Resumption of oil pumping via Baku-Novorossiysk corresponds to Azerbaijan’s interests

Photo: Resumption of oil pumping via Baku-Novorossiysk corresponds to Azerbaijan’s interests
 / Oil&Gas

Baku, Azerbaijan, Feb. 21

By Emil Ismayilov - Trend:

The resumption of oil pumping via the Baku-Novorossiysk oil pipeline corresponds to Azerbaijan's interests regarding diversification of supply routes, Azerbaijani Energy Minister Natig Aliyev told journalists.

He said the oil extracted from the Azeri-Chirag-Guneshli block of oil and gas fields is exported via the Baku-Tbilisi-Ceyhan and Baku-Supsa pipelines.

Baku-Novorossiysk pipeline exports the oil of Azerbaijani State Oil Company (SOCAR) and of operating companies, working at other fields of the country.

"Each country wants to diversify oil supply routes and from this point of view the resumption of oil pumping via the Baku-Novorossiysk corresponds to Azerbaijan's interests," the minister said.

SOCAR and the Russian Transneft signed a new agreement on oil transportation via Baku-Novorossiysk pipeline.

"After lengthy talks on resumption of oil transportation via Baku-Novorossiysk oil pipeline, SOCAR and Transneft signed a new agreement based on mutually beneficial terms and conditions. Resumption of oil transportation through the territory of Russia will create opportunities for expanding export routes of Azerbaijani oil to the world markets," SOCAR said.

Baku-Novorossiysk oil pipeline transported oil independently produced by SOCAR, as well as from onshore fields, developed within joint ventures.

In 2013, SOCAR exported 1.75 million tons of oil via the northern Baku-Novorossiysk pipeline compared to 2.06 million tons in 2012.

However, earlier the Russian side decided to terminate the intergovernmental agreement on the supply of oil via the Baku-Novorossiysk pipeline.

Nevertheless, it was stated that there was opportunity for further negotiations with the Russian side on the work of this pipeline, in particular in the opposite direction.

SOCAR has been operating Baku-Novorossiysk oil pipeline since 2008. The company took over the operatorship from Azerbaijan International Operating Company (AIOC - headed by BP).

Baku-Novorossiysk pipeline is 1,147 kilometers long: the length of its Azerbaijani section is 231 kilometers and Russian section - 916 kilometers. It has a diameter of 720 millimeters.

SOCAR said the pipeline was filled with oil in October, 1996. Its maximum capacity stands at 105,000 barrels per day.

Before the suspension of oil pumping through Baku-Novorossiysk pipeline, the tariff for transportation of oil via this pipeline was $15.67 per ton.

There are no data regarding the tariff for oil pumping through the Baku-Novorossiysk after signing the new commercial agreement between SOCAR and Transneft.

Translated by E.A.

Edited by C.N.

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