SOCAR and Transneft sign new agreement

After lengthy negotiations on the resumption of oil transportation via Baku-Novorossiysk oil pipeline, the State Oil Company of Azerbaijan Republic (SOCAR) and Russian Transneft have signed a new deal based on mutually beneficial terms and conditions.

"The agreement on commercial principles of oil transportation through Baku-Novorossiysk pipeline was signed as a result of long-lasting negotiations. It enables us to resume oil transportation via the Russian territory and contributes to diversification of the export routes for Azerbaijani oil.” SOCAR announced.

Resumption of oil transportation through the territory of Russia will create opportunities for expanding export routes of Azerbaijani oil to the world markets.

Baku-Novorossiysk oil pipeline independently transported oil produced by SOCAR, as well as from onshore fields, developed with joint ventures.

The announcement was made on the same day when the Russian Government approved a new tariff policy of Transneft. In accordance with the new policy, 2014 tariffs will remain at the level of 2013. In 2015, 2016 and 2017, the tariffs adjustment will make 80% of inflation level. Starting from 2018, the tariffs can be adjusted at the level from 80% up to 100% inflation level.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/26022014/socar_and_transneft_sign_new_agreement/