The State Oil Company of Azerbaijan (SOCAR) and Russian company Transneft maintained in force an agreement on oil export via the Baku-Novorossiysk route in 2005. The sides can inform each other on any changes in August of every year, SOCAR announced.
“The sides did not use the right by mid-August, which means the SOCAR and Transneft decided to maintain oil export via the Baku-Novorossiysk route by 2006,” the same source said.
The Baku-Novorossiysk pipeline was put into exploitation in 1997. In January to July the SOCAR shipped 990,500 tons of Ural oil Novorossiysk, or 500,500 less than 2004. In July 84,700 tons of Ural oil was shipped from Novorossiysk, or 5,800 down as compared to June 2005 and 124,700 tons down as compare to July 2004.
Drop in oil shipment from Novorossysk is explained with the fact that the Azerbaijan International Operating Company (AIOC) was involved in oil pumping via the northern route during the first half-year. In 2004 the SOCAR sold 2559,100 tons of oil from Novorossiyk, which is 77,100 tons more than 2003.
Oil pumping tariffs via the Baku-Novorossiysk pipeline is $15.67 per ton.