Tag Archives: Azerbaijan

Azerbaijan’s SOCAR to build terminal in Benin

NOV. 15 2016 (The Conway Bulletin) — During an official visit, a delegation from SOCAR, Azerbaijan’s state owned energy company, said it was interested in building an oil terminal in Cotonou, the capital of Benin. The SOCAR officials didn’t say why they were interested in building an oil terminal in Benin. Azerbaijan’s energy minister Natig Aliyev also visited Burkina Faso’s PM Paul Kaba Thieba and discussed potential cooperation between SOCAR and SONABHY, the coun- try’s state energy company.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 305, published on Nov. 18 2016)

 

Business Comment: Azerbaijan’s hunt for partners

NOV. 18 2016 (The Conway Bulletin) — Despite slowing domestic production and overall exports, Azerbaijan is stubbornly reaching out to building partnerships with other countries to sell its oil.

Last week, the government and state-owned SOCAR mulled the launch of a pilot programme with Egypt to send 2m barrels of oil to refine in Egyptian plants. In recent weeks, Azerbaijan also planned to send oil to Belarus and Ukraine and to build an oil terminal in Benin, of all places.

Sending oil to its former Soviet sisters Belarus and Ukraine would probably be feasible from a technical point of view, but analysts have shown that Azerbaijan might just not have enough oil to provide for its domestic demand and for the pipeline contracts it already has in place.

SOCAR is sending increasingly less oil through its main export pipelines, posting a 4% decrease via Baku-Tbilisi-Ceyhan, an 11% decrease via Baku-Supsa and an 11% decrease via Baku-Novorossiysk in the first ten months of 2016.

And in the first three quarters of the year, SOCAR posted an 8.7% fall in production due to the drop in the price of oil.

SOCAR’s poor performance in 2016 begs the question of whether the company’s bullish plans to export oil to new destinations and invest in West Africa make economic and financial sense. If there is any sense in this at all, it is difficult to find.

With oil prices still hovering around $50/barrel, SOCAR and its multinational partners in Azerbaijan will maintain low production figures, and this will certainly not boost exports.

The question is, now, who does Azerbaijan turn to to boost its client base.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 305, published on Nov. 18 2016)

 

Court jails IS activists in Azerbaijan

NOV. 16 2016 (The Conway Bulletin) — A court in Baku jailed seven men for fighting for the radical IS group in Syria. Countries in Central Asia and the South Caucasus have been fighting to contain a recruitment drive by IS in the region. The men were jailed for between 2-1/2 and 14 years. They had been arrested once they returned home from fighting with IS.

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(News report from Issue No. 305, published on Nov. 18 2016)

 

Russneft adds assets in Azerbaijan

NOV. 15 2016 (The Conway Bulletin) — Ahead of a planned IPO in Moscow, Russian energy company Russneft said it will add oil and gas assets in Azerbaijan to its balance sheet in 2017. The 15b cubic metres of gas and 11.2m tonnes of oil holdings in Azerbaijan were owned by Global Energy Azerbaijan. Russian billionaire Mikhail Gutseriev owns a majority share in Russneft and owned Global Energy Azerbaijan before it was bought by Russneft in 2014. Oil trading giant Glencore owns a minority stake in Russneft.

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(News report from Issue No. 305, published on Nov. 18 2016)

 

EU wants new deal with Azerbaijan

NOV. 11 2016 (The Conway Bulletin) — The European Council, the EU’s political core, has said it wants to renegotiate a new bilateral deal with Azerbaijan. This is important because it sets the tone of subsequent talks between the EU and Azerbaijan. Azerbaijan and the EU have rowed over human rights.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 305, published on Nov. 18 2016)

 

Azerbaijan increases its cotton harvest but analysts doubt ambitious target

NOV. 7 2016 (The Conway Bulletin) — Azerbaijan harvested 50,400 tonnes of raw cotton in 2016, a 66% increase on last year, its statistics committee said.

The rise is important to the Azerbaijani government because with oil prices low and the economy tipping into recession it has revived promises to develop cotton.

In the Soviet Union, before its second oil boom in the late 1990s and early 2000s, cotton had accounted for up to 25% of Azerbaijan’s income. Investment, though, dropped away once oil became the focus.

“Next year, cotton production will lead to the creation of more than 100,000 jobs. As we expand our acre- age, this figure will grow,” President Ilham Aliyev said during a cotton- development conference in Sabirabad, Azerbaijan, on Sept. 17.

Azerbaijani authorities want to expand the cotton fields within three years by 500%, from the current 50,000 hectares. Even if Azerbaijan hits this target it will still be a fraction of the size of the world’s major cotton producing countries. Uzbekistan has around 1.25b hectares of cotton fields.

Economists, though, are sceptical on whether white gold – as cotton is dubbed in Azerbaijan – can fill the gap left by the drop in energy prices. Last year, they pointed out, cotton produced earned just $29m.

Ziya Mammadbayli, a Baku-based analyst, said that Azerbaijan didn’t even have the capacity to pick a bigger cotton harvest without forced labour.

“With low average salaries and without new equipment the has government started to send primary school teachers and doctors to cotton fields to pick it,” he told The Bulletin.

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(News report from Issue No. 304, published on Nov. 11 2016)

Freedom House criticises Azerbaijan

NOV. 4 2016 (The Conway Bulletin) —  The US-based Freedom House accused the Azerbaijani government of harassing two lawyers who have represented a number of clients that it said were later imprisoned for political reasons. Robert Herman, a Freedom House vice president said that Azerbaijan “should end its campaign of innuendo and threats against Elchin Sadiqov and Fariz Namazli, two of the few lawyers in the country who dare to represent political prisoners and bring attention to government wrongdoing.”

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(News report from Issue No. 304, published on Nov. 11 2016)

 

Azerbaijan to supply oil to Egypt

NOV. 8 2016 (The Conway Bulletin) — A source in SOCAR, Azerbaijan’s state-owned energy company, said that the company will supply Egyptian refineries with 2m barrels of oil annually, the Amwal Al Ghad magazine reported. Last week, Egypt and Azerbaijan agreed on a supply contract after Saudi Aramco said it would halt shipments to Egypt indefinitely.

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(News report from Issue No. 304, published on Nov. 11 2016)

Azerbaijan completes railway construction

NOV. 7 2016 (The Conway Bulletin) — Azerbaijan completed an 8.3km extension of a railway line to the Iranian border, a vital component of the North-South Transport Corridor that will link India with Europe and Russia. Media reported that the rail link was due to open next year. This is the only rail link between Azerbaijan and Iran. Relations between the two countries have much improved over the past couple of years, mainly due to the relative moderate Hassan Rouhani being elected in 2013 as Iranian leader and the lifting of most of the sanctions hanging over Iran. The North-South Transport Corridor is being developed to cut transport costs and is considered vital to boosting regional trade.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 304, published on Nov. 11 2016)

Azerbaijan’s SOCAR to build chemical park in Turkey

NOV. 10 2016 (The Conway Bulletin) — SOCAR Turkey Enerji, the Turkish subsidiary of Azerbaijan’s state owned energy company, said it wants to build a new chemical industrial park in Turkey. SOCAR Turkey Enerji and SOCAR Turkey Petrokimiya already own a controlling stake in Petkim, a petrochemical complex in Izmir, western Turkey.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 304, published on Nov. 11 2016)