Azerbaijan, India intend to expand cooperation in energy sphere

Photo: Azerbaijan, India intend to expand cooperation in energy sphere / Oil&Gas

Baku, Azerbaijan, Feb.26
By Emil Ismayilov - Trend:

Azerbaijan and India are to create a joint working group in the energy sector (hydrocarbons), the Indian media outlet reported.

The decision on this was adopted at the third meeting of the intergovernmental commission of trade, economic, scientific and technological cooperation between the two countries that was held in India. The Azerbaijani delegation at the meeting was headed by the country's Minister of Ecology and Natural Resources Huseyngulu Bagirov.

The process of formation of the working group's composition in the sphere of energy should be speeded up according to the Minister of State for Commerce and Industry, E.M.S. Natchiappan.

During the meeting, the parties agreed to study the possibilities of cooperation in the sphere of alternative and renewable energy sources, oil and gas sector, chemical industry and pipeline projects.

Indian ONGC Videsh is represented in Azerbaijan's oil and gas sector. The U.S Hess Company agreed to sell its share in large oil and gas projects in Azerbaijan to ONGC. In March, 2013, Hess Corporation declared that it has completed the deal on selling its share in the Azeri-Chirag-Guneshli projects and Naku-Tbilsi-Ceyhan (BTC) oil pipeline to ONGC Videsh.

Hess agreed to sell its share (2.72 percent) in the Azeri-Chirag-Guneshli (ACG) development project, as well as its share (2.36 percent) in the BTC project to ONSC for $1 billion. .The net profit from the deal amounted to $884 million after taxes.

The contract for the development of Azeri-Chirag-Guneshli large offshore field was signed in 1994. Shares in the contract for the development of the Azeri-Chirag-Guneshli block of fields is distributed as follows: BP (operator in Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 pe cent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - eight per cent, TPAO - 6.75 percent, Itochu - 4.3 percent and ONGC - 2.72 percent.

The trade turnover between Azerbaijan and India amounted to $1.15 billion as of 2013 which is 41.4 percent less compared to 2012.

Some $49.6 million of the total trade turnover fell to Azerbaijan's imports, while India imported $1.09 billion worth of goods in 2013.

Translated by L.Z.

Edited by S.M.

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