Real sector

1. Production

Р°) Oil and Gas production

Oil and gas production by SOCAR in January to November 2006

In January-November 2006, the State Oil Company of Azerbaijan (SOCAR), Operating Companies (OC) and Joint Ventures (JV) produced 8.23mln tons of oil from onshore and offshore fields of the Country, which is by 26,150 tons (0.3%) more than was produced in 2005.

Over January-November 2006, foreign companies within the joint ventures (JV) and operating companies (OC) produced 7.18mln tons oil, which is by 13,960 tons (0.2%) more than was produced in 2005.

During this period the oil and gas production units (OGPU) of SOCAR produced a total of 1.05mln tons of oil, or 12,190 tons (1.2%) more as compared to 2005, the Company told Trend

According to SOCAR, in 2006, the total gas production in Azerbaijan comprised of 6.15bln cu.m. or 915.36mln cu.m. (17.5%) more as compared to 2005. The oil and gas production units of SOCAR produced 3.89bln cu.m. of gas, or 425.94mln cu.m. (12.3%) more as compared to 2005. JV and OC produced 102.99mln cu.m. of gas in January вЂ" November 2006, or 15.73mln cu.m. (13.2%) less than in 2005.

During this period the Azerbaijan International operating Company (AIOC) produced, from the Azeri-Chirag-Gunashli field, 2.09bln cu.m. of associated gas, or 445.27mln cu.m. more as compared to 2005.

There are 57 oil and gas fields in Azerbaijan, including 18 offshore. SOCAR staff consists of 59,170 employees.

b) Oil and Gas refinery

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

Source: State Statistics Committee

January-November 2006, the Baku-based Oil Refineries, parts of the State Oil Company of Azerbaijan (SOCAR)-Heydar Aliyev Oil Refinery Plant (former Azerneftyanacag) and Azerneftyag, produced 6,795,560 tons of various oil products, that is by 3% more versus the corresponding period of 2005.

According to the State Statistics Committee, during this period the production of gasoline grew by 15%, kerosene вЂ" 8.9%, diesel fuel вЂ" 2%. Over the first 11 months of 2006, the growth was achieved in the production of lubricants вЂ" 94.6%, and oil bitumen вЂ" 26.8 percent.

c) Sale

In January to November 2006 the Marketing and Economic Operations Department (MEPD) of the State Oil Company of Azerbaijan Republic (SOCAR) has exported 2,753,200mln tones of oil products against 1,998,303 tons in the same period of 2005, Trend reports.

In November, 249,358 tons of oil products were exported from oil refinery plants of Azerbaijan against 176,026 tons in 2006.

The most part of the export fell on diesel oil, which made up 1,280,380 tones, mazut вЂ" 870,421 tons, gasoline вЂ" 311,468 tons, jet kerosene вЂ" 203,881 tons, naphtha вЂ" 29,965 tons, lubricating oil вЂ" 40,434 and bitumen вЂ" 16,664 tons.

The most expensive oil product in November was jet kerosene, which cost $572.99 per ton. The price of petrol in November was $524.65, diesel fuel - $535.48, mazut - $259.46.

Export of oil products in January вЂ" November 2006 (in ths tons)

2. Power Engineering

In November 2006, Azerenerji JSC produced more than 2 bln kVt electric power, Trend reports with reference to the JSC statement. Some 1.9 bln kVt of electric power was passed through the thermal electric station and 0,1 bln through hydro-electric power stations.

In November 2006, the exchange of the electric power was realized with the neighboring countries. Some 36.5mln kVt was received from Russia, 62.3mln from Iran and 27.07 mln from Turkey.

Since the beginning of the year, AzerEnerji has produced more than 21.2 bln kVt electric power, with 18.9bln kVt through thermal electric stations.

3. Chemical complex

In January-November 2006, Azerkimiya State Company has increased the production as comprised to the same period of 2005.

In January-November 2006, the Company increased the production of hydrate of sodium (by 30.1%), polyethylene (by 25%), nitrogen (21.1%), ethylene (21.2%) and polyethylene (22%).

Production of key types of chemical products for January-November 2006:

2. Power Engineering

In November 2006, Azerenerji JSC produced more than 2 bln kVt electric power, Trend reports with reference to the JSC statement. Some 1.9 bln kVt of electric power was passed through the thermal electric station and 0,1 bln through hydro-electric power stations.

In November 2006, the exchange of the electric power was realized with the neighboring countries. Some 36.5mln kVt was received from Russia, 62.3mln from Iran and 27.07 mln from Turkey.

Since the beginning of the year, AzerEnerji has produced more than 21.2 bln kVt electric power, with 18.9bln kVt through thermal electric stations.

3. Chemical complex

In January-November 2006, Azerkimiya State Company has increased the production as comprised to the same period of 2005.

In January-November 2006, the Company increased the production of hydrate of sodium (by 30.1%), polyethylene (by 25%), nitrogen (21.1%), ethylene (21.2%) and polyethylene (22%).

Production of key types of chemical products for January-November 2006: