An Agreement between SOCAR and KasRosGas was not reached yet

As it was declared by the head of SOCAR's Marketing and Economic Operation Department Elshad Nasirov, SOCAR and KazRosGas did not sign an Agreement on a 4.5 bn cubic meters gas supply, KZ-today correspondent reports from Baku.

Having regard to the information given by E. Nasirov, SOCAR has an Agreement with a Russian company Gasexport (Gasprom subsidiary). "As a main part of gas supply goes from Kazakhstan, Gasexport proposed us to transfer their rights and obligations to KasRosGas. We agreed to do that but currently there is only one Agreement reached with Gasexport. Only the schedule of deliveries is stipulated by the document signed between SOCAR and KasRosGas in Astana," he explained.

4.5 bn cubic meters of gas will be imported from Kazakhstan and Gasexport will supply 1-1.5 bn cubic meters of gas from their reserves in 2004. "5.5-6 bn cubic meters of gas is an optimal volume per year," he said.

An Agreement between SOCAR and Gasexport was signed at the end of 2003. The cost of gas is $52 per 1000 cubic meters.

According to E. Nasirov the contract reached with Itera is currently in force, and Azerbaijan intends to receive gas from this company. "It dose not matter how many parties will take part in gas supplies. It is rather important to receive scheduled volume at a earlier specified price," he stressed.

According to an Agreement signed between SOCAR and Itera in 2001, 4 bn cubic meters of gas are to be delivered to Azerbaijan at $52 per 1000 cubic meters of gas. An agreement is valid up to 2006, but Itera is not able to fulfill obligations according to the document as the government of Uzbekistan transferred the right on gas supplies to Gasprom.

Itera have not settled a question on gas supplies yet.

Gas is transported via Shirvanovk-Kazi-Magomed pipeline.

10-12 bn cubic meters of gas are to be delivered to Azerbaijan yearly according to its internal demand.

Translated by Nataliya Shirinskikh