Azerbaijan continues pumping its light crude via the northern route Baku-Novorossiysk Pipeline. Trend has been told in the State Oil Company of Azerbaijan (SOCAR) today, some 315,000 tons (2.3 mln. barrels.) of Azeri Light crude oil is expected to be shipped from the Novorossiysk port in January 2007.
The price on URAL (EX-NOVO) in 8 January, 2007, reached $47.78 per barrel, which is $0.53 more than the corresponding price fixed on 5 January, 2007.
The volume is announced by AIOC (Azerbaijan International Operating Company). Beginning from January, 2007, the pipeline will pump an average of 11,000-12,000 tons per day, a source in SOCAR stated.
Azerbaijan sells oil grade URAL from the Russian Black Sea Port of Novorossiysk. The high quality Azerbaijani oil, including Azeri Light is mixed with other oil grades in the Russian Pipeline System and sells from Novorossiysk Port as URAL. The density of URAL is 30.4-31.85 degrees according to API and the content of sulfur is up to 1.8%.
AIOC intends to continue piping its oil via this route, since the oil export via Baku-Supsa Pipeline has been held up due to technical work being carried out on the pipeline.
The tariff on piping one ton of oil via Baku-Novorossiysk Pipeline is $15.67 and $3.7 via Baku-Supsa.
SOCAR is currently unable to pump its oil via Baku-Novorossiysk Pipeline due to its transition to mazut and the refining in great volumes of oil at Baku oil refinery plants to produce the black oil product. Mazut is very much in demand in Azerbaijan to generate electric power, given that Russia does not export gas to Azerbaijan any more.