Baku, Fineko/abc.az. Azerbaijan and Turkey can agree on a new price of Azeri gas for the latter until the end of the year.

Gulmammad Javadov, deputy minister for industry & energy, says that in any case the issue is to be solved in the near future.

“But as the matter is commercial each party follows its interests. But in any case decision on the occasion should be made before the end of 2009,” he said.

In the 8 August negotiations in Nakhchivan Rovnag Abdullayev, the president of the State Oil Company of Azerbaijan (SOCAR), failed to agree with Turkish minister of energy & natural resources Taner Yildiz about new price of Azeri gas for Turkey.

The parties only covered commercial issues of gas production within the first and second stages of development at gas condensate field Shah Deniz (Azerbaijani sector of the Caspian Sea).

Today Azerbaijan’s gas resources are estimated in at least 2 trillion cu m (under new estimates, up to 5 trillion cu m).

At the same time 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.

12.08.2009 12:19