Azerbaijani state oil company, SOCAR, will continue the transit of oil through the Baku-Novorossiysk pipeline if it is economically feasible, the head of SOCAR Rovnag Abdullayev told reporters.
According to him, under the existing contract, the parties may notify each other six months prior to any changes. Accordingly, the actions of the Russian side were not a surprise for Azerbaijan.
Abdullayev said deliveries will be made in accordance with the existing agreement until the end of this year. Also, the parties will hold a series of meetings and negotiations on commercial terms to transport Azerbaijani oil via the Baku-Novorossiysk pipeline.
In particular, Abdullayev said the sides will focus on the issues of an oil quality bank in the port of Novorossiysk, the ability to transport oil to third countries through it and the possibility of reversal.
SOCAR will continue the supplies if it is economically feasible. "If it is uneconomical, the supply will be halted," Abdullayev said.
He stressed that the Baku-Novorossiysk pipeline is one of the routes for diversification of Azerbaijani oil supplies, but the termination of the process will not create a problem for the country.
"We have the Baku-Tbilisi-Ceyhan route uploaded by 70 per cent, Baku-Supsa and the railroad," Abdullayev said.
"This is a commercial decision and the matter has moved from the political perspective to the economic. The State Oil Company understands the decision of the Russian side," Abdullayev said.
Earlier, Russian Prime Minister Dmitry Medvedev signed a decree on the termination of the agreement with Azerbaijan on the transit of Azerbaijani oil via the Baku-Novorossiysk pipeline.