Tag Archives: Azerbaijan

BP-Exxon row slows development at Azerbaijani field

JULY 1 2016 (The Conway Bulletin) — A row between BP and Exxon Mobil risks delaying an agreement between members of a consortium developing Azerbaijan’s largest oil field, Azeri-Chirag-Guneshli (ACG), sources told Reuters news agency.

Any delay in developing the field will be a major embarrassment for BP, the lead operator of the project, and a disappointment to Azerbaijan which is looking to boost oil production.

“BP and Azerbaijan agree to the new terms but Exxon keeps rejecting them time and time again,” Reuters reported quoting an anonymous source with knowledge of the sector and the companies.

“It has been going on for almost two years, with Exxon insisting on better terms.”

In May, the Azerbaijani government said it had submitted its proposal for a new contract to all consortium members. No details of the contract, or its sticking points, have been released.

ACG was dubbed the “contract of the century” when it was first signed in September 1994.

The consortium shareholders are BP (35.8%), Exxon (8%), SOCAR (11.6%), Chevron (11.3%), Japan’s INPEX (11%), Statoil (8.6%), Turkey’s TPAO (6.8%), Japan’s ITOCHU (4.3%) and India’s ONGC (2.7%).

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(News report from Issue No. 288, published on July 8 2016)

Rouhani to visit Azerbaijan

JULY 5 2016 (The Conway Bulletin) — Iran’s President Hassan Rouhani will visit Azerbaijan in August, official media reported, for talks likely to focus on energy and transport issues. The neighbours share a 756km border and jurisdiction over the Caspian Sea. Mr Rouhani last visited Baku in November 2014, before a raft of international sanctions were lifted.

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(News report from Issue No. 288, published on July 8 2016)

Obama and Putin discuss Azerbaijan and Armenia

JULY 7 2016 (The Conway Bulletin) — US President Barack Obama and his Russian counterpart Vladimir Putin said they would intensify efforts to resolve the stand-off between Azerbaijan and Armenia-backed forces over the disputed region of Nagorno-Karabakh. The White House said Mr Obama and Mr Putin discussed the South Caucasus during a wide-ranging telephone conversation.

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(News report from Issue No. 288, published on July 8 2016)

Azerbaijan’s SOCAR reports loss

JULY 1 2016 (The Conway Bulletin) — Azerbaijan’s state-owned energy company SOCAR posted a loss of 1.8b manat ($1.2b) in 2015 because of low oil prices, its first loss for over a decade. SOCAR said it will potentially turn a profit this year because of a sharp depreciation of the manat in December 2015, when the Central Bank ditched the peg to the US-dollar.

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(News report from Issue No. 288, published on July 8 2016)

Azerbaijan invests in pipelines

JUNE 29 2016 (The Conway Bulletin) – The total cost of the new pipelines that will form the so-called Southern Gas Corridor amounts to $6.1b, according to Vagif Aliyev, head of investment at SOCAR, Azerbaijan’s state-owned energy company. TANAP, which will run through Turkey, will cost $4.9b, out of which Azerbaijani companies will contribute $820m, according to Mr Aliyev. The Trans-Adriatic Pipeline (TAP), which will connect Turkey to Italy, has a price tag of $1.2b, and will be completed in the next three years.

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(News report from Issue No. 287, published on July 1 2016)

Italy accuses ex-MP taking $2.6m Azerbaijan bribe

JUNE 25 2016 (The Conway Bulletin) – The Italian authorities accused Luca Volontè, a former MP in Italy’s parliament and also in the Parliamentary Assembly of the Council of Europe (PACE), of taking a €2.3m ($2.6m) bribe in 2012-14 to vote down a resolution to condemn Azerbaijan for mistreating political prisoners.

This is an important case for Azerbaijan as, if proved, the allegations will once again highlight a culture of corruption in Azerbaijan.

Mr Volontè’s lawyers denied the allegations of bribery and money laundering.

The motion to condemn Azerbaijan’s treatment of 85 prisoners, described as political prisoners, was voted down in Jan. 2013 by PACE representatives 128 to 79.

Now Italian prosecutors said Mr Volontè, who organised the voting down of the motion, took €2.3m from Azerbaijani companies linked to the government. The prosecutors’ investigation said Baktelekom, a Baku-based telecoms company, made 18 payments between 2012 and 2014 to companies linked to Mr Volontè through a number of different banks.

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(News report from Issue No. 287, published on July 1 2016)

Azerbaijan’s SOCAR exports gas to Turkey

JUNE 28 2016 (The Conway Bulletin) – SOCAR Gas, a Turkey-based subsidiary of Azerbaijan’s state-owned energy company, said it sold around 330m cubic metres of gas in Q1 2016 to the Turkish domestic market. The Turkish government decided to buy up to 1.2b cubic metres of SOCAR’s gas this year. Previously, SOCAR gas exports to Turkey were mostly destined to the Petkim petrochemical plant, in which it owns a majority stake.

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(News report from Issue No. 287, published on July 1 2016)

Azerbaijani and Uzbek weightlifters face ban

JUNE 27 2016 (The Conway Bulletin) — The Azerbaijani and Uzbek weightlifting teams are both facing a ban from competing in the Olympic Games in Rio de Janeiro this summer after their athletes failed a series of drugs test, media reported. Weightlifters from Russia and Kazakhstan have already received a ban.

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(News report from Issue No. 287, published on July 1 2016)

Azerbaijani woman has wrong leg amputated

JUNE 24 2016 (The Conway Bulletin) — An Azerbaijani woman who went into hospital to have a gangrenous leg amputated woke up after the operation to find that the surgeon had cut off the wrong one.

Tarlan Aliyeva, 82, discovered that instead of the inflamed left leg, the right one had been cut off. The surgeon who performed the operation couldn’t be found. He had fled the hospital.

“The doctors did this to me,” a tearful Ms Aliyeva, now a double amputee, was shown on a Youtube video as saying.

“The doctors did that to me because of money. See, they cut it from the root. They are not doctors. If they were, I wouldn’t be in this situation now.”

The case has gripped Azerbaijan with many people reacting with anger at the incompetence of, and corruption in the Azerbaijani medical profession.

“By law, most medical services are free of charge but in reality, you can never get a proper service without bribing,” Ilkin, a 38-year old IT specialist from Baku, told the Conway Bulletin

Reacting to the news, the health ministry has established a special commission to investigate the case jointly with law enforcement authorities.

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(News report from Issue No. 287, published on July 1 2016)

Azerbaijan focused Anglo Asian aims to cash in on gold price rise

JUNE 29 2016 (The Conway Bulletin) – Looking to cash in on a spike in gold prices triggered by Brexit, Azerbaijan- focused miner Anglo Asian said it would sell the remainder of its 2016 production as futures.

Gold prices have risen 5% in the past week because of thinning confidence linked to Britain’s referendum last week which voted unexpectedly to leave the European Union, in a so-called Brexit, triggering a wave of uncertainty across the world.

The Anglo Asian deal fixed a price corridor of $1,200-$1,426/ounce for their future gold production for the next six months.

Reza Vaziri, Anglo Asian’s CEO, said that the deal, which could secure between $21.6m and $25.7m, will be beneficial for the company, which has had to cope with low gold prices over the past few months. It accumulated debt over the past few months which it now has to pay off.

“This is a win-win transaction for us,” Mr Vaziri said.

“Whilst protecting the downside in the current volatile gold market over the coming six months given Anglo Asian’s debt service payments, we also enjoy considerable exposure to any further increase in the price of gold during this period.”

Spot gold prices closed at $1,321.9/ounce on June 30 compared to $1,257.6/ounce on June 23.

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(News report from Issue No. 287, published on July 1 2016)