REAL SECTOR

Р°) Production

Р°) Oil and Gas production

Oil and gas production by SOCAR in January to February 2006

Source: SOCAR

In January to February 2006 the State Oil Company of Azerbaijan (SOCAR) produced 1,458,200 tons of oil from onshore and offshore fields or 6,000 less as compared 2005. The onshore and offshore oil and gas producing units (OGPU) of the SOCAR produced a total of 1291,800 tons of oil, or 5,300 tons (or 1.4%) up as compared to 2005.

Over the first two months of 2006 the foreign companies under the joint ventures and operating companies lifted 166,400 tons of oil, or 0,700 tons (or 0.4%) more as compared 2005.

In this period gas production amounted 1067.6 million cu m of natural gas, or 259.3 million cu m (or 32.1%) more than 2005. The OGPUs produced 624 million tons of gas, or 5.6 million cu m more than 2005. JVs and OCs produced 18.4 million cu m of gas in this period, or 3.8 million cu m less than 2004. The Azerbaijan International Operating Company (AIOC) produced 425.2 million cu m of associate gas, or 257.5 million cu m of fuel more as compared 2005.

Azerbaijan has 57 oil and gas fields with 18 offshore and the rest onshore fields. The SOCAR employs 59,170 people.

Р±) Oil and Gas refinery

Production of major types of oil products in January to February 2006

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 February 2005 as compared to 2005 and produced 1,281,000 tons of different oil products, or 35.4 tons more than 2005.

The production of gasoline went up by 20%, diesel fuel 36.2%, mazut - 38.5% and naphta 18.7%. Drop was observed in the production of lubricant - 11.3%. %, and oil bitumen 2.2, the State Statistics Committee told Trend.

РІ) Sale

In January to February 2006 the Department of the Marketing and Economic Operations (DMEO) of the State Oil Company of Azerbaijan (SOCAR) exported 82,100 tons of various oil products from the Heydar Aliyev Oil Refinery (former Azerneftyanajag).

According to SOCAR, in February the oil products were sold at the following prices in the world market (FOB MED (Italy)): gasoline $510.86 per ton (-$53.97 per ton against January price), jet kerosene $582.18 per ton (-$1.30 per ton), diesel fuel - $523.46 per ton (-$13.56 per ton), the price of 1 ton of mazut was $338.31 per ton (-$20.66 per ton).

Export of oil products from Azerbaijan in January to February 2006 (in ths tons)

Over 2,238 billion kW/h of electricity was generated in the system of Azerenerji JSC in February 2006, or 6.7% more than 2004, Trend reports. In January the production made up 2,44bn KW/h. According to the Central Dispatcher Management told Azerenerji, 2,007 billion kW/h of entire generation fell on thermo-power stations, 231 billion kW/h hydro-power stations.

As a result of energy exchange in February 80.68 billion kW/h was imported from Russia, 64,486 million from Iran and 40,84 million kW/h from Turkey.

3. Chemical industry

Azerkimya state company increased production of some chemical products, particularly, caustic sodium (24.8%), propylene (63%) and nitrogen (7.9%) in January-February 2006.

Production of major types of chemical products in January to February 2006

Source: the State Statistics Committee