Category: Azerbaijan

  • Turkey to ship 10bn cubic metres of Azerbaijani gas

    Turkey to ship 10bn cubic metres of Azerbaijani gas

    Turkey to ship 10bn cubic metres of Azerbaijani gas

    A senior SOCAR official has briefly outlined agreements between Azerbaijan and Turkey on the purchase, sale and transit of gas.

    Elshad Nasirov, vice-president of state oil company SOCAR, said that under one agreement signed last week Turkey will purchase 6.6bn cubic metres of gas from Azerbaijan per annum, while under a framework agreement on gas transit 10bn cubic metres of Azerbaijani gas will be transported to Europe via Turkey, APA reported.

    “The transit agreement with Turkey signed on 25 October in Izmir envisages the reconstruction and expansion of the existing gas infrastructure,” Nasirov said. He confirmed that the consortium to export gas to Europe, produced as part of stage two of development of Azerbaijan’s Shah Deniz field, would be selected by the end of the year.

    The Nabucco, ITGI and TAP pipeline consortiums have all bid to export Azerbaijan’s gas, while Shah Deniz operator BP has come up with a fourth export option, should none of the three be suitable.

    Elshad Nasirov said, meanwhile, that a new consortium would be created to construct a planned pipeline from the Georgian border to Turkey’s western border.

    “Membership of the consortium will depend on the choice of the government of Azerbaijan and the desire of the companies participating in the Shah Deniz project, while one of the Turkish companies will be nominated by the Turkish government,” Nasirov said.

    He said the choice of route across Turkey for the new pipeline would depend on commercial considerations.

    “In order to transport Azeri gas to Europe we must select the best route. We’re not talking only about Shah Deniz, but also about gas extracted from other deposits in Azerbaijan,” APA reported Nasirov as saying.

    “In the final analysis, the option that brings the greatest economic benefit will be chosen.”

    Shah Deniz costs

    The final investment decision on the second stage of development of the Shah Deniz gas condensate field will be made in 2013, Elshad Nasirov said.

    He confirmed that the first gas from Shah Deniz II would be produced in 2017.

    Meanwhile, BP-Azerbaijan’s chief financial officer, Ian Sutherland, said that BP had increased the cost of developing Shah Deniz, ABC/Fineko reported.

    He told a conference in Baku on Wednesday on “The State Oil Fund’s Role in the National Oil Strategy of Azerbaijan” that $23bn was needed to take gas production in Azerbaijan to 26bn cubic metres per year.

    Earlier cost estimates for Shah Deniz II did not exceed $22bn.

    As part of Shah Deniz II, 16bn cu.m of gas are to be produced per annum. As part of Shah Deniz I, 10bn cu.m are to be produced, although this figure has not been achieved yet.

    Elshad Nasirov reminded journalists today that at present Azerbaijan exports 6.6bn cu.m of gas to Turkey, 1.5bn to Georgia, 400m to Iran and 750m to Greece. Azerbaijan exports gas to Russia too.

    The Shah Deniz consortium consists of BP (operator, 25.5%) StatoilHydro (25.5%), SOCAR (10%), LUKOIL (10%), NICO (10%), Total (10%), and TPAO (9%).

    www.news.az

    via Turkey to ship 10bn cubic metres of Azerbaijani gas : Center for Economic and Social Development (CESD).

  • France’s scramble to grab a role for itself in Armenia

    France’s scramble to grab a role for itself in Armenia

     

    sarkozy sargsyanAn early October visit paid to the Armenian capital Yerevan by French President Nicolas Sarkozy has triggered not only a new predicament in terms of Turkey’s relations with Armenia, but also marked an important turning point regarding France’s regional influence. (more…)

  • Azerbaijan, Turkey Presidents hold phone conversation

    Azerbaijan, Turkey Presidents hold phone conversation

    Azerbaijan, Baku, Oct. 29 / Trend /

    Ilham Aliyev 280709President of Azerbaijan Ilham Aliyev on Saturday made a telephone call to Turkish President Abdullah Gul, the press-service of Azerbaijani President reported.

    The Head of State congratulated Abdullah Gul on his birthday and the Republic Day of Turkey, and wished him robust health and successes in his presidential activities, and the friendly and fraternal people of Turkey prosperity.

    The Turkish leader thanked President Ilham Aliyev for his attention and congratulations.

    The Presidents expressed satisfaction with development of bilateral relations between Azerbaijan and Turkey in all fields.

    They underlined the importance of the Azerbaijani President`s last visit to Turkey and documents signed during the trip for expansion of bilateral cooperation even more.

    The Heads of State expressed confidence relationship between the two countries would continue to strengthen.

    via Azerbaijan, Turkey Presidents hold phone conversation – Trend.

  • BP Azerbaijan head: Gas agreements between Azerbaijan and Turkey to help open Southern Gas Corridor to Europe

    BP Azerbaijan head: Gas agreements between Azerbaijan and Turkey to help open Southern Gas Corridor to Europe

    Azerbaijan, Baku, Oct.28 / Trend E.Ismayilov /

    Gas Pipeline 200407 bigThe Republic of Azerbaijan and the Republic of Turkey have signed a number of key gas export related agreements to enable Turkey to buy gas from Azerbaijan and to transit Azerbaijan gas through Turkey to Europe, official website of the State Oil Company of Azerbaijan (SOCAR) reports.

    According to the report, the documents signed in Izmir (Turkey) on Tuesday, October 25, included an Intergovernmental Agreement (IGA) between the Government of Azerbaijan and the Government of Turkey, Gas Sales Agreements between SOCAR and BOTAS and also between the Azerbaijan Gas Supply Company (AGSC) and BOTAS International Limited (BIL), a Gas Transit Agreement between SOCAR and BOTAS and a Framework Agreement (FA) setting the general terms and conditions for transit of gas sourced from Azerbaijan through the territory of Turkey. The IGA and FA contemplate transit through Turkey either via an upgrade to the existing BOTAS transmission network or via the development of a new-build pipeline across Turkey.

    The execution of the documents was witnessed by the President of the Republic of Azerbaijan H.E. Ilham Aliyev and the Prime Minister of the Republic of Turkey Recep Tayyip Erdogan. The documents were signed by the Minister of Industry and Energy of Azerbaijan Natig Aliyev and the Minister of Energy and Natural Resources of Turkey Taner Yildiz, as well as SOCAR President Rovnag Abdullayev, the President for the Azerbaijan-Georgia-Turkey Region of BP and the Operator of Shah Deniz field, Rashid Javanshir and General Manager of BOTAS Fazil Senel.

    The agreements provide a legal framework to regulate the sale of Shah Deniz gas to Turkey and its transportation to European markets through Turkey, the website reports.

    “We are pleased to finalise the signing of these key agreements between Azerbaijan and Turkey that will lead to Shah Deniz full field development and delivery of Stage 2 gas from Azerbaijan’s giant field in the Caspian Sea to Turkey and European markets. This is a significant step that has been achieved by the two Governments with support from all parties involved including the Shah Deniz consortium. We believe the success of all efforts that have brought us to today’s achievement lies in the close partnership among the three key parties – the Government of Azerbaijan, the Government of Turkey and the Shah Deniz consortium. This partnership has been a key element in everything accomplished so far and will continue to be a driving force to move Shah Deniz to the stage when it will safely and reliably supply Azerbaijan gas to Turkey and Europe,” SOCAR President Rovnag Abdullayev said.

    Speaking on behalf of the Shah Deniz consortium Rashid Javanshir, President for the Azerbaijan-Georgia-Turkey Region of BP, said: “We welcome the successful signing of the Shah Deniz gas sales and transit agreements, and the Inter-Governmental Agreement between Azerbaijan and Turkey. We believe these agreements will help open a Southern Gas Corridor to Europe and link Azerbaijan and Turkey with yet another strategic partnership. They will support the continued development of Shah Deniz 2 project towards a final investment decision and development of Turkey as an energy hub for Europe. The signing of these agreements will also allow Shah Deniz to proceed with its European pipeline selection process, and to confirm gas sales agreements with potential customers. ‪

    On behalf of the co-venturers we would like to congratulate Azerbaijan and Turkey on reaching these extremely important agreements”.

    Shah Deniz Stage 2, or Full Field Development (FFD), is a giant project that will bring gas from Azerbaijan to Europe and Turkey. This will increase gas supply and energy security to European markets through the opening of the new Southern Gas Corridor.

    The project is expected to add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma from Shah Deniz Stage 1. “It is one of the largest gas development projects anywhere in the world,” the website reports.

    Plans for the project include two new bridge-linked offshore platforms; 26 subsea wells to be drilled with 2 semi-submersible rigs; 500 km of subsea pipelines built at up to 550m water depth; additional export capacity in Azerbaijan and Georgia; expansion of the Sangachal Terminal.

    “Proposals for the transportation of gas from the Caspian Sea to Europe are now being evaluated by the Shah Deniz consortium with an award expected around the end of the year,” the report says.

    Proposals were submitted by October 1 from Nabucco, Trans-Adriatic Pipeline and IGI-Poseidon.

    In addition, the Shah Deniz project team are also evaluating a fourth potential export option which would transport gas to markets in South-Eastern Europe through a system of regional existing and future interconnector infrastructure.

    The partners in Shah Deniz are: BP Operator (25.5 per cent), Statoil (25.5 per cent), SOCAR (10 per cent), Total (10 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (9 per cent).

    via BP Azerbaijan head: Gas agreements between Azerbaijan and Turkey to help open Southern Gas Corridor to Europe – Trend.

  • Azerbaijan supports Turkey in the fight against terrorism

    Azerbaijan supports Turkey in the fight against terrorism

    Izmir. Mais Alizadeh-APA. The first meeting of the Turkey-Azerbaijan High-Level Strategic Cooperation Council has taken place in Izmir, Turkey.

    ilham eliyev erdogan

    Speaking at a press conference following the meeting, the Turkish Primer Minister Recep Tayyip Erdogan thanked Azerbaijani President Ilham Aliyev for the first assistance after the earthquake in Van.

    “Today we witnessed very important events. It’s about $5 billion investment. From this investment will benefit both Turkey and Azerbaijan”, – Recep Tayyip Erdogan said.

    Turkish Primer Minster said that the relations between the two countries entered a new phase and these relations will become even stronger.

    Recep Tayyip Erdogan said that they want “a speedy and just solution to the Nagorno-Karabakh conflict”. “A just solution to the problem” will lead to a great development in the region. This is not only Azerbaijan’s problem but also problem if Turkey and the Turkic world, in general”.

    Turkish Prime Minister noted that the second meeting of the Turkey-Azerbaijan High-Level Strategic Cooperation Council will be held in Azerbaijan, next year and expressed hope for a full agenda of this meeting.

    Speaking at a press conference, Azerbaijani President Ilham Aliyev expressed his condolences to the Turkish people, on behalf of the Azerbaijani people, in connection with the terrible earthquake. “Today the Azerbaijani people is close to the Turkish people in such day. 20 years of our independence – years of the Turkey-Azerbaijan brotherhood. Turkey always has been close to Azerbaijan in bad days. Turkey-Azerbaijan unity based on historical grounds, constantly gaining strength. Today Turkey and Azerbaijan are close in all matters, support each other, implement joint projects and take initiatives”, – Azerbaijani President said.

    ”The agreements reached at the meeting of the High-Level Strategic Cooperation Council, and signed documents are recommendations for the future. From now, our cooperation in all fields will be deepened. Azerbaijan has always been close with Turkey in dealing with terrorism, one of the main problems of this country. Azerbaijan fully supports Turkey in its just struggle against terrorism”, – President Ilham Aliyev said.

    via APA – Azerbaijani President: Azerbaijan supports Turkey in the fight against terrorism.

  • Test of Sincerity in Turkey-Azerbaijan Relations

    Test of Sincerity in Turkey-Azerbaijan Relations

    Hasan Selim Ozertem, USAK Center for Energy Studies

    Although Ankara had to give up a lot of dreams beyond the Caspian Sea due to regional geopolitics and geographical reasons, it succeeded in developing a complex relationship with Azerbaijan.

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    Twenty years ago, the Soviet Union was divided into fifteen republics. The resulting picture necessitated Turkey returning to a geography in which it was alienated as a result of the controlling policies of the Soviets. In the reconstruction process of five Turkic states, four in Central Asia, and Azerbaijan in the Caucasus, Turkey did not hesitate to take the initiative. If we look back, we can say that Turkey could not realize its dreams beyond the Caspian Sea due to regional geopolitics and geographical reasons, but succeeded in establishing a complex ties with Azerbaijan.

    Located west of the Caspian Sea, Azerbaijan has experienced various problems in integrating into the international system after seventy years of Soviet administration. The first of them was the outbreak of war in Karabakh in 1988, which emerged as the biggest obstacle to experiencing a normal transition period for the country. Until the ceasefire agreement was signed in 1994, the country had serious troubles in the areas of security and economics, but after Heydar Aliyev’s coming to power, it entered a rapid recovery process.

    In that period, Turkey sided with Azerbaijan and closed its border with Armenia in 1993, in response to Armenia’s occupation of the territory of Azerbaijan and human rights violations. This step opened the way for Turkey to share a common fatewith Azerbaijan, but in the long run paved the way for the narrowing of its maneuvering area.

    Baku’s Flirting with Moscow

    The entering into service of the Baku-Tbilisi-Ceyhan crude oil pipeline in 2006 and the delivering of gas via the Baku-Tbilisi-Erzurum line the next year were important turning points for Azerbaijan. Because from 2006 to the end of 2008, when the global financial crisis occurred, Azerbaijan has grown by over 20 % and thus had a chance to recover from its economic problems and modernize its military. The completion of these projects creates an important success story for Turkey, but Ankara, having difficulties reaching beyond the Caspian Sea, could not take its current relations beyond the level they were in the 1990s. Even at certain points, it was seen that the existence of Ankara was relatively weakened by the gradual growth of Russia in the region. It should be noted that the Georgia-Russia war which erupted in 2008 played an important role in that issue.

    The Kremlin, taking an aggressive stance in its backyard starting in the 2000s, sent important messages to both countries of the region and to the West with this war. Looking at Turkey-Azerbaijan relations, two important factors gain clarity. The first factor was the need for Baku to redefine its relations with Russia, which until 2008 Baku had always tried to keep balanced. The first reflection of that was the Kremlin’s monopolization of the Karabakh problem’s solution process since it wants to be the primary actor in solving the problems in its backyard. The second reflection was the symbolic but politically significant natural gas treaties signed between Azerbaijan and Russia.

    The second important factor was the normalization process of Turkey-Armenia relations. In Baku, a pro-Russian clique close to the administration used the normalization process as a propaganda tool and that played a catalytic role in the rapprochement between Azerbaijan and Russia. In that process, which turned into a test of sincerity, some conflicts between Turkey and Azerbaijan entered the political scene. The closure of Sehitlik Mosque which was built in Azerbaijan by Diyanet, hauling down of Turkish flags in the country, assumption of a rigid attitude on the mutual abolition of visas, and adoption of a strong language toward Turkey were reflections of the tensions that occurred in that process. Yet, examples of Baku’s attitude seen in Wikileaks documents were quite interesting. Aliyev did not refrain from using expressions that underestimate Turkey in the meetings with American authorities.

    Azerbaijan’s search for exercising power over Turkey

    While we see acceleration in Baku-Moscow flirtations after 2008, it became apparent that Azerbaijan did not choose to completely cut its relations with Turkey. Inthat period, Baku a fortiori preferred to exercise power over Ankara. A positive public perception of Turkey in Azerbaijan was effective in İlham Aliyev’s not extravagating in that partly successful policy. As a consequence, Baku, taking public response into account, continued to exercise power over Ankara while managing the perceptions of the public.

    On the other hand, Turkey did not take a stance that will raise tension against such steps, on the contrary; it took concrete steps to normalize strained relations. Prime Minister Erdoğan did not abstain from sending clear messages in the Azerbaijani parliament after the signing of protocols. That initiative weakened the hand of Turkey in relations with Armenia but helped Erdoğan regain power in Baku. In other words, while not being able to take a step back from the decision taken in the 1990s to close the borders, an era in which relations with Azerbaijan are defined in terms of policies toward Armenia has started. As a result of this, Turkey is faced with a question that asks how to turn the equation in a zero-sum game in its favor. This equation has not yet been solved.

    At this point, we cannot say bilateral relations are at a specific level they had been in 1990s, but it is a fact that Turkey’s current position maintains its critical importance in Azerbaijan’s westward expansion. In this respect, Turkey is still seen as an important ally that is not dispensable in Baku. For Turkey, the situation is not so different. After the June 12 elections, PM Erdoğan’s first visit abroad after Cyprus was to Baku, and that illustrates Azerbaijan’s importance in Turkish foreign policy.

    Nevertheless, in order to bring current relations to a more robust structure for the next twenty years, more than diplomatic jests are needed. Strengthening its economic and strategic position in the Caucasus is very important for a Turkey that wants to be a regional power, and for the turning of perception in Azerbaijan in favor of Turkey. But, Ankara, having to amend the paradigm with Armenia toward 2015, has to find ways to avoid a crisis in its relations with Azerbaijan.

    *This piece was translated by Nihal Cizmecioglu.
    Tuesday, 18 October 2011

    Hasan Selim Ozertem, USAK Center for Energy Studies