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Uncertainty with Issue on Gas Import to Azerbaijan in 2007 Has an Effect in SOCAR Tenders on Export of Oil Products

Oil&Gas Materials 2 December 2006 14:23 (UTC +04:00)

The uncertainty with the issue on the gas import to Azerbaijan in 2007 impedes SOCAR (State Oil Company of Azerbaijan) to determine volumes of oil products to be put to tenders to be held in the mid of December, 2006, a source in SOCAR told Trend.

The main problem is that the country will need to generate electric power in its power stations instead of the gas being imported. The uncertainty with the issue will not allow determining the mazut reserves needed for the country, as well as the volumes being put to tenders, the source in SOCAR said.

The gas Azerbaijan imports from Russia is sent to the power stations to generate electric power.

SOCAR is expected to announce tenders on selling diesel fuel, petrol, as well as mazut to Georgia and Iran in the mid of December,

In 2006, totally 500.000 tons of mazut are expected to be sold to Singapore Petrofarm from the two Baku oil refinery plants Heydar Aliyev Refinery (former Azerneftyanadjag and Azerneftyag. Petrofarm has bought 200.000 tons of mazut branded M-40 from SOCAR. Other 300.000 tons of mazut branded Рњ-100 are expected to be exported from the Heydar Aliyev Refinery.

SOCAR has a contract with Petrofarm on delivering 50.000 tons of petrol in 2006. The refined product is unloaded with the basis of FOB Mooring Line #20 that is on the balance of Azrneftyag Refinery (a subsidiary of SOCAR). Petrofarm is shipping the petrol till the Iranian Port of Neka by tankers that belong to the Caspian Shipping Company of Azerbaijan.

In addition, SOCAR has a contract on delivering petrol with Georgia Saknaftobtransi. The Georgian Company receives some 20.000 tons of petrol every month.

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