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AIOC and SOCAR Discuss Pipeline Tariff

Oil&Gas Materials 20 August 2007 19:07 (UTC +04:00)

Azerbaijan, Baku / Trend corr S. Aliyev / The State Oil Company of Azerbaijan Republic (SOCAR) is negotiating with Azerbaijan International Operating Company (AIOC) to introduce a tariff for access of AIOC to the Baku-Novorossiysk pipeline, a source reported on 20 August.

A special tariff for AIOC can be established by SOCAR after the State oil company is enabled to operate the pipeline. For the time-being the pipeline is operated by AIOC. However, as BP Azerbaijan's Vice-President of on-shore operations (ВР is the operator of AIOC), Rashid Javanshir, said earlier, the stockholders of the AIOC decided to reject this route.

According to experts, SOCAR may become the operator of the route by the end of this year.

At present the tariff for oil pumping via Baku-Novorossiysk pipeline is $15.67 per ton. The funds are paid by AIOC to Russian Transneft Oil Company. During oil pumping through this route by SOCAR, the state oil company pays the tariff to AIOC, which in turn transfers it to Transneft.

According to Javanshir, AIOC does not have any need for the Baku-Novorossiysk pipeline due to the operation of the Baku-Tbilisi-Ceyhan (BTC) oil exporting pipeline (BTC). The pipeline transports high-gravity oil produced by AIOC in Azeri-Chirag-Gunashli field. AIOC also operates the Baku-Supsa ( Georgia) pipeline, which is now under repair.

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