REAL SECTOR

Р°) Production

Р°) Oil and Gas production

Oil and gas production by SOCAR in January to April 2006

Source: SOCAR

In January to April 2006 the State Oil Company of Azerbaijan (SOCAR) produced 2.96 million tons of oil from onshore and offshore fields or 1,200 less as compared 2005. The onshore and offshore oil and gas producing units (OGPU) of the SOCAR produced a total of 2.61 million tons of oil, or 2,700 tons (or 0.1%) down as compared to 2005.

Over the first four months of 2006 the foreign companies under the joint ventures and operating companies lifted 348,640 tons of oil, or 1,400 tons (or 0.4%) more as compared 2005.

In this period gas production amounted 2.24 billion cu m of natural gas, or 591.9 million cu m (or 35.9%) more than 2005. The OGPUs produced 1.26 billion tons of gas, or 3.9 million cu m more than 2005. JVs and OCs produced 38.43 million cu m of gas in this period, or 7 million cu m less than 2004. The Azerbaijan International Operating Company (AIOC) produced 939.97 million cu m of associate gas, or 595 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 April 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 April 2005 as compared to 2005 and produced 2,474,800 tons of different oil products, or 14.6 tons more than 2005.

The production of gasoline went up by 3.3%, kerosene 14.8%, diesel fuel 17.8%, mazut 7.3% and naphta 27.8%. Drop was observed in the production of lubricant - 3.1%. %, and oil bitumen 26.9, the State Statistics Committee told Trend.

РІ) Sale

In April the oil products were sold at the following prices in the world market (FOB MED (Italy)): gasoline $672.14 per ton (-$92.52 per ton against March price), jet kerosene $639.97 per ton (-$60.22 per ton), diesel fuel - $603.47 per ton (-$45.47 per ton), the price of 1 ton of mazut was $339.40 per ton (-$1.09 per ton).

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

Over 2 billion kW/h of electricity was generated in the system of Azerenerji JSC in April 2006, or 8.6% more than 2005, Trend reports.

Azerenerji announced that 1.7 billion kW/h of entire generation fell on thermo-power stations, 0.3 billion kW/h hydro-power stations.

As a result of energy exchange in April 42,545 million kW/h was imported from Russia, 46.9 million from Iran, and 25,817 million kW/h from Turkey.

3. Chemical industry

Azerkimya state company increased production of some chemical products, particularly, caustic sodium (34.5%), propylene (67.7%), ethylene (69.8%), polyethylene (70.3%) and nitrogen (45.9%) in January-April 2006.

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