REAL SECTOR

1. FEC

a) Production

Oil and gas production by SOCAR in January to October 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 7,477,700 tons of oil from onshore and offshore fields or 18,200 less as compared 2004. The onshore and offshore oil and gas producing units (OGPU) of the SOCAR produced a total of 6659.5 tons of oil, or 51,000 tons (or 0.8%) down as compared to 2004.

In January to October 2005 the foreign companies under the joint ventures and operating companies lifted 818,200 tons of oil, or 32,800 tons (or 4.2%) more as compared 2004.

In January to October 2005 gas production amounted 4684.5 million cu m of natural gas, or 523.5 million cu m (or 12.6%) more than 2004. 3181.3 million cu m of gas production fell to the SOCAR, which is 52.1 million cu m less than 2004. JVs and OCs produced 86.5 million cu m of gas in this period, or 13.2 million cu m less than 2004. The Azerbaijan International Operating Company (AIOC) produced 1416.7 million cu m of associate gas, or 588.8 million cu m of fuel more as compared 2004

b) Oil and Gas refinery

Production of major types of oil products in January to October 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 October 2005 as compared to 2004 and produced 5974,800 tons of different oil products, or 5210,800 tons more than 2004.

The production of gasoline went up by 6.1%, avia kerosene -14.3%, fuel mazut вЂ" 18%, diesel mazut вЂ" 13.1%, oil bitumen вЂ" 25.4%, naphta - 22.1%, the State Statistics Committee told Trend. Only production of the lubrications decreased by 17.3%.

v) Sale

In January to October 2005 the Department of the Marketing and Economic Operations (DMEO) of the State Oil Company of Azerbaijan (SOCAR) exported 821,100 tons of various oil products from the Heydar Aliyev Oil Refinery (former Azerneftyanajag), or 51,400 tons more as compared 2004. in September the oil products were sold at the following prices in the world market (FOB MED (Italy)): motor gasoline вЂ" $565,90 per ton (-$93,20per ton against September price), jet kerosene вЂ" $624,32 per ton (-$24,44 per ton), diesel fuel - $569,52 per ton (-$23,73 per ton), the price of 1 ton of mazut was $300,49 per ton (-$20,18 per ton).

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

2. Power engineering

In January to October 2005 Azerenergy produced over 18 billion kW/hour of energy. The thermo-power stations produced 15,613bn KW/h of the total, while hydro-power station - 2,369bn KW/h.

In October Azerenergy produced over 1,706 billion kW/hour of energy. Hydropower stations produced 257 million kW/hour of energy, while the thermo-power stations вЂ" 1.449bn KW/h

3. Chemical Industry

Azerkimya state company increased production of some chemical products, particularly, caustic sodium (3.5%), ethylene (0.2%), oxide of chlorine (19%) and polyethylene (1.4%) in January to August 2005 as compared to 2004.

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