Both media and experts have different opinions on the cooperation between SOCAR and Rosneft in field of oil reverse via the Baku-Novorossiysk pipeline, a source from SOCAR told Turan's correspondent.
"Everyone has his or her own vision of this problem. Thus, everything, except commerce, has been noticed in the cooperation between the two state companies," said the same source.
He said Rosneft is not going to deliver its oil to Europe via the circular route. "The goal of our cooperation is to achieve better commercial results. Therefore, oil reverse via the Baku-Novorossiysk pipeline will actually be a swap operation," said SOCAR's representative.
He said Rosneft will pass a certain volume of oil to SOCAR Trading, SOCAR's daughter company involved in oil and oil products purchase and sale and transportation around the world, on the Russian-Azerbaijani border. This will be the end of the juridical responsibility of the Russian company. SOCAR will send a certain voume of that oil to the oil refineries in Baku and some oil will be transported via the Baku-Tbilisi-Ceyhan pipeline. For the volume of Russian oil SOCAR-Trading will provide light Azerbaijani oil to Rosneft where it wishes to.
The advantages of the Russian side are the following: a short export route (via the pipeline to the Azerbaijani border instead of by tankers to Italy via Novorossiysk), the company will receive light and higher quality oil in any European country and this will help to reduce the transport flow through the Turkish straits. The Russian company believes that the Baku-Novorossiysk pipeline will not suspend its operation and will not become unprofitable when Azerbaijani oil transportation via it will be suspended in 2014.
The advantages of the Azerbaijani side are that Baku's oil refineries will receive additional volume of oil for refining. SOCAR can export its oil by railway to the Georgian terminal Kulevi. Azerbaijani and Georgian railway workers will receive additional profit by transporting oil in cisterns via the Baku-Kulevi route. While exporting oil via Kulevi SOCAR will make more money, because the clients will not be offered Urals mixture, but high quality Azeri Light and the incomes of the Kulevi terminal will increase from the growth of cargo flow, which is directly connected with growth of SOCAR's profit. The volume of oil transportation via BTC will also grow, which will increase incomes of SOCAR as a BTC Co shareholder.-0--
Economics
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