REAL SECTOR

1. FEC

Р°) Production

Oil and gas production by SOCAR in January to July of 2005

Source: SOCAR

no principle changes were observed in the structure of oil production. Adapt by SOCAR testify on inconsiderable drop in oil and gas production. In January to July the SOCAR lifted 5230,000 tons of oil from the onshore and offshore fields, or 1,200 tons down as compared to 2004. The onshore and offshore oil and gas producing units (OGPUs) of the SOCAR produced a total of 4668,900 tons of oil, or 28,800 tons (or 0.6%) down as compared to 2004.

no principle changes were observed in the structure of oil production. Adapt by SOCAR testify on inconsiderable drop in oil and gas production. In January to July the SOCAR lifted 5230,000 tons of oil from the onshore and offshore fields, or 1,200 tons down as compared to 2004. The onshore and offshore oil and gas producing units (OGPUs) of the SOCAR produced a total of 4668,900 tons of oil, or 28,800 tons (or 0.6%) down as compared to 2004.

In January to July 2005 the foreign companies under the joint ventures and operating companies lifted 561,100 tons of oil, or 27,600 tons (or 5.2%) more than 2004.

In January to July 2005 the foreign companies under the joint ventures and operating companies lifted 561,100 tons of oil, or 27,600 tons (or 5.2%) more than 2004.

In January to July 2005 gas production amounted 3053.6 million cu m of natural gas, or 156.9 million cu m (or 5.4%) more than 2004. 2222.7 million cu m of gas production fell on the SOCAR, which is 35.2 million cu m less than 2004. JVs and OCs produced 61.2 million cu m of gas in this period, or 14.4 million cu m less than 2004. The Azerbaijan International OPertayig Company (AIOC) produced 769.7 million cu m of associate gas, or 206.5 million cu m of fuel more than 2004.

In January to July 2005 gas production amounted 3053.6 million cu m of natural gas, or 156.9 million cu m (or 5.4%) more than 2004. 2222.7 million cu m of gas production fell on the SOCAR, which is 35.2 million cu m less than 2004. JVs and OCs produced 61.2 million cu m of gas in this period, or 14.4 million cu m less than 2004. The Azerbaijan International OPertayig Company (AIOC) produced 769.7 million cu m of associate gas, or 206.5 million cu m of fuel more than 2004.

b. Refinery

Production of major types of oil products in January to July 2005

Source: State Statistics Committee

In January to July 2005 Azerneftyag and Heydar Aliyev oil refinery factories increased production of major oil products as compared to similar period of 2004. Production of petrol increased 8.8%, aviation kerosene вЂ" 14.8%, fuel mazut вЂ" 10.5%, diesel fuel вЂ" 7.9%, oil bitumen вЂ" 24.5%, naphta вЂ" 21.3%. The production of lubricants dropped 2%.

РІ) sale

In July the ORPs exported 217,700 tons of oil products against 334,800 tons in June. Р' январе-РёСЋР"Рµ общий СЌРєСЃРїРѕСЂС' СЃРѕСЃС'авиР" 1,318 РјР"РЅ. С'РѕРЅРЅ РЅРµС"С'епродукС'РѕРІ. According to the SOCAR,in July the oil products were sold at world markets at prices (FOB MED (Italy)): automobile petrol вЂ" $544,51 per ton (+$34,90 per ton to June price), aviation kerosene вЂ" $568,69 per ton ($16,20 per ton), diesel fuel - $519,82 per ton ($14,69 per ton), the cost of mazut was $271,65 per ton.

In compliance with the 2004 payment sheet of Azerbaijan, last year the country exported $3096.3m worth of oil and oil products, or 82.7% of export ($3743m). According to the statistics of the National Bank of Azerbaijan, in 2004 crude export from the country made up $2393.1 million, of which 1779.2 fell on the AIOC, including $1459.1 million of profit oil of foreign partners and $320.1 million вЂ" Azerbaijan. SOCAR and different producers exported oil for $613.9m.

Export of oil products from Azerbaijan in January to July 2005 (in ths tons)

Azerenergy produced over 13,193 billion kW/hour of energy in January to July 2005, or 3.7% more than 2004. Hydropower stations produced 752 million kW/hour of energy (down 9.4%), while the thermo-power stations вЂ" 11.441bn KW/h

In July Azernergy generated 1,628 billion KW/h energy, or 9.3% more than 2004. Hydropower stations produced 204 million kW/hour of energy (down 9.4%), while the thermo-power stations вЂ" 1.424bn KW/h

3. Chemical industry

In January to July of 2005 Azerchemya increased production of some chemical products in regard to relevant period of 2004. According to the State Statistics Committee, production of nitrogen grew (+3.1%), chlorine oxide (+43.2%) and caustic sodium (+4.9%)

Production of major types of chemical products in January to July 2005

Source: State Statistics Committee