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Baku-Supsa to Close for Repair by late December

Oil&Gas Materials 9 November 2006 15:10 (UTC +04:00)

The Baku-Supsa oil export pipeline (the Western route) may stand idle by the end of December 2006 due to technical researches currently being carried out by the Azerbaijan International Operating Company (AIOC operated by BP).

The State Oil Company of Azerbaijan (SOCAR), a part of the AIOC, informed Trend that the research of the Baku-Supsa pipeline continues with the use of State electron diagnosis equipment.

The volume of oil produced from the Azeri-Chirag-Gunashli (ACG) and partially via the Baku Supsa pipeline will re-directed to the Baku-Novorossiysk (northern route) during the standing of the western route'. Thus, AIOC partners will lose in quality, because while shipment of oil at the Georgian port of Supsa port Azeri Light brand does not blend with other brands, what occurs at the Novorossiysk port, where Azeri Light is sold as Russian blend Ural.

Currently it is almost impossible to use the Baku-Tbilisi-Ceyhan (BTC) export oil pipeline with the capacity of 540,000 barrels, for the transportation of oil from the ACG, which was earlier allocated for export via the Baku-Supsa. Increase of the capacity of the BTC is also impossible due to absence of fuel natural gas in the pump stations of BTC. Gas will be delivered to the station from the Shah Daniz field, whereas the production here is to start only in December.

At present diesel fuel is used at the pump stations of BTC. The diesel fuel dos not allow BTC Co pipeline company to increase the capacity of pup stations of BTC, but maintain it on the level of 500,000-540,000 barrels.

The maximal project capacity of 1mln barrels will be achieved only in April 2007. Despite gas from Shah Deniz is to run from the end of the year, yet several months are required for testing the system of BTC's pump stations.

In January-October, 2006, 5.616 mln. tons of oil against 5.756 mln tons in January-October, 2005 were carried via pipeline Baku-Supsa (western route). The company exported 392.134 tons of oil via the Baku-Supsa pipeline in October, 2006 against 599.500 tons in October 2005.

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