Russian Rosnedra reported that the auction for the right to use bowels of earth on the Caspian section, Kalmykia, to explore and extract hydrocarbons failed to take place, reported the Kalmykia Republic Department for Use of Bowels of Earth.
The reason of this decision is that only SOCAR Rus, Russian daughter company of State Oil Company of Azerbaijan (SOCAR), has applied for the auction.
SOCAR has never been interested in the bowels of earth in other countries, preferring investing capital into foreign oil refining projects.
According to estimates of Shell, Tatneft and LUKoil operating in Kalmykia, Kalmykia can have significant hydrocarbon resources on the depth of over 5000 meters. Oil could be transported with low costs through the port in Makhachkala or by tankers to Baku and then pumped via Baku-Tbilisi-Ceyhan oil pipeline. In the future it is possible to deliver oil via the LUKoil's oil pipeline, which will connect the Caspian offshore fields with the export oil pipeline of the Caspian Pipeline Consortium, which transports oil from Kazakhstan to Novorossiysk, reported http://rusenergy.ru.
* The area of the Caspian section, to which SOCAR Rus claimed, totals 100.4 sq.km., the forecasted resources of C1 category - 4,697 million tons of oil. The starting fee for the right to use bowels of earth was 516.5 million rubles.-0-
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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