REAL SECTOR

FEC

Р°) Production

Oil and gas production by SOCAR in 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 2005 the State Oil Company of Azerbaijan (SOCAR) produced 8,967 million tons of oil from onshore and offshore fields or 9,000 tons less as compared 2004. The onshore and offshore oil and gas producing units (OGPU) of the SOCAR produced a total of 7,973 million tons of oil, or 45,600 tons (or 0.6%) down as compared to 2004.

In 2005 the foreign companies under the joint ventures and operating companies lifted 994,100 tons of oil, or 36,600 tons (or 3.8%) more as compared 2004.

In 2005 gas production amounted 5,818 billion cu m of natural gas, or 812.1 million cu m (or 16.2%) more than 2004. 3,824 billion cu m of gas production fell to the SOCAR, which is 51.7 million cu m less than 2004. JVs and OCs produced 106.6 million cu m of gas in this period, or 17.4 million cu m less than 2004. The Azerbaijan International Operating Company (AIOC) produced 1,887 billion cu m of associate gas, or 881.2 million cu m of fuel more as compared 2004

b) Oil and Gas refinery

Production of major types of oil products in 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 2005 as compared to 2004 and produced 7.3 million tons of different oil products, or 6.25 million tons more than 2004.

The production of gasoline went up by 6.4%, avia kerosene -15.5%, fuel mazut 21%, diesel mazut 21%, oil bitumen 24.1%, naphta - 16.6%, the State Statistics Committee told Trend. Only production of the lubrications decreased by 4.3%.

РІ) Sale

In 2005 the Department of the Marketing and Economic Operations (DMEO) of the State Oil Company of Azerbaijan (SOCAR) exported 2,205 million tons of various oil products from the Heydar Aliyev Oil Refinery (former Azerneftyanajag) with rise of 7.5% against 2.05 million tons in 2004.

Export by the Heydar Aliyev ORP made up 1,005 million tons of oil products against 0,897 million in 2004, Azereneftyanajag 1.2 million tons against 1.15 million tons in 2004. Rise in export of oil products was achieved due to rise in sale of mazut from the Heydar Aliyev ORP up to 103,200 tons, In 2004 the ORP did not exported mazut.

According to SOCAR, in December the oil products were sold at the following prices in the world market (FOB MED (Italy)): gasoline $506.93 per ton (-$24.37 per ton against November price), jet kerosene $539.864 per ton (-$2.02 per ton), diesel fuel - $508.49 per ton (-$12.86 per ton), the price of 1 ton of mazut was $288.25 per ton (-$10.77 per ton).

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

In 2005 Azerenergy produced over 22,348 billion kW/hour of energy. The thermo-power stations produced 19,34bn KW/h of the total, while hydro-power station - 3,07bn KW/h.

In December Azerenergy produced over 2.29 billion kW/hour of energy. Hydropower stations produced 320 million kW/hour of energy, while the thermo-power stations 1.97bn KW/h

3. Chemical industry

Azerkimya state company increased production of some chemical products, particularly, caustic sodium (6.8%), oxide of chlorine (18.2%) and nitrogen (20.8%) in January to November 2005 as compared to 2004.

Production of major types of chemical products in 2005

Source: the State Statistics Committee