Azerbaijan, Russia sign agreement to increase gas supplies in 2011

The Sate Oil Company of the Azerbaijan Republic (SOCAR) and Russia's gas monopoly Gazprom have signed a supplement to the agreement on gas supplies. Under the document, Azerbaijan will increase gas export to Russia to 2 billion cubic meters per year since 2011 and over 2 billion cubic meters per year since 2012, according to Gazprom. The agreement was signed during Russian President Dmitry Medvedev 's official visit to Azerbaijan.

"At today's meeting with our Azerbaijani colleagues, SOCAR President Rovnag Abdullayev, we analyzed the course of executing the gas supply contract for January-August this year, opportunities for the development of our relations and agreed on a new increase in purchase volumes. The document fully complies with our basic contract, which has no upper ceiling for the Azerbaijani gas supplies volume. The territorial proximity, the lack of transit zones and the availability of an existing pipeline infrastructure makes the expansion of the Azerbaijan- Russia gas cooperation more commercially viable option for both partners," Gazprom CEO Alexei Miller.

The medium-term contract on purchase-sale of Azerbaijani gas to Russia (with the possibility of extension) was signed between SOCAR and Gazprom in Baku Oct. 14. It covers 2010-2014. Under the contract, the Azerbaijani side will annually supply gas amounting to no less than 500 million cubic meters to Russia. The contract did not specify a limit to the gas supply volume. SOCAR will notify the opposite side of the amount which the company can deliver for the next six months.


/Trend/