Tuesday, August 13, 2013

Russia, Azerbaijan Agree on Oil, Gas JV as Putin Visits Baku. According to Aliyev, his country’s defense industry cooperation with Russia is worth $4 billion and keeps growing

MOSCOW, August 13 (RIA Novosti) – The Russian and Azerbaijani state oil companies on Tuesday agreed to establish a joint venture on a parity basis to prospect and produce oil and gas in Russia and Azerbaijan and in other countries as Russian President Vladimir Putin paid a one-day working visit to Baku.

Energy Cooperation
During Putin’s visit – designed to discuss a wide range of bilateral issues, including trade, energy, transportation and the Nagorno-Karabakh conflict – Rosneft reported that it had also agreed with the State Oil Company of Azerbaijan Republic (SOCAR) to jointly use some pipelines and terminals to optimize supplies to consumers.

A cooperation agreement was signed by Rosneft and SOCAR respective chiefs, Igor Sechin and Rovnag Abdullayev, in the presence of Putin and Azerbaijani leader Ilham Aliyev. The two oil giants also said they would cooperate in marketing and sales of oil, gas and oil products.
Rosneft has shown interest in joining the development of the Apsheron gas field in the Caspian Sea, whereas Russia’s largest privately held oil company, LUKoil, is participating in the development of the Shah Deniz gas field in the Caspian Sea and owns a network of gasoline-filling stations in Azerbaijan.
LUKoil CEO Vagit Alekperov is accompanying Putin on his visit to Azerbaijan, just as Rosneft chief Sechin is.
Last year, Azerbaijan delivered 1.55 billion cubic meters of natural gas to Russia.
Bilateral interaction is set to be expanded in the military and technical sphere, and border activities and between the two countries’ emergencies ministries. Experts polled by RIA Novosti have said Moscow has yet failed to make Baku its ally rather than partner.

Military and Emergencies Cooperation
Azerbaijani President Aliyev told reporters after a meeting with Putin that Moscow and Baku planned to continue military and technical collaboration.
According to Aliyev, his country’s defense industry cooperation with Russia is worth $4 billion and keeps growing. Azerbaijan is among the top buyers of Russian arms and other military equipment, which, Aliyev said, is considered the best in the world.
The two countries’ emergencies ministries signed a cooperation plan for 2013-2015, and a new program to train Azerbaijani emergencies staff will soon be worked out, a Russian ministry spokeswoman said.

Putin and Aliyev also touched upon the issue of Nagorno-Karabakh.
Relations between Azerbaijan and Armenia have been strained for over two decades, since the conflict over Nagorno-Karabakh, a predominantly ethnic Armenian region, first erupted in 1988. The region then claimed independence from Azerbaijan to join Armenia.
“During the talks we touched upon urgent international issues, including, of course, the Nagorno-Karabakh issue,” Putin said. “Russia has been actively contributing to the soonest settlement of the conflict, which is only possible through political means.”
Aliyev said the conflict may only be solved on the basis of international law.
More than 30,000 people are estimated to have died on both sides between 1988 and 1994, when a ceasefire was agreed. Nagorno-Karabakh has remained in Armenian control, and tensions between Azerbaijan and Armenia have persisted.
  • The conflict over Nagorno-Karabakh is mediated by the OSCE Minsk Group, which comprises the United States, Russia and France.

1 comment:

  1. Putin's Visit to Baku Highlights Russia's 'Clout'...

    President Vladimir Putin met with his Azeri counterpart Ilham Aliyev in Baku on Tuesday in what proved to be a fruitful visit, but one which led some to express caution about Russia’s influence in the republic.

    The visit came just a few weeks before presidential elections are set to take place in the South Caucasian oil-fueled republic, and it was widely seen as a sign that Azerbaijan is seeking to stay close to Moscow after deciding in June to cancel participation in the Nabucco pipeline — a project developed by the European Union in order to diversify gas deliveries from Russia.

    And as if to prove that the visit was equally important to Russia, six government ministers also attended, including Energy Minister Alexander Novak and Defense Minister Sergei Shoigu, as well as heads of Russia’s biggest oil companies, Rosneft and Lukoil.

    Putin praised Azerbaijan’s efforts to preserve the Russian language and culture and said he was pleased with the development of bilateral relations between the two countries.

    “I would like to emphasize once more that Azerbaijan takes the development of Russian very seriously. … Russian schools and university branches operate here quite actively,” he said.

    Echoing Putin’s sentiments, Aliyev said that Russia and Azerbaijan share similar opinions on a wide range of issues, and he thanked Putin for bringing along such a “representative” delegation.

    Igor Sechin, head of Russia’s top crude producer, Rosneft, and Rovnag Abdullaev, head of the State Oil Company of Azerbaijan signed a broad cooperation agreement on join exploration, extraction and mutual deliveries of oil. The agreement provides for asset swaps and joint production.

    After the agreement was signed, Sechin told reporters that an array of different areas would be developed, including “reciprocal deliveries, swap operations and opportunities for the use of joint infrastructure.”

    Despite the positive results of the meeting, however, some say the buddy-buddy relationship on display was cause for concern.....etc...

    Read more: http://www.themoscowtimes.com/business/article/putins-visit-to-baku-highlights-russias-clout/484464.html#ixzz2bvIvjg85
    The Moscow Times


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