Major events in Caspian countries' oil and gas industry for last week (Feb.27-March 3)

Azerbaijan, Russia finalise amendments to Baku-Novorossiysk pipeline agreement Azerbaijan and Russia have almost completed the preparation of amendments to an agreement on oil transportation relating to the Baku - Novorossiysk pipeline, Azerbaijani Industry and Energy Minister Natiq Aliyev said at a meeting with members of the Caspian-European Integration Business Club (CEIBC). Changes to the agreement envisage the possibility for third parties' transportation of oil through this pipeline, as well as a tariff reduction, depending on the increase d level of pumping. The minister did not specify the time frame for approval of changes to the agreement. To date, the agreement between Azerbaijan and Russia on oil transportation negotiates clearly states the fact that the Baku-Novorossiysk oil pipeline can only transport oil of Azerbaijani origin. Cancellation of this paragraph will make it possible to transport oil of other countries such as Kazakhstan or Turkmenistan, currently passing through Azerbaijan. Azerbaijan, Turkmenistan and EU to support Southern Gas Corridor Azerbaijan, Turkmenistan and the EU are preparing two documents that will allow them to take delivery of the Caspian and in particular Turkmen gas to Europe, Azerbaijani Industry and Energy Minister Natiq Aliyev said at a meeting with members of the Caspian-European Integration Business Club (CEIBC). He said Azerbaijan, Turkmenistan and the European Union are preparing a political document to support the Southern Gas Corridor, as well as an inter-governmental agreement on Trans-Caspian gas pipeline. This should take place before the end of the year. Georgia transfers gas pipeline network to SOCAR management The Finance and Economy Ministry of Adjara handed the gas pipelines built in the Adjaran villages of Bobokvati, Khutsubani, Kveda, Sameba and Ochkhamuri over to the management of the SOCAR Georgia Gas Company as part of the programme of assisting the villages, the ministry said. The company will operate the system for 49 years and was instructed to commission the gas pipeline within six months. In addition to the gas pipeline in Kobuleti, the ministry also transferred an 11-kilometre long highway in the Khelvachauri municipality. SOCAR Georgia Gas should fulfill its obligations to the state before spring 2013. Fuel rises in price in Georgia for second time during month The fuel rose in price in Georgia for the second time during the last two weeks. After a liter of fuel price increased by an average of five tetri (approximately three cents), the players of the Georgian market of oil products raised the price again by five tetri. The representatives of the Georgian Union of Importers, Exporters and Manufacturers of Petroleum Products think that the situation on international markets, where rise in prices is observed affects the rise. Kazakhstan reduces oil production forecast for 2012 Kazakhstan adjusted its forecast for oil production volume for 2012 to 80 million tons compared to the planned 83 million tons, the country's Economic Development and Trade Minister Bakytzhan Sagintayev said. Kazakh National Fund to provide $4 billion loan for Kashagan oil and gas field The Kazakh National Fund will provide the Kazakh National Oil and Gas Company KazMunaiGas with a $4 billion loan for financing Kashagan oil and gas field in 2013-2015, the Kazakh President's press-service reported. "The decision on a $4 billion bonded loan ...was taken for supporting Kashagan project. It is planned that KazMunaiGas will be financed in two tranches in 2013 and 2015," the report said. Lukoil increases Kandym's resource base in Uzbekistan Russia's Lukoil has increased the resource base of Kandym block in Uzbeistan, as a result of exploration work on the site, a company statement said. According to Lukoil Overseas (Lukoil's operator of international upstream projects), the block's area covers1.142 million square kilometers, and the resource base during entry into the project is 255 million tons of equivalent fuel. A 2D seismic survey of 1,300 running kilometers was carried out as part of the project; the geological structure of the block was clarified; the area of deposits under study was increased; and prospects of growth stocks - expected to exceed 60 million tons of fuel - were defined. Uzbekistan launches gas complex construction Uzbekneftegaz together with the Singaporean Indorama Group has launched the a project to build a gas chemical complex with a capacity of 400,000 tons of polyethylene at the Mubarek Gas Processing Plant in the Kashkadarya region. The project worth more than $2.5 billion will be financed by Uzbekneftegaz, and loans from the Uzbek Reconstruction and Development Fund and international financial institutions, and investments by the Singaporean company. The construction period is three years. The commissioning is scheduled for late 2015.