Azernews.Az

By Aynur Jafarova

Azerbaijan is planning to increase its oil extraction in 2014, Energy Minister Natig Aliyev said.

He added that, Azerbaijan is predicted to extract 43 million tons of oil in 2014.

"Our main goal is to maintain the production volume at the level of 40-45 million tons," he said. "The necessary work is being carried out."

He went on adding that: "Thus, it was predicted to produce a little more than 41 million tons of oil in 2013, but the actual volume exceeded 43 million tons of oil."

The main oil volume fell to the block of oil and gas fields Azeri- Chirag-Gunashli (ACG) and Shah Deniz condensate field, developed jointly with foreign partners.

As for gas production, Aliyev said that Azerbaijan has achieved great successes in this area. The production volume amounted to 29 billion cubic meters in 2013. This figure will increase in the future.

Regarding the Baku-Novorossiysk pipeline, the Energy minister noted that continuation of oil pumping via the pipeline is in line with Azerbaijan's plans to diversify its supply routes.

"Each country intends to diversify its oil supply routes. From this point of view, continuation of oil pumping via the Baku-Novorossiysk pipeline meets our interests," he said.

The Baku-Novorossiysk pipeline (also known as the Northern Route Export Pipeline) is a 1,330-kilometer oil pipeline, which runs from the Sangachal Terminal near Baku to the Novorossiysk terminal at the Black Sea coast in Russia.

Azerbaijan's state Energy Company SOCAR and Russian oil pipeline monopoly Transneft - the operator of the Baku-Novorossiysk pipeline's Russian section - signed a new deal on the continuation of oil pumping via the pipeline on February 18.

The Baku-Novorossiysk pipeline transported the oil produced by SOCAR independently, as well as from onshore fields developed within joint enterprises.

The agreement will ensure the transportation of Azerbaijani oil via the Baku-Novorossiysk for one year, until February 2015, and the beginning of pumping oil through the Baku-Novorossiysk is expected after February 21.

According to forecasts, SOCAR will pump 1.55 million tons of oil in total in both directions by late 2014, of which 1.02 million tons will fall on the Baku-Novorossiysk pipeline.

The contract for transiting Azerbaijan's oil via the Baku-Novorossiysk pipeline through the territory of its giant northern neighbor, in effect for 17 years, was revoked in early May.