Total investments in development of Azeri-Chirag-Guneshli and Shah-Deniz fields development as well as into construction of Baku-Tbilisi-Ceyhan oil pipeline and South Caucasian Pipeline gas pipeline since the beginning of their implementation till January 1, 2012 reached $34 billion, reads the report "BP Stable Development in Azerbaijan" during 2011.
Half of this capital was invested into the above-mentioned projects in the past five years. According to the BP report, from 2007 to 2011 $17,218 billion was invested into these projects.
Yesterday BP released data of capital investments into the Azeri-Chirag-Guneshli (ACG). According to this information, till January 1, 2012 over $27 billion has been invested into this project. ACG has become the most capital-intensive project, which BP has ever implemented in Azerbaijan and in the region. 79.4% of all investments of the British company fell to this project.
However, till January 1, 2012 BP has extracted 257.4 million tons or 1.9 billion barrels of oil on the contract area ACG located in the deep-water area of the Caspian Sea.
Till recently the investments into development of the first phase of development of Kashagan field were estimated at $38.6 billion with maximum production of about 20 million tons of oil a year, but now the companies plan to increase the budget up to $46 billion. The operation costs for extraction of 35 million tons of oil on ACG total $600-700 million, on Kashagan field at least $1 billion worth of investments will be needed to extract twice as much. The oil production has not started on Kashagan yet and the extraction of the first oil scheduled for December 2012 has been postponed again. The companies failed to find an agreement with the government.-0-
Economics
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Last week, Azerbaijani media reported an impending increase in retail bread prices, attributing the rise to an increase in product weight. The following day, an official notification confirmed that the government had no intentions of sanctioning a bread price hike in the country. However, the threat of a price increase for this staple food remains for another reason.
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S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
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In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
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A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
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