REAL SECTOR

1. FEC

Р°) Production

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

Source: SOCAR

No principle changes were observed in the structure of oil production. Data by SOCAR testify on inconsiderable drop in oil and gas production. In January to September 2005 the State Oil Company of Azerbaijan (SOCAR) produced 5,991,200 tons of oil from onshore and offshore fields or 1,800 less as compared 2004. The onshore and offshore oil and gas producing units (OGPU) of the SOCAR produced a total of 5992.9 tons of oil, or 32,400 tons (or 0.5%) down as compared to 2004.

In January to September 2005 the foreign companies under the joint ventures and operating companies lifted 730,200 tons of oil, or 31,600 tons (or 4.5%) more as compared 2004.

In January to September 2005 gas production amounted 4120.9 million cu m of natural gas, or 388.6 million cu m (or 10.4%) more than 2004. 2857.8 million cu m of gas production fell to the SOCAR, which is 44.4 million cu m less than 2004. JVs and OCs produced 77.1 million cu m of gas in this period, or 15.4 million cu m less than 2004. The Azerbaijan International Operating Company (AIOC) produced 1186 million cu m of associate gas, or 448.4 million cu m of fuel more as compared 2004.

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

Source: State Statistics Committee

Baku-based oil refinery plants, including the Heydar Aliyev State Oil Company of Azerbaijan (SOCAR) and Azerneftyag, increased the production of major oil products in January to September 2005 as compared to 2004 and produced 5261,500 tons of different oil products, or 567,800 tons (or 12%) or more than 2004.

The production of gasoline went up by 6.1%, avia kerosene -13.2%, fuel mazut вЂ" 14%, diesel mazut вЂ" 10.6%, oil bitumen вЂ" 22.2%, naphta - 24.7%, the State Statistics Committee told Trend. Only production of the lubrications decreased by 13.9%.

The Department of the Marketing and Economic Operations (DMEO) of the State Oil Company of Azerbaijan (SOCAR) exported 717,900 tons of various oil products from the Heydar Aliyev Oil Refinery (former Azerneftyanajag) in January to September 2005, which is 44,800 tons more than same period of 2004.

In September the export of oil products by DMEO SOCAR was 53,180 tons, or 6,780 tons more than August 2005 and 21.720 tons more than September 2004. .

According to SOCAR, in September the oil products were sold at the following prices in the world market (FOB MED (Italy)): motor gasoline вЂ" $659,10 per ton (+$36,53 per ton against August price), jet kerosene вЂ" $648,76 per ton ($27,26 per ton), diesel fuel - $593,25 per ton ($24,39 per ton), the price of 1 ton of mazut was $320,67 per ton ($32,32 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 September 2005 (in ths tons)

2. Power engineering

In January to September 2005 Azerenergy produced over 16,303 billion kW/hour of energy, 0,695 billion MK/h up as compared to 2004. The thermo-power stations produced 14,164bn KW/h of the total, while hydro-power station - 2,139bn KW/h.

In September Azerenergy produced over 1,475 billion kW/hour of energy. Hydropower stations produced 208 million kW/hour of energy, while the thermo-power stations вЂ" 1.267bn KW/h

3.Chemical Industry

Azerkimya state company increased production of some chemical products, particularly, caustic sodium (2.3%), ethylene (0.1%), oxide of chlorine (26.4%) and polyethylene (1.1%) in January to August 2005 as compared to 2004.

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