Baku, Azerbaijan, March 13
By Emil Ismayilov - Trend:
The Baku-Novorossiysk oil pipeline is an advantageous direction for SOCAR's oil transportation, SOCAR's senior representative told media on March 12.
"There are a number of factors, which make this direction profitable for SOCAR," the representative said. "One of them is that SOCAR is an active player on the Black Sea market, by shipping oil from the Georgian port of Supsa and Novorossiysk."
The lack of quality bank and measurement system in barrels while shipping oil from Novorossiysk reduces the economic advantage, "But it does not mean that the Baku- Novorossiysk oil pipeline is unprofitable for us," the representative said. "It is less favorable compared to other routes."
Last year the Russian side decided to terminate the intergovernmental agreement on oil supplies via the Baku-Novorossiysk pipeline.
Oil pumping via this pipeline was suspended in February 2014 and forwarded to the Baku-Tbilisi-Ceyhan (BTC), which exports most of the oil produced in Azerbaijan (from the Azeri-Chirag-Guneshli block of oil and gas fields).
However, SOCAR and Russian Transneft signed a new one-year agreement. Oil transportation via the Baku-Novorossiysk pipeline was restored according to this agreement.
Under the previous agreement the tariff for transportation of oil via the Baku-Novorossiysk pipeline was $15.67 per ton.
The new tariff for pumping oil northwards slightly exceeds $16.
Baku-Novorossiysk oil pipeline transported oil independently produced by SOCAR, as well as from onshore fields, developed within joint ventures.
In 2013, SOCAR exported 1.75 million tons of oil via the northern Baku-Novorossiysk pipeline compared to 2.06 million tons in 2012.
SOCAR has been operating Baku-Novorossiysk oil pipeline since 2008. The company took over the operatorship from Azerbaijan International Operating Company (AIOC - headed by BP).
Baku-Novorossiysk pipeline is 1,147 kilometers long: the length of its Azerbaijani section is 231 kilometers and the Russian section is 916 kilometers. It has a diameter of 720 millimeters. SOCAR said the pipeline was filled with oil in October, 1996. Its maximum capacity stands at 105,000 barrels per day.
Translated by NH
Edited by CN