TODAY.AZ / Business

SOCAR reorients pumping of its own oil from north to west

18 February 2014 [12:30] - TODAY.AZ
The State Oil Company of Azerbaijan Republic (SOCAR) has started transportation of its oil, which was previously exported via the Baku-Novorossiysk oil pipeline, through the Baku-Tbilisi-Ceyhan oil pipeline, according to a message from SOCAR.

The Baku-Novorossiysk pipeline independently transported oil produced by SOCAR, as well as from onshore fields, developed within joint ventures. In 2013, SOCAR exported 1.75 million tons of oil via the northern Baku-Novorossiysk pipeline compared to 2.06 million tons in 2012.

However, earlier the Russian side decided to terminate the intergovernmental agreement on the supply of oil via the Baku-Novorossiysk pipeline. Nevertheless, it was stated that there was opportunity for further negotiations with the Russian side on the work of the pipeline, in particular in the opposite direction.

Currently SOCAR continues negotiations with the Russian "Transneft" for the continuation of pumping its oil via the Baku-Novorossiysk pipeline, according to the message of SOCAR.

"The start of transportation of oil produced by SOCAR through the Baku-Tbilisi-Ceyhan oil pipeline ensures diversification of export routes of oil," SOCAR said.

In case of no agreement, annually about two million tons of oil will be pumped via the Baku-Tbilisi-Ceyhan oil pipeline. This oil was transported by SOCAR annually via Baku-Novorossiysk.

The company also has the prospective opportunities for transporting up to five million tons of additional volumes of oil via the Baku-Tbilisi-Ceyhan.

The construction of the Baku-Tbilisi-Ceyhan pipeline started in April 2003, and it was filled with oil on May 18, 2005. The shareholders of Baku-Tbilisi-Ceyhan are BP (30.1 percent), AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), TPAO (6.53 percent), Eni (five percent), Total (five percent), Itochu (3.40 percent), Inpex (2.5 percent), ConocoPhillips (2.50 percent) and ONGC (2.36 percent).



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