SOCAR Announced a Tender on Export of Oil Products to Georgia

Oil&Gas Materials 12 December 2006 19:46 (UTC +04:00)

SOCAR (State Oil Company of Azerbaijan) has announced a tender on oil product deliveries to the Georgian market in 2007, a source in SOCAR told Trend. The forthcoming tender concerns petrol and diesel fuel deliveries to the Georgian market in the next year.

The tender was announced without announcing concrete oil product volumes. The situation with the gas import leaves the issue connected with oil refinery and mazut reserves unsettled, said the source in SOCAR.

In 2006, totally 500,000 tons of mazut is 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 to the Iranian Port of Neka by tankers that belong to the Caspian Shipping Company of Azerbaijan.

ISOCAR has a contract on delivering petrol with Georgia Saknaftobtransi. The Georgian Company receives 20,000 tons of petrol every month.

The uncertainty with the issue on the gas import to Azerbaijan in 2007 impedes SOCAR to determine volumes of oil products by tenders that will be held in the mid December, 2006, a source in SOCAR told Trend.

The main problem is connected with the issue of uncertainty with volumes of mazut the country will need to generate for 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 for tenders, said the source in SOCAR. The gas Azerbaijan imports from Russia is sent to the power stations to generate electric power.