC pipeline exported 36.2m tons of
oil.
There is a plan to export 23.85m barrels (3.13m
tons) of oil from the Azeri-Chirag-Guneshli
fields by the BTC pipeline in August, according
to sources in the State Oil Company of
Azerbaijan.
The sources noted that Azerbaijan’s profit oil
will make up 18m barrels (2.36m tons) of the
overall volume of export of June oil.
In 2009 the BTC pipeline exported 36.2m tons of
oil. On the whole, it pumped 106.5m tons of oil
as at 1 January.
The shareholders of the BTC CO pipeline company
are BP (30.1%), SOCAR (25%), Chevron (8.9%),
Statoil (8.71%), TPAO (6.53%), Itochu (3.4%),
Amerada Hess (2.36%), ENI (5%), ConocoPhilliрs
(2.5%), Inрex (2.5%), Total (5%). |
Germany to
invest in alternative
energy development in Azerbaijan
German
representatives are interested in investing
in the sphere of alternative and recoverable
energy sources.
Germany is
interested in investing in Azerbaijan's
economy, said Wolfgang Eigner, expert of the
German Technical Cooperation Association (GTZ)
during a news conference on the visit of
Azerbaijani delegation to Germany.
He said German representatives are
interested in investing in the sphere of
alternative and recoverable energy sources.
'An agreement to intensify cooperation of
the entrepreneurs of Azerbaijan and Germany,
investing in Azerbaijan, in particular, in alternative
energy has
been reached within the framework of the
visit', Eigner said.
The Germany visit of the Azerbaijani
delegation including entrepreneurs engaged
in the sphere of tourism and recoverable
energy sources, along with representatives
of the Azerbaijan Export and Investments
Promotion Foundation, Tourism Institute of
Azerbaijan, State Agency on Alternative and
Recoverable Energy Sources in Azerbaijan's
Ministry of Industry and Energy
was held on June 20-29.
The visit was organized by the Program of
support to private sector, Azerbaijan's Economic
Development Ministry, Azpromo,
Azerbaijan Investment
Companyand Tourism Institute of
Azerbaijan. The delegation participants have
familiarized with the tourism potential of
South Germany (Baden-Vurtemberg, Bavarian,
south part of Gessen and so on) and
experience in tourism sector.
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Azerbaijan supplies
over 428m cubic meters of gas to Russia
Since the beginning of the year the State Oil Company of
Azerbaijan has exported 428,213,000 cubic meters of
natural gas to Russia.
According to sources in SOCAR, supplies to Russia were
81,539,000 cubic meters in June. Thus, the average daily
gas supplies to Russia amounted to 2.29m cubic meters in
January-May. Azerbaijan started gas export to Russia on
1 January 2010. Earlier it was planned to supply 500m
cubic meters of gas to Russia in 2010 but later this
volume was doubled.
The agreement on supplies of Azerbaijani gas to Russia
was signed on 29 June 2009 during the visit of the
Russian delegation headed by Russian President Dmitri
Medvedev to Baku.
The document which fixed the main terms of Azerbaijani
natural gas purchase was signed by Gazprom chairman
Alexei Miller and SOCAR president Rovnag Abdullayev by
results of the talks between Russian President Dmitri
Medvedev and Azerbaijani leader Ilham Aliyev
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Will the Norwegian Model Work for Azerbaijan?
Speaker: Professor Alan Riley
Date: Monday, June 28, 2010
Time: 6:30pm - 9:00pm
Location: The City
Law School, Atkin Building Gray's Inn, London,
WC1R 5AT
Fear of the "resource curse" plagues the policy-makers of
all energy-rich states, with very few remaining unaffected.
The curse usually exhibits three main characteristics. The
"Dutch curse" refers to the way in which the energy
industry crowds
out all other development, making the country permanently
dependent on its energy resources. This is followed by
massive capital and expenditure misallocation caused by the
energy resources, with myriad "white
elephant" prestige projects dotting the landscape, but no
real development. The final aspect is endemic corruption.
The one state that has managed to avoid the resource curse
in all forms is Norway.
This nation has carefully ensured that the economy is not
dominated by the energy industry, enabling other sectors to
flourish. Its sovereign wealth fund is amongst the most
expertly managed in the world, providing a diversified asset
base to provide for the future. The conditions applied to
state investment have rigorously reduced "white elephant"
expenditure, and corruption
remains non-existent. Transparency
International ranked
Norway as the 11th most corruption-free nation on earth (out
of 180).
Like Norway, Azerbaijan has extensive energy resources and a
relatively small population. Can (or should) Azerbaijan seek
to replicate the Norwegian model? The government in Baku has
taken the Norwegian model into account when developing its
Oil Fund. In order to negate the resource curse, other
potential lessons need to be borne in mind.
However, it must be understood that Azerbaijan is not
Norway. For example, that nation could rely on developing
its non-oil resource sector around the geographic reality of
the EU on its doorstep and its access to the EU single
market through
the European
Economic Area
agreement. Nonetheless, exploring the
Norwegian model provides some insights and ideas for methods
by which Azerbaijan may build its institutions, society and
economy to derive greater benefits and reduce the burden of
its energy resources.
Professor Alan Riley has written extensively on EU and
Russian energy markets. He principally focuses on the
interaction of energy liberalisation and its impact on energy
security. His recent papers include EU-Energy
Liberalisation - Coming to a Member State Near YYouu (2008),
(Competition
Law Review);
De-Weaponising the Energy Weapon
(2009), (House
of Commons Defence Select Committee); Can
Nordstream and Southstream Survive in a Changing Gas Market?
(2009), (OGEL Special Issue EU-Russia Relations); The Yukos
Decision: Profound Implications for the EU-Russia Energy
Relationship? (2009), CEPS
Brussels. He is currently writing a book on energy
security and market liberalisation.
Professor Riley holds a PhD from the Europa Institute at
Edinburgh University, and is a Solicitor of the Supreme
Court of
England & Wales.
The City Law School, Atkin Building
Gray's Inn, London, WC1R 5AT
6:30 registration, 7-8pm llecture, 8-9pm reception
networking
RSVP
E-mail : events@teas.eu
T : 0207 104 2225 |
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PA in CE |
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Public Administration Reforms in
Azerbaijan; Training for Civil
Servants |
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Dr. Vugar Bayramov,
Chairman of the Centre for Economic
and Social Development (CESD)
Baku, Azerbaijan
The absence of cohesive
coalitions, working for regional and
international co-operation, limits
the effectiveness of civil society’s
lobbying and advocacy regarding the
accountability of governments and
international agencies. According to
a CIVICUS report, Azerbaijani CSOs
are characterised as being
‘inefficient in achieving their
aims, particularly in increasing
their members’ access to financial
resources and in providing technical
and informational support of their
activities’. Perhaps one of the most
serious challenges facing
Azerbaijani civil society is the
extremely low level of co-operation
between among CSOs in the different
sectors, as well as their weak
international linkages” (R. Sattarov
et al: Civil Society in Azerbaijan:
Challenges and Opportunities in
Transition - CIVICUS Civil Society
Index Report for Azerbaijan, 2007).
Across the country, central and
local gover nments restrict core
civil society freedom of
association, assembly and expression
through repressive legislation and
ideological dominance. Even though
the country’s constitutions and
other major legal acts provide for
the freedom of civil society and
citizen participation, the
mechanisms for the realisation of
this freedom is missing, or is very
basic and unusable. In the country,
civil society remains weak, with
little influence on public policy or
opinion. Partially as a legacy of
the old Soviet regime, the concept
of citizenship -- including the
responsibility of constituent
involvement -- has yet to take root
among much of the population and
therefore lacks the concept of
political will. As for the
socio-cultural context, there are
“relatively low levels of
interpersonal trust and public
spiritedness, representing
significant socio-cultural and
psychological barriers to the
development of a vibrant civil
society” (R. Sattarov, 2007).
Full article available online at
NISPacee website |
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ADB
Approves First Private Sector Infrastructure
Investment in Azerbaijan
MANILA, PHILIPPINES - The Asian
Development Bank (ADB)
is providing EUR20 million to an integrated
cement plant in Azerbaijan to
expand output and improve fuel
efficiency. The loan marks ADB's
first ever private-sector infrastructure
investment in the Central Asian nation.
The loan, approved by ADB's Board of Directors, will help "Garadagh
Cement" Open
Joint Stock Company raise
its cement
production capacity by
around 30% to 1.7 million tons per year. At
the same time, the replacement of the
existing four wet kilns with a single, more
efficient dry kiln will significantly reduce
the plant's fuel
consumption, cut water consumption
and effluent discharge, and bring the plant
in line with international environmental
standards.
Azerbaijan’s economy is one of the fastest growing in the world. Given
sustained commercial construction and the
government's wide-ranging infrastructure
program, "Garadagh Cement" estimates medium-
to long-term demand to grow 5%-8% per year.
With limited domestic
production, Azerbaijan is currently
forced to import much of its clinker and
cement. Clinker is
an intermediate cement product.
"Additional supply of high-quality, locally made cement will help the
government and others complete the
infrastructure needed to boost regional
trade and tourism and diversify the
country's sources of economic growth beyond
the oil and gas sector," said Philip
Erquiaga, Director General of ADB’s Private
Sector Operations Department.
"Garadagh Cement" is majority owned by Switzerland-based Holcim Ltd.
The plant, 35 kilometers from the Azerbaijan
capital of Baku,
is the only integrated clinker and cement
producer in the country. In 2008, the European
Bank for Reconstruction and Development (EBRD),
a minority shareholder in "Garadagh Cement",
was mandated to arrange the loans needed to
help upgrade the plant. ADB’s loan will be
in parallel to EBRD's funding.
"This project represents a key opportunity for ADB to support
Azerbaijan’s infrastructure development in a
way that increases efficiency and brings
valuable energy
savings," said Don Purka, Senior
Investment Specialist of ADB's Private
Sector Operations Department. "At the same
time, it demonstrates the opportunities for
foreign direct investment outside the oil
and gas industry."
The EUR325 million project will be
financed by EUR140 million in senior debt
from the EBRD and ADB, subordinated debt
from Holcim and from the cash flow of "Garadagh
Cement".
A steering committee of "Garadagh Cement" and Holcim officials will
oversee the project, with CBMI Construction
Company, a subsidiary of Sinoma
International, contracted to carry out the
main part of the investment under a turnkey
engineering, procurement, and construction
contract.
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Fitch increases SOCAR's rating
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Rating agency Fitch
Ratings increased
the ratings of SOCAR (State Oil Company of Azerbaijan),
Long-term Issuer Default
Rating (IDR) in foreign exchange from level "BB
+" to "BBB-" and short-term foreign
currency IDR
- with "B" to "F3". The forecast on the
long-term issuer default rating - "Stable",
Fitch said.
The rating increases after the agency increases
a long-term IDR of Azerbaijan in foreign
currency from "BB +" to "BBB-" May 20 this year.
SOCAR is fully state ownership and represents
the state's interests in oil and gas industry,
which is significant for the economy, because
about 60% of GDP falls to the share of
hydrocarbons in Azerbaijan. The company is the
largest taxpayer in the country.
For this reason, Fitch considers legal,
operational and strategic ties between the state
and the company strong. As a result, the agency
appropriates ratings to SOCAR on a par with the
sovereign rating of Azerbaijan, based on its
methodology, "Relationship between ratings of
'Parent and Subsidiary Rating Linkage'.
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Azerbaijan to implement civil society development project
Wed 10 February 2010 | 08:57 GMT
Azerbaijan will
host an international forum of civil society.
The Center for Economic
and Social Development and
the Mediterranean Center of Management under financial
assistance of the European
Commission have
launched the project on development of civil society in
Azerbaijan.
During the news conference, Chairman of the Center of
Economic and Social Development Vugar Bayramli reporting
on the program said the main objective of the project
implemented under support of the Council of State
Support to NGOs under the President of the Azerbaijan
Republic is to assist to the development of civil
society in Azerbaijan, and develop relations between
civil society and governmental structures.
Within the framework of the program the European
Commission experts will hold trainings for
representatives of the civil society, as well as municipal
authorities and
local executive authorities in Baku, Ganja, Shamakhy and
Salyan. The training will last for 18 months. 16
organizations to participate in the project have been
intensified.
Project Manager Sukha Vekil and member of the Council
of State Support to NGOs under the President, Alimammad
Nuriyev, spoke of the peculiarities of the development
of civil society in Azerbaijan and international
experience.
Upon completion of the project there is a plan to hold
the international
civil society forum
in Azerbaijan. The forum will discuss issues of
informing the world of the truth about Azerbaijan, as
well as the development of civil society.
AzerTaj
Democracy Commission Small Grants Program
WINTER 2010 CALL FOR PROPOSALS
The Embassy of the United States of America in Azerbaijan is
announcing the 2010 winter round of the Democracy Commission
Small Grants Program. This program seeks to support
development of Azerbaijan’s democratic institutions and
civil society by awarding on competitive basis small project
grants not to exceed $24,000 to Azerbaijani nonprofit,
nongovernmental organizations (NGOs), nonprofit
community-based organizations (CBOs) and other nonprofit
associations and community groups, as well as independent
local media organizations. The
closing date for applications is December 30, 2009.
What Type of Projects are Funded?
The competition is open to all well-developed and innovative
grassroots initiatives aiming to create open, tolerant and
democratic society, develop pluralistic communities and
fostersocial
responsibility. The
Democracy Commission has chosen to address the following
topics within this call for proposals:
Promoting free and fair democratic elections;
Building civic responsibility and democratic values;
Supporting transparency in public institutions and
anti-corruption;
Development of free and professional media and participatory
journalism;
Advancing collective
responsibility to
protect the environment;
Facilitating conflict
resolution projects
to support lasting peaceful resolution of Nagorno-Karabakh conflict;
Monitoring of human rights violations and advocating for
rights and freedom. Projects NOT funded by the Democracy
Commission include:
Fund-raising campaigns;
Humanitarian assistance projects;
Scientific research projects;
Projects with budgets that exceed $24,000 and take more than
a year to implement;
Projects that duplicate existing projects being implemented
by an organization;
Projects submitted by for profit, commercial organizations;
Projects that aim to support partisan political activity.
How to Apply?
Qualified organizations may apply to the Democracy
Commission no later than December 30, 2009. Please
submit completed application and all supporting
documentation to BakuDemCom@state.gov. Upon
submission application you will receive a confirmation.
Please click the icons below to download the application
form and application guidelines. Please
note that all organizations are required to use the official
Democracy Commission application form to submit their
projects in ENGLISH. Applications
that do not meet minimum standards set forth in application
guidelines will not be considered.
Evaluation Process
U.S. Embassy Baku has formed a Review Committee consisting
of representatives from different U.S. government agencies
and experts from international
donor organizations to
review submitted proposals. The
Committee meets regularly to review qualified applications. Once
the application process is over, it will take up to two
months for the Committee to complete its review process. Some
of the applicants may be invited for an interview during
this review process.
Evaluation Criteria
The Democracy Commission will use the following general
criteria to evaluate all submitted grant proposals:
The project
proposal demonstrates
that the organization has sufficient expertise, skills and
human resources to implement the project;
The organization demonstrates that is has a clear
understanding of the underlying issue that the project is
aiming to address and is able to articulate it without using
excessive generalizations;
The organization has consulted relevant literature, experts
and potential partner organizations during the project’s
design phase;
The organization has identified appropriate beneficiaries or
target groups in a way that maximizes project outputs and
outcomes and the project has a clear focus and manageable
scope;
The project idea and approach is innovative yet proposed
project activities are concrete and detailed and supported
by reasonable work plan;
The project’s budget is well organized, detailed and
reasonable. There
are no budget lines labeled miscellaneous expenses. Entertainment
and alcoholic
beverage expenses
are not included in the budget. The
budget demonstrates that the organization has devoted time
to plan for and assess actual expenses associated with the
project instead of providing rough estimates;
The organization has clearly articulated how it will assess
and measure its own performance throughout the project
implementation phase using concrete quantitative and
qualitative assessment tools;
The project proposal describes clearly the approach that
will be used to ensure maximum sustainability of the
project’s results after its completion.
Download application,
budget
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CRRC Publication
Research Fellowships 2009 Available
Explore issues – handle data – satisfy your curiosity – get
published – generate opportunities
CRRC is offering a new round of research fellowships. Are
you curious about a social science issue? Do you have some
ideas or hypotheses that you want to explore further? This
fellowship could be the perfect opportunity for you!
What issues are we looking to address?
We're looking for social science research that addresses
pressing issues your country faces. The Millennium
Development Goals (click here) constitute one such urgent
research agenda. Other likely issues include child poverty,
youth, social capital, migration and democratization. Pretty
much any advanced analysis based on our Data Initiative is
of interest to us. We can also help you develop your topic
if you are unsure about it, but are committed to undertaking
professional research. Look at our blog and website,
crrc-caucasus.blogspot.com and http://crrc.az/index.php/en/17/
to see some of the issues that previous fellows have worked
on.
What issues are we NOT looking to address?
We are open to innovative ideas and projects. But we are not
particularly interested in geopolitical studies, partisan
pieces, or research that is unfocused, speculative (or too
theoretical) and does not ground itself in the relevant
existing literature. We prefer research that can make a real
impact by improving people's lives.
What results?
We want you to produce international quality research. You
should aim to publish your research in a peer-reviewed
journal (we will help you find one). This will give your
research international recognition. We also expect your work
to contain prescriptive richness and ask you to present you
findings to relevant interested groups (international
organizations, NGOs, government agencies) in your home
country. We definitely want you to use some of our great
data from the Data Initiative and other surveys.
Who is the fellowship for?
You are smart, committed, curious and want to apply all your
abilities. Typically you will have at least a Master's
Degree. You are committed to develop your research ability
and have a track record of excellence. You may work in
fields other than research, but you are interested in
getting back into research because you realize there are
excellent long-term opportunities there. We require a
working knowledge of English, since you want to publish
internationally. Exceptions can be made for those doing
quantitative and survey work. (Sorry, no funding for
stipends abroad, or for expatriates.)
What do you get?
Primarily you get the satisfaction of doing excellent work
and of being part of a small but vibrant community of
internationally recognized research scholars in the South
Caucasus. Moreover, if you get published internationally,
many opportunities follow. The fellowship provides an
opportunity to prove your professionalism, which you can use
for many other applications (jobs, consultancy work, joint
research projects, conference participation, and
international research stipends such as CRRC’s Carnegie
Fellowship, to name the most obvious). Depending on your
research project, you can also get between 2000 and 4000 USD
for pursuing your research interest (surveys, for example,
may have higher costs).
Is it easy?
Yes and no. We will help at every step. But it certainly is
not easy money. In research you confront new challenges and
difficult decisions all the time. That is why we are doing
it, after all. It requires determination and persistence --
we hope you will join us in the thrill of discovery.
How to prepare?
Our online application procedure is specifically designed to
help you develop your research proposal. Write us a short
e-mail now (latest by November 13, 2009) at
nana+fellow@crrccenters.org to find out more, telling us
about your field of interest, and, if you have it, your
provisional research topic. We will send you an email to let
you know about the next step and to invite you to discuss
your ideas at our open houses.
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The crisis will cause Azerbaijani economy 3.8 billion
dollars damage
According to the economic expert and the chairman of the
board of the center of Economic and Social development Vugar
Bayramov, the GDP of Azerbaijan decreased by 2 percent due
to the financial crisis and this gives a ground for such
prognosis: “If we compare the expected growth rate to the
real growth rate, we can already say that Azeri economy will
be damaged in 3.8 billion dollars during the current year.
Azerbaijan will loose its leadership in GDP growth rate
“One-figure growth rate will be registered in the country’s
economy this year”- said Vugar Bayramov, the chairman of
Social and Economic Development Center in the interview to
IJN News. According to the expert, macroeconomic indicators
of Azerbaijan have been decreasing since the end of 2008.In
spite of the GDP growth at the end of last year, growth is
way smaller compared rate is way lower compared to previous
years : “ In 2006 GDP growth rate was 34,5%, in 2007- 25%
and in 2008 – 10,8 %. Practically saying, growth that begun
in 2005 is now moving backwards to one-figure growth rate,
which can be registered in 2009.
Source.
www.osi.az
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Vugar
Bayramov : “The increase in oil prices will not cause the
delay in making budget changes and additions planned for
this month”
According to the expert the increase of oil
prices can not be a reason for causing a delay in making
budget changes: “The average price of Azerbaijani oil in the
first half of the year will be lower than planned in the
State Budget. Even if the price decreases up to 70 dollars
in the second half of the year, this will not liquidate the
gap in the income part of the budget”. According to the
expert, in order to liquidate this gap and decrease the
current year price rate of Azerbaijan oil up to 70 dollars,
Azerbaijani oil should be sold for 85 dollars in the
following months: “It is important to make additional
changes in the budget. If the oil prices jump above 85
dollars, it will be possible to allocate finances for
planned infrastructure projects by the end of the year.
According to the decision of the Cabinet of Ministers of
April, reserve of 1, 5 billion manats was kept for
infrastructure projects.”
V. Bayramov also noted that consideration of the budget is
not only due to the increase of oil prices, but also to the
stagnation in the non-oil sector: “One part of the State
budget is formed by the incomes from non-oil sector. Due to
the lost job –places in the non –oil sector, the companies
will pay less tax. Also, if people loose their jobs, this
means that government will get fewer income taxes from
individuals”.
“Oil prices are not expected to rise
significantly”
Vugar Bayramov: “In
2009 the price of oil will rise up to 70 dollars in the best
scenario”
Oil prices should be analyzed not only by economic but also
by political factors. According to 2009 budget figures, oil
prices will not rise above 70 dollars in 2009. In the best
scenario the price can jump up to 70 dollars”- said the
chairman of Center for Economic and Social Development (CESD),
Vugar Bayramov in his interview to IJN News. The expert
explained this by increase of the demand for oil but not by
the demand in real sector: “Financial crisis goes on and
there is no progress in the real sector. The growth of the
oil prices is due to increase of demand to this product and
especially in USA”. According to the expert, there was no
general opinion regarding the growth of oil prices. Even
OPEC did not forecast a sharp growth of oil prices. Oil
prices mostly depend on the duration of the crisis. The
crisis caused the decrease in the demand for oil. The expert
also noted that oil prices were not expected to rise
sharply.
Source.
www.osi.az
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CESD held next workshop in Terter
Center for Economic and Social Development (CESD) held next
workshop in Terter with participation of municipality,
community, local government, NGOs and Mass-Media
representatives in February, 18, 2009. In his opening
speech, Dr. Vugar Bayramov, the chairman of Center for
Economic and Social Development (CESD), said that the
project is implemented within the framework of the “Bridging
the gap; developing audit system in local governments to
improve accountability and enhance transparency in
Azerbaijan
” Project with funding of
Local Government and Public Service Reform Initiative (LGI):
“The first workshop was organized in Khacmaz and the main
purpose of the project is educate auditors and to develop
auditing system in local governments. Project experts
educated internal auditors how to do better audit in local
governments.
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