SOCAR can completely abandon oil exports via Baku-Novorossiysk pipeline
Baku, Azerbaijan, Nov. 20
By Elchin Ismayilov - Trend:
The State Oil Company of Azerbaijan Republic (SOCAR) may completely abandon the export of oil through the Baku-Novorossiysk pipeline, SOCAR vice-president for refining, David Mammadov told journalists on Nov. 20.
According to Mammadov, the section of the pipeline will stand idle as long as SOCAR and Russia have not made a mutually beneficial agreement.
In case of cancellation of export via the Baku-Novorossiysk pipeline, oil can be transported to the west, that is, through the Baku-Supsa pipeline and the Baku-Tbilisi-Ceyhan (BTC) pipeline.
The SOCAR vice president said that earlier the Russian side decided to terminate the intergovernmental agreement on the supply of oil via the Baku-Novorossiysk pipeline. However, there is possibility for further negotiations with the Russian side on the work of the pipeline.
"At this stage the price of oil pumping, which the Russian side may put before the SOCAR, may be disadvantageous," Mammadov said.
At present, the Azerbaijani oil is delivered via the Baku-Novorossiysk oil pipeline, however in May, the Russian Prime Minister, Dmitry Medvedev signed a decree terminating the agreement with Azerbaijan on the transit of Azerbaijani oil via the Baku-Novorossiysk pipeline.