SOCAR route of pumping additional oil decided
Baku, Azerbaijan, Jan. 10
By Emil Ismayilov - Trend:
The issue of pumping oil considered for transportation via the Baku-Novorossiysk pipeline and the Baku-Tbilisi-Ceyhan oil pipeline has almost been decided, a source at State Oil Company of Azerbaijan (SOCAR) told Trend on Jan.10.
Around two million tons of oil which SOCAR previously planned to pump via the Baku-Novorossiysk oil pipeline will be pumped via the Baku-Tbilisi-Ceyhan pipeline per year, according to the source.
Construction of the pipeline began in April 2003 and it was filled with oil on May 18, 2005. Stockholders of BTC Co are BP (30.1 percent), AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), ТРАО (6.53 percent), Eni (five per cent), Total (five percent), Itochu (3.40 percent), Inpex (2.5 percent), ConocoPhillips (2.50 percent) and ONGC (2.36 percent).
In addition, the company has the opportunity to transport up to five million tons of additional oil via the BTC, according to the source.
"All the issues related to the pumping of additional oil via BTC by SOCAR (as well as jointly with BP) have almost been decided on. Following the suspension of oil pumping via Baku-Novorossiysk, it will be transported through BTC," the source said.
Currently the oil is exported from Azerbaijan via three oil pipelines: Baku-Tbilisi-Ceyhan, Baku-Supsa and Baku-Novorossiysk, as well as a railway. Thus, in the case of refusal to transport oil via the Baku-Novorossiysk pipeline, it can be directed to two other oil pipelines.
The Baku-Novorossiysk pipeline transports the oil produced by SOCAR independently, as well as from onshore fields developed within joint enterprises.
Earlier the Russian side decided to terminate the intergovernmental agreement on the supply of oil via the Baku-Novorossiysk pipeline. However, there is a chance of further negotiations with the Russian side on the work of the pipeline, particularly in reverse direction.
In May 2013, the Russian Prime Minister, Dmitry Medvedev signed a decree terminating the agreement with Azerbaijan on the transit of Azerbaijani oil via the Baku-Novorossiysk pipeline.
Translated by L.Z.
Edited by C.N.