SOCAR increases oil pumping via Baku-Novorossiysk

Azerbaijan is planning to increase oil transport via the Baku-Novorossiysk pipeline to 2.5 million tons, compared to 1.3 million tons in 2008, the State Oil Company of the Azerbaijani Republic (SOCAR) Marketing and Economic Operations Department Deputy Chief Nuru Guliyev said. The pipeline is important for diversification of transport routes of Azerbaijani oil.

Azerbaijani international operation company was operator of Baku-Novorossiysk pipeline by late 2007 delivering it to SOCAR. AIOC partners do not intend to transport oil via this route in future. But AIOC partners (participants of Baku-Tbilisi-Ceyhan) has to resume export on this route because of events in Georgia in August of 2008 and ceasing of Baku-Tbilisi-Ceyhan pipeline in this period.

Major condition is bank of oil quality on the Russian terminal to increase oil pumping via Baku- Novorossiysk route, SOCAR (the State Oil Company of Azerbaijan) said. Transneft company (the Russian oil transportation monopolist) said about readiness for giving a bank of oil quality in case of 5 million tons pumping per year.

Azeri Light oil is planned to pump via Baku-Novorossiysk pipeline to reach volumes of transportation via this route to 5 million tons. SOCAR is ready for pumping from total volume of 2 million tons of light oil.

Talks are being held with participants of the Azerbaijani international operation company (BP operator) extracting light oil on Azeri-Chirag-Guneshli block of fields to provide the rest volume - 3 million tons.

Presently, all partners of the project except for Exxon and Devon companies transporting oil via railroad to Batumi port deliver its oil via Baku-Tbilisi-Ceyhan pipeline.

Presently, Azerbaijan gets Urals oil in outlet (in Novorossiysk port) while oil transportation via Baku- Novorossiysk pipeline because of mixing with oil of other producers.

In early this week Russia stated about the possibility of creation the oil quality bank in Novorossiysk. Russian Transneft says applying quality bank system for the oil shipped from Novorossiysk depending on its type will take 3 to 8 months.

Applying quality bank of oil in Novorossiysk port does not require construction of additional reservoirs to keep crude. Launching quality bank requires also applying co-efficient of value of oil by different producers depending on crude quality.

/Trend Capital/