Azerbaijani SOCAR, Russia’s Transneft sign new deal on Baku-Novorossiysk pipeline

February 19, 2014

Azerbaijan's state energy company SOCAR and Russian oil pipeline monopoly Transneft -- the operator of the Baku-Novorossiysk pipeline's Russian section - have signed a new deal on the continuation of oil pumping via the pipeline, Azernews reported on February 18.

The company reported that the new deal that meets interests of both sides will allow supplying Azerbaijani oil to the world market via diversified routes.

Earlier, SOCAR reported that it will transport oil through the Baku-Tbilisi-Ceyhan oil pipeline instead of the Baku-Novorossiysk pipeline.

The contract for transiting Azerbaijan's oil via the Baku-Novorossiysk pipeline through the territory of its giant northern neighbor, in effect for 17 years, was revoked in early May.

It transported the oil produced by SOCAR independently, as well as from onshore fields developed within joint enterprises. Azerbaijan's oil is being shipped from the Novorossiysk port under the name of the Russian export blend, URALS.

Copyright: Azernews, 2014