AIOC May Terminate Operation of Baku-Novorossiysk Pipeline
Azerbaijan, Baku, /corr Trend V.Sharifov / On 3 April, an official of the State Oil Company of Azerbaijan (SOCAR) reported that in 2007, the Azerbaijan International Operating Company (AIOC) may terminate its operation of the Baku-Novorossiysk pipeline and hand it over to SOCAR.
The agreement between AIOC and the Russian company Transneft on the Baku-Novorossiysk pipeline will expire on 31 December, 2007 and as of preliminary data, AIOC is reluctant to extend the term of this agreement for the next 10 years, as was indicated in the contract signed in 1997.
"The document should be concluded between SOCAR and Transneft over the operation of the pipeline," the same source added.
In the second quarter of 2007, AIOC has not submitted an order for pumping oil via the Baku-Novorossiysk oil pipeline. SOCAR is planning to pump 60,000 tons of oil a month via this route. 95% of each cargo will consist of oil from joint companies and onshore operating companies.
The tariff for oil pumping via the Baku-Novorossiysk oil pipeline is $15.67.
A total of 282,750 tons of oil has been transported via the northern route in February 2007 against 316,000 tons which was transported in February, 2006.