Azerbaijan, Baku, May 29 / Trend E. Ismailov /
An economically sound solution for Azerbaijan and Russia will be found in the issue of the transit of Azerbaijan's oil through Russia, head of SOCAR (State Oil Company of Azerbaijan) Rovnag Abdullayev told journalists.
According to him, SOCAR and specialists of the Russian Transneft are currently having negotiations.
"Achieving an agreement between the parties requires consideration of a number of commercial issues. First of all provision of the necessary amount of oil requires the establishment of an oil quality bank," Abdullayev said.
According to the head of SOCAR, Azerbaijan also had losses during the transportation of oil through Russia because Azeri Light oil is exported from Novorossiysk under the URALS brand. "This, in turn, leads to losses," he noted.
There are other issues and opportunities that should also be considered and in particular the possibility of oil transportation via a third party, or the pipeline reverse. "Economic efficiency of all possible options will be considered," Abdullayev said.
According to him, until the end of this year, the parties will consider and agree on all issues. "There is enough time," SOCAR head said.
Until the end of this year, the supply of oil via the Baku-Novorossiysk pipeline will be continued in accordance with the existing agreement.
Earlier, Prime Minister of Russia Dmitry Medvedev signed a decree to terminate the agreement with Azerbaijan on the transit of Azerbaijani oil via the Baku-Novorossiysk pipeline.
AIOC was the operator of the Baku-Novorossiysk pipeline before the end of 2007 when it transferred its functions to SOCAR.
SOCAR conducts transhipment of oil from its own fields, as well as oil extracted by joint ventures and operating companies operating onshore in Azerbaijan through Novorossiysk.
In 2012, SOCAR exported via the northern pipeline Baku-Novorossiysk, 2.06 million tons compared to 1.99 million tons in 2011.