Azerbaijan, Baku, April 28 / Trend E. Ismayilov /
SOCAR can supply oil for a refinery which Stavropol intends to build if a guaranteed contract on favorable commercial terms is concluded, SOCAR representative said.
Earlier, SOCAR official said that the leadership of Stavropol has already voiced similar proposal. The Russian side wants to build a refinery in Stavropol, which will work on the Azeri oil. But in this case there is a legal controversy because in accordance with the Russian-Azerbaijani inter-state agreement of 1996, Azerbaijani oil is exported through Russian pipelines by transit (Baku-Novorossiysk). None of the parties in the territory of Russia has right to use it.
"It is a matter of commercial negotiations. But it is not refusal from oil exports via Novorossiysk. We can export the oil through Novorossiysk and supply oil to a future refinery in Stavropol, if they conclude a guaranteed contract to buy our oil at good commercial terms," SOCAR representative said.
He said that this option will give the opportunity to save transportation costs for both Azerbaijani and Russian sides.
Currently, governor of Stavropol Territory paid a three-day visit to Azerbaijan. On Tuesday, during a business forum governor of Stavropol Territory stated desire to build a new refinery in the province.
SOCAR representative said that this item was included in the report of the intergovernmental commission on economic cooperation of the Stavropol Territory and Azerbaijan.