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3rd issue 10 june 2011 for more news insights and discussions visit www.cog.az

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the event enjoys the special attention and support of the government of azerbaijan the high status of the exhibition is emphasised by the annual participation in of h.e ilham aliyev the president of azerbaijan republic the caspian oil and gas project is traditionally supported by the ministry of industry and energy of the azerbaijan republic and the state oil company of the azerbaijan republic socar the status of the event is also emphasised by the composition of its sponsors this year sponsors of the event numbered 20 companies including key players in the oil and gas industry i.e the state oil company of azerbaijan republic socar baku white city bp azerbaijan caspian geophysical caspian pipe coatings conoco phillips cross caspian oil and gas logistics depa edison fluenta gdf suez inpex city bp azerbaijan caspian geophysical caspian pipe coatings conoco phillips cross caspian oil and gas logistics depa edison fluenta gdf suez inpex corporation mcdermott caspian contractors inc nobel oil omv gas power gmbh 3

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rwe statoil salans tap total e&p azerbaijan ite group plc ­ iteca caspian corporation mcdermott caspian nobel oil omv gas power gmbh rwe statoil salans tap and total e&p azerbaijan the organisers of the exhibition are traditionally the british ite group plc company and its partner in the caucasus the iteca caspian llc company the partners of ite group plc i.e iteca caspian llc azerbaijan ite llc moscow russia euf turkey gima germany ite china prc ite gulf uae were all actively 4

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involved in the project and proactively attracted international companies to participate in the azerbaijan exhibition the exhibition and conference have long been perceived by specialists as an integral part of the caspian energy industry and one which promotes the intensive exchange of experiences between foreign and national companies and the introduction of advanced technologies this year the exhibition has coincided with the azerbaijani oil-industry workers for instance this year azerbaijan celebrates the of aga gurban aliyev the legendary oil explorer who he was the discoverer of the the rich history of the sector and the direct relevancy to oil and gas production makes the exhibition and conference an effective platform for companies interested in long-term cooperation with the oil and gas markets of azerbaijan 5

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in 2010 azerbaijan produced 50.7 million tons of oil and 26 billion cubic meters of gas oil production in azerbaijan has increased by 5.6 times as compared to the year 1997 and gas production has grown by 5.2 times as compared to the year 2004 up to the present time 36 billion usd worth foreign investment was made into the country s oil and gas sector state oil company of the azerbaijan republic mr khoshbakht yusifzade who spoke at the conference with the main report of the caspian sea amounts to 110 thousand tons of oil and 38 thousand cubic meters of gas since the beginning of tons of oil and 60 billion cubic meters of gas were produced 111 million tons out of the total volume of produced oil speaking about a number of projects implemented by socar k.yusifzade said that bp and socar are already carrying out preparatory activity for developing gas resources in deep layers and it is planned to start production in 2017 gas reserves in the framework of this project are estimated project he informed that 6 wells are currently exploited there and the total reserves are estimated as 1.2 trillion cubic meters of gas and 240 million tons of condensate in 2010 a total of 3.1 billion cubic meters of gas was pumped into the underground gas storages which is twice as much as in previous years as it was pointed out in the report late in 2011 the state oil company of the azerbaijan republic intends to start structure socar estimates the reserves of the prospective promises 200 billion cubic meters of gas and 40 million tons work will be started in september promises 500 billion cubic k.yusifzade also informed of the fact that there are also other promising structures which are in the hub of foreign early as in 2015 gas production in azerbaijan will reach the 30 billion cubic meters mark 8

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marc feuillade general manager total e&p azerbaijan strong business culture competence and dedication of our teams in operated furthermore total has always shown a genuine interest for the people in baijan for more than ten years and our presence almost coincides with the re naissance of the ancient but still young republic of azerbaijan during this time total has demonstrated its strong com mitment to the success of industry in azerbaijan through its active participa tion across the oil gas sector explo ration development production and transportation of hydrocarbons over the past ten years total explo offshore exploration in the azeri sector of the caspian sea and is now partner in three of the four major world class energy assets of azerbaijan shah deniz pipelines in february 2009 total signed a new the national oil company of the republic of azerbaijan socar for an exploration and production contract on the absher on block in the caspian sea the drilling of the exploration well is ongoing among the main drivers of this suc cess which come to my mind are the reason of its success one comes quickly to the excellent quality of the relation ships built up over more than ten years between the azeri oil community and decision makers and total s teams i take this opportunity to warmly thank the azeri authorities for their continu ous support it is my sincere wish that total expands its activity in azerbaijan in the coming years in close cooperation with the azeri authorities and socar gas industry iteca caspian would like to retract the statement shown as being from marc feuillade from total e p azerbaijan in the 1st issue of daily news due to technical rea sons the information provided in the interview was false and we apologise for any misleading information communicated 9

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the growing demand for gas on the european market provides a sufficient niche for bringing azerbaijan gas to that market car vitaliy beglarbekov said at the conference in his report he also underlined that azerbaijan is currently on the threshold of de termining the main direction for adheres to diversification of its gas export routes in the framework of this process the evaluation of the decision regarding the gas sale routes will be according to mr beglarbekov it is planned to export to europe nearly 10 billion cubic meters of ploitation however azerbaijan should consider dif volumes of gas production in the country will reach result of further development of prospective struc tures and fields project to count on this project s reliability the par ticipant countries signing of the document on sup port to the project on the previous day is another evidence of the parties intention to develop this project socar s preference is to reach the largest pos sible number of markets including austria germany greece turkey italy and other countries beglarbek ov said despite the fact that pipelines are the best way of transporting gas azerbaijan is also considering the projects of supplying liquefied and compressed gas ages supply of azerbaijan liquefied gas through the black sea to romania and farther to hungary 10

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«shahdeniz» possessing huge capacity pipeline systems must be safe david maple sale representative in cis countries for the fluenta company 11

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