SOCAR, Gazprom ink contract (UPDATE 2)
Updated after fourth paragraph
Azerbaijan, Baku, Oct. 14 / Trend , E.Ismayilov/
On Oct. 14, in Baku, the State Oil Company of Azerbaijan Republic (SOCAR) and Russia's Gazprom signed a medium-term contract to supply the Azerbaijani gas to Russia. From Azerbaijan, the contract was signed by the President of SOCAR Rovnag Abdullayev, from Russia - Gazprom CEO Alexey Miller.
Terms of the contract envisages supplying at least 500 million cubic meters of own gas of SOCAR per year beginning from 2010.
Medium-term contract signed today between SOCAR and Gazprom envisages prolongation, the head of Gazprom Alexei Miller said after signing the document in Baku. "That's why, we call it [contract] long-term," said Miller.
During the signing ceremony, the head of SOCAR Rovnag Abdullayev said that signing the contract provides great opportunities to develop relations between Azerbaijan and Russia in this sphere, deepen cooperation both in their own markets and the markets of Europe and Asia.
According to Abdullayev, the contract involves the sale of "any gas produced in Azerbaijan. "There are plans to transport 500 million cubic meters of gas in 2010, but "this figure could be higher," said Abdullayev.
Azerbaijan has four lines transporting gas - Turkey, Georgia, Iran (swap), and after the signing of a contract between SOCAR and Gazprom today, SOCAR will be able to quickly export the excess volumes of gas to Russia, said Abdullayev.
He said that gas exports to Russia will create a possibility for SOCAR to expand its own gas program, as well as the development of gas infrastructure.
"The cost of gas [for Gazprom] is determined on the basis of a formula that is available for SOCAR," said Abdullayev.
According to the head of Gazprom, Alexei Miller, the cooperation between the sides will contribute to the economic development of Azerbaijan.