Identifier
Created
Classification
Origin
08BAKU276
2008-03-19 14:41:00
UNCLASSIFIED
Embassy Baku
Cable title:
AZERBAIJAN ENERGY UPDATE, MARCH 2008
how-toVZCZCXYZ0011 RR RUEHWEB DE RUEHKB #0276/01 0791441 ZNR UUUUU ZZH R 191441Z MAR 08 FM AMEMBASSY BAKU TO RUEHC/SECSTATE WASHDC 5012 INFO RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEAIIA/CIA WASHINGTON DC RUEKDIA/DIA WASHINGTON DC RHEHNSC/NSC WASHDC RHMFISS/CDR USEUCOM VAIHINGEN GE RUEHAK/AMEMBASSY ANKARA 2727 RHEBAAA/DEPT OF ENERGY WASHDC
UNCLAS BAKU 000276
SIPDIS
SIPDIS
DEPT FOR EUR/CARC
E.O. 12958: N/A
TAGS: PGOV PREL AJ ENRG
SUBJECT: AZERBAIJAN ENERGY UPDATE, MARCH 2008
UNCLAS BAKU 000276
SIPDIS
SIPDIS
DEPT FOR EUR/CARC
E.O. 12958: N/A
TAGS: PGOV PREL AJ ENRG
SUBJECT: AZERBAIJAN ENERGY UPDATE, MARCH 2008
1. SUMMARY: This is the first in a series of regular energy updates,
highlighting developments outside of the major off-shore oil and gas
production and transport projects. The information contained in
these reports is drawn primarily from the Azerbaijani local press,
and has not been checked for accuracy. The opinions and policies
expressed in this report are those of the authors, not the U.S.
Government. END SUMMARY.
2. SOCAR HEAD TAKES SECOND JOB
--------------
On March 17, the Azerbaijani Football Federation's Association
(AFFA) elected SOCAR President Rovnag Abdullayev as its new
President. Abdullayev said he would actively contribute to the
development of Azerbaijan's football, seek tax exemption for
football sponsors, and that SOCAR would help all the football clubs
of Azerbaijan,
3. AZERBAIJAN AND GREECE SIGN GAS MOU
--------------
On March 17, GOAJ Energy Minister Natig Aliyev and visiting Greek
Development Minister Christos Philias signed an MOU on energy
cooperation, including the supply of Azerbaijani gas to Greece.
Greece wants to import 1 billion cubic meters annually of
Azerbaijan's gas from Shah Deniz Phase Two (further details septel).
4. DIESEL FUEL TO BE SHIPPED FROM KULEVI
--------------
According to SOCAR, its Kulevi Black Sea Oil Terminal in Georgia has
been fully repaired and SOCAR will start operations there in late
March or early April, when it plans to ship its first tanker with
Azerbaijan's diesel fuel. SOCAR bought the terminal from the
well-known Georgian businessmen, Badri Patarkatsishvili in 2006. It
is repairing the terminal with a syndicated loan of $305 million
from 15 European banks over five years. SOCAR also plans to
transport oil from Kazakhstan via Kulevi.
5. SOCAR TO INVEST $100 MILLION IN GEORGIAN PROJECTS
-------------- --------------
SOCAR intends to invest $100 million in projects in Georgia in 2008.
This will be done via SOCAR Georgia (the local subsidiary). SOCAR
investment in Georgia was $380 million in 2007. The index will
decrease because the repair of the oil terminal in Kulevi has been
completed. SOCAR will build new oil reservoirs totaling $15 million
in Georgia in 2008. An office will be also built for SOCAR Georgia
for $10 million.
6. SOCAR TO START DRILLING FIRST WELL ON UMID FIELD
-------------- --------------
SOCAR President Rovnag Abdullayev said SOCAR would start exploratory
drilling on the offshore Umid gas field soon. The first production
well will be launched in 2009. The gas field reportedly includes
200 billion or 300 billion cubic meters.
7. SOCAR'S PRESIDENT TO VISIT GEORGIA
--------------
SOCAR President Rovnag Abdullayev will visit Georgia next week to
continue talks over Azerbaijani gas exports and to discuss several
other Georgian projects. Talks are expected to focus on the price,
amount and schedule of the supply of Azerbaijani gas. Abdullayev
said Azerbaijan would be able to provide Georgia with the required
amounts completely after its own gas extraction increased to 8
billion cubic meters. In 2008, Azerbaijan is ready to supply up to
500 million cubic meters at $180-200 per 1,000 cubic meters.
Georgian Energy Minister Khetagouri said Azerbaijan and Georgia
would finalize their talks over gas trade soon. He said the sides
were discussing technical details and not the price of the gas.
8. SOCAR GEORGIA - BIGGEST TAXPAYER OF GEORGIA
-------------- --
SOCAR Georgia has been recognized Georgia's largest taxpayer in
2007. This subsidiary of SOCAR was created in December, 2006.
SOCAR invested $380 million in Georgia's economy in 2007.
9. KAZMUNAYGAZ BUYS NAFTRANS LTD ASSETS
--------------
Kazakhstan's state-run oil and gas company Kazmunaygaz has bought
the entire assets of Naftrans Ltd that manages Georgia's Batumi Oil
Terminal. The deal totaled $220 million. The Naftrans assets total
$335 million now. Naftrans also transports oil and oil derivatives
from the Azerbaijan-Georgian border to the Batumi Terminal.
DERSE
SIPDIS
SIPDIS
DEPT FOR EUR/CARC
E.O. 12958: N/A
TAGS: PGOV PREL AJ ENRG
SUBJECT: AZERBAIJAN ENERGY UPDATE, MARCH 2008
1. SUMMARY: This is the first in a series of regular energy updates,
highlighting developments outside of the major off-shore oil and gas
production and transport projects. The information contained in
these reports is drawn primarily from the Azerbaijani local press,
and has not been checked for accuracy. The opinions and policies
expressed in this report are those of the authors, not the U.S.
Government. END SUMMARY.
2. SOCAR HEAD TAKES SECOND JOB
--------------
On March 17, the Azerbaijani Football Federation's Association
(AFFA) elected SOCAR President Rovnag Abdullayev as its new
President. Abdullayev said he would actively contribute to the
development of Azerbaijan's football, seek tax exemption for
football sponsors, and that SOCAR would help all the football clubs
of Azerbaijan,
3. AZERBAIJAN AND GREECE SIGN GAS MOU
--------------
On March 17, GOAJ Energy Minister Natig Aliyev and visiting Greek
Development Minister Christos Philias signed an MOU on energy
cooperation, including the supply of Azerbaijani gas to Greece.
Greece wants to import 1 billion cubic meters annually of
Azerbaijan's gas from Shah Deniz Phase Two (further details septel).
4. DIESEL FUEL TO BE SHIPPED FROM KULEVI
--------------
According to SOCAR, its Kulevi Black Sea Oil Terminal in Georgia has
been fully repaired and SOCAR will start operations there in late
March or early April, when it plans to ship its first tanker with
Azerbaijan's diesel fuel. SOCAR bought the terminal from the
well-known Georgian businessmen, Badri Patarkatsishvili in 2006. It
is repairing the terminal with a syndicated loan of $305 million
from 15 European banks over five years. SOCAR also plans to
transport oil from Kazakhstan via Kulevi.
5. SOCAR TO INVEST $100 MILLION IN GEORGIAN PROJECTS
-------------- --------------
SOCAR intends to invest $100 million in projects in Georgia in 2008.
This will be done via SOCAR Georgia (the local subsidiary). SOCAR
investment in Georgia was $380 million in 2007. The index will
decrease because the repair of the oil terminal in Kulevi has been
completed. SOCAR will build new oil reservoirs totaling $15 million
in Georgia in 2008. An office will be also built for SOCAR Georgia
for $10 million.
6. SOCAR TO START DRILLING FIRST WELL ON UMID FIELD
-------------- --------------
SOCAR President Rovnag Abdullayev said SOCAR would start exploratory
drilling on the offshore Umid gas field soon. The first production
well will be launched in 2009. The gas field reportedly includes
200 billion or 300 billion cubic meters.
7. SOCAR'S PRESIDENT TO VISIT GEORGIA
--------------
SOCAR President Rovnag Abdullayev will visit Georgia next week to
continue talks over Azerbaijani gas exports and to discuss several
other Georgian projects. Talks are expected to focus on the price,
amount and schedule of the supply of Azerbaijani gas. Abdullayev
said Azerbaijan would be able to provide Georgia with the required
amounts completely after its own gas extraction increased to 8
billion cubic meters. In 2008, Azerbaijan is ready to supply up to
500 million cubic meters at $180-200 per 1,000 cubic meters.
Georgian Energy Minister Khetagouri said Azerbaijan and Georgia
would finalize their talks over gas trade soon. He said the sides
were discussing technical details and not the price of the gas.
8. SOCAR GEORGIA - BIGGEST TAXPAYER OF GEORGIA
-------------- --
SOCAR Georgia has been recognized Georgia's largest taxpayer in
2007. This subsidiary of SOCAR was created in December, 2006.
SOCAR invested $380 million in Georgia's economy in 2007.
9. KAZMUNAYGAZ BUYS NAFTRANS LTD ASSETS
--------------
Kazakhstan's state-run oil and gas company Kazmunaygaz has bought
the entire assets of Naftrans Ltd that manages Georgia's Batumi Oil
Terminal. The deal totaled $220 million. The Naftrans assets total
$335 million now. Naftrans also transports oil and oil derivatives
from the Azerbaijan-Georgian border to the Batumi Terminal.
DERSE