Baku unwilling to pay higher transit fee for north-bound oil exports
Minister of Industry and Energy, Natig Aliyev, has
said Azerbaijan would not approve raising fees for the transit of
its oil through the Baku-Novorossiysk northern route pipeline
stretching to neighboring Russia.
Recently, Russia offered to alter the tariff for transporting Azerbaijani oil through the pipeline and submitted proposals to the Azerbaijani side for consideration. Russian officials also said it will hold talks with Baku on the possible signing of a new inter-governmental agreement on the delivery of Azerbaijani oil through its territory. Russia explained the suggestion by changes in its legislation and having a difficult delivery schedule at the Novorossiysk port.
Addressing a major Caspian oil and gas conference in Baku, Aliyev recalled that the two countries` governments signed agreement on transporting Azerbaijani oil via the Baku-Novorossiysk pipeline in 1996. The transit fee was set at $15.67 per ton, and Baku is satisfied with this price.
The minister said Azerbaijan is content with the current fee due to the fact that all transportation-related costs had been included in it. He added that Russia`s legislative changes should not affect the oil transit price.
The agreed volume to be delivered through the Baku-Novorossiysk pipeline for this year is 2.5 million tons. The 1996 agreement envisaged the transportation of up to 5m tons per year.
Until 2008, the pipeline had been operated by the BP-run consortium, AIOC, which then reassigned it to Azerbaijan`s state oil company SOCAR. Partners in AIOC initially had no plans to transport oil through the conduit, but due to the unrest in Georgia in August 2008, and the standstill of the BTC pipeline exporting Azerbaijan`s crude via the neighboring South Caucasus republic, the AIOC partners were forced to resume transits.
Recently, Russia offered to alter the tariff for transporting Azerbaijani oil through the pipeline and submitted proposals to the Azerbaijani side for consideration. Russian officials also said it will hold talks with Baku on the possible signing of a new inter-governmental agreement on the delivery of Azerbaijani oil through its territory. Russia explained the suggestion by changes in its legislation and having a difficult delivery schedule at the Novorossiysk port.
Addressing a major Caspian oil and gas conference in Baku, Aliyev recalled that the two countries` governments signed agreement on transporting Azerbaijani oil via the Baku-Novorossiysk pipeline in 1996. The transit fee was set at $15.67 per ton, and Baku is satisfied with this price.
The minister said Azerbaijan is content with the current fee due to the fact that all transportation-related costs had been included in it. He added that Russia`s legislative changes should not affect the oil transit price.
The agreed volume to be delivered through the Baku-Novorossiysk pipeline for this year is 2.5 million tons. The 1996 agreement envisaged the transportation of up to 5m tons per year.
Until 2008, the pipeline had been operated by the BP-run consortium, AIOC, which then reassigned it to Azerbaijan`s state oil company SOCAR. Partners in AIOC initially had no plans to transport oil through the conduit, but due to the unrest in Georgia in August 2008, and the standstill of the BTC pipeline exporting Azerbaijan`s crude via the neighboring South Caucasus republic, the AIOC partners were forced to resume transits.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!