Azernews.Az

BAKU – Azerbaijan offered Russia during talks on Tuesday to pump at least 1.5 million tons of oil per year through the Baku-Novorossiysk northern route pipeline, the Azerbaijani energy ministry’s spokesman said.

Azer Mansimli said the issue was raised at the meeting of the joint taskforce held in Baku Tuesday when the parties were discussing changes to the 1996 contract on Azerbaijani oil exports through Russia and to the 1995 agreement on electrical energy cooperation.

Regarding the 1996 contract, the proposals made concern the volume of oil transported through the Baku-Novorossiysk pipeline, transit fees and a possible change in fees depending on the bulk of transported crude.

As for the 1995 deal, amendments and addenda on technical and commercial issues are proposed.

"We have not yet reached a specific agreement on [changes to] either of the agreements," Mansimli said. "The working group will continue holding discussions for some time. After the parties reach agreement, the documents will be signed by [Azerbaijani and Russian] governments."

Azerbaijan’s state oil company Socar began exporting crude via the Baku-Novorossiysk pipeline in 1997. Azerbaijani oil is blended in Russia with domestic producers’ crude in the pipelines run by Transneft company and is further exported from the Russian Black Sea port of Novorossiysk as Urals crude.

Azerbaijan exported 1.2 million tons of oil through the Baku-Novorossiysk pipeline in 2010. In January-August 2011 alone, the volume of exported crude amounted to around 1.25m tons.

Under the standing agreement, Azerbaijan is to transport 2m tons via the conduit this year.