Russia and Azerbaijan to be linked by joint oil ventures

Russia and Azerbaijan to be linked by joint oil ventures

Russia and Azerbaijan plan to create joint ventures in the oil sector, Russian Ambassador to Azerbaijan Mikhail Bocharnikov said at a press conference in Baku.

"Our plans envisage creating joint ventures in an effort to organize oil production. There are plans to set up enterprises for machine building in agriculture. We are interested to deliver to Azerbaijan products of our agriculture machinery enterprises. We are ready to create joint ventures on manufacturing such vehicles," Trend cited the envy as saying.

"On the part of the states, we will support the enterprises, which in their turn will enhance the development of industrial production. It would be better if our enterprises focus on industry in order to promote the diversification and economy of Azerbaijan, including our economic ties," Bocharnikov added.

A scientist of the Institute for Economics of the RAS, Alexander Karavaev, told Vestnik Kavkaza that it is about creating a fundamentally new production. "In Soviet times, Azerbaijan hosted the production base of mounting and production of various equipment for production installations, pipelines, pump systems and compressors. But 30 years since the collapse of the USSR all of it became inoperative . Therefore, Bocharnikov is talking not about the resumption of cooperation, but about a new word in the systematic import substitution of equipment affecting the efficiency and characteristics of production," he said.

"Such a task was set before Russian producers some time ago due to the sanctions. For Azerbaijan, market demands dictate the task of strengthening the economy's industrial component. SOCAR and Rosneft will be the main investors and main consumers. Some of the products will go to foreign markets. In addition, there is an interesting project for the possible construction of a polymer enterprise in Russia. Like SOCAR Polymer, but with investments going to Russia," Alexander Karavayev stressed.

Head of the 'Caspian Barrel' Center for Oil Research Ilham Shaban noted that it's about the development of the Goshadash oil and gas field. "During Ilham Aliyev’s visit to Russia on September 1, a memorandum was signed between SOCAR and Rosneft on joint development of the Gosadash field. According to officials, in 2019 they were going to deepen relations with Azerbaijan in the oil production," he recalled.

"Azerbaijan said that it is planned to conduct a more in-depth analysis of this structure, in which SOCAR has conducted exploration work since 2012. After a deeper exploration, the companies will be able to sign a specific contract and start joint production in the Caspian. For Rosneft, it will be the first offshore project outside Russia," Ilham Shaban concluded.