SOCAR May Totally Abandon Oil Export via Baku-Novorossiysk Pipeline in 2007

Oil&Gas Materials 8 January 2007 20:03 (UTC +04:00)

The State Oil Company of Azerbaijan (SOCAR) may totally give up the oil export via the Northern Export Route вЂ" Baku-Novorossiysk Pipeline, experts of Azerbaijan's oil industry have informed Trend today.

Starting from 1 January, 2007, piping oil via the route was suspended due to the transition to the mazut working regime that caused sending all SOCAR's oil to be refined at Baku oil refinery plants.

In the second and third quarter, due to the reduction in the electric power consumption (a season factor) in the country, as well as the launch of the gas production from gas condensate field Shahdaniz, SOCAR may have some additional volume of crude oil, explained the experts.

Azerbaijan can continue refining the volumes at Baku oil refineries, and export finished oil products, not resuming piping oil via the northern pipeline.

The experts also do not rule out that the additional volume of crude oil might be exported via the pipelines Baku-Supsa and the BTC Pipeline.

At present, Baku-Supsa Pipeline does not operate due to some technical shortcomings. However, it does not rule out that the pipeline will be put into commission in February-March, 2007 again. Due to the replacement of diesel fuel at the pumping units with gas to be received from Shahdaniz field, in April, 2007, BTC can reach the projected piping capacity of 50 mln. tons of crude per year.

The tariff on piping 1 ton of oil via Baku-Novorossiysk Pipeline is $15.67, and $3.7 via Baku-Supsa.