Baku, Fineko/abc.az. The State Oil Company of Azerbaijan (SOCAR) does not reduce pace of negotiations with Turkey about conditions of supplies and transit of natural gas.

SOCAR reports that already in August next talks will be conducted between SOCAR and Turkey’s pipeline company Botas in Nakhchivan Autonomous Republic. Their subject is volume and price of Azeri gas for Turkey and issues of its transit through this country’s territory.

“An interest to buy Azeri gas is displayed by Russia, Iran, Syria and a range of other European states,” SOCAR says.

Minimum volume of demand is estimated in 7-16 bn cu m and maximum one is almost not restricted and depends only on capacity of Azerbaijan whose gas resources are estimated in at least 2 trillion cu to extract it.

On 10 July, SOCAR president Rovnag Abdullayev conducted negotiations in Turkey with this country’s minister of energy & natural resources Taner Yildiz. He also met with Botas management of to discuss co-operation and realization of regional projects. In the meetings in Turkey it was also discussed SOCAR’s activity in this country and commercial issues of Azeri gas supplies (including within Stage 2 of Shah Deniz Project).

SOCAR continues dreary negotiation process with Turkey’s Botas about a new gas price for Turkey within Phase 1 of Shah Deniz Gas Project (Azerbaijani sector of the Caspian Sea).

Vagif Aliyev, the head of the SOCAR Investment Department, says that the SOCAR’s major goal in the course of negotiations with Botas is to obtain price formula linked with oil prices at world market. The Turkish market applies price formulae connected with oil prices for Russian and Iranian gas.

“We don’t want to talk of any concrete figure. We want application of gas price change depending on change of prices for oil. Azerbaijan wants to receive maximum price for its gas that would conform to existing prices for gas at the Turkish market,” he said.

The SOCAR representative added that averaged gas price at the Turkish market on formula of dependence on oil price existed 6 months ago totaled $320-330 per 1,000 cu m.

“Now it will increase taking into account oil prices at the level of $70 per barrel,” Aliyev said.

The new price for gas of Shah Deniz field for Turkey supplied since 15 April 2008 should be calculated on new formula. Currently it does not exceed $120 per 1,000 cu m.

20.07.2009 09:15