Gazprom and SOCAR sign addendum to Azerbaijani gas purchase and sale contract

Monday, Sep 06, 2010

Alexey Miller, Chairman of the Gazprom Management Committee attended in Baku an extended meeting with Ilkham Aliev, President of Azerbaijan within the official visit of the Russian Federation President Dmitry Medvedev to the Republic of Azerbaijan.

The meeting participants emphasized that Russia and Azerbaijan had a long track record of cooperation, which evolved rapidly and had a great development potential for the future.

The meeting resulted in signing an addendum to the effective gas purchase and sale contract for Azerbaijani natural gas between Gazprom and the State Oil Company of Azerbaijan Republic (SOCAR). Pursuant to the addendum, the annual volumes of gas purchase will grow to 2 billion cubic meters starting from 2011 and to more than 2 billion cubic meters from 2012.

“At today’s meeting with our Azerbaijani counterparts and Rovnag Abdullayev, President of SOCAR we analyzed the implementation of the contract for gas supply from Azerbaijan to Russia over the period from January to August 2010, looked at the ways of the cooperation deepening between our companies and resolved to further increase the gas purchase amount. This is fully in line with our basic contract, which doesn’t limit the maximum volume of gas supply from Azerbaijan. Owing to territorial proximity, transit zones absence and existing gas transmission infrastructure availability, the cooperation deepening in the gas sector between Azerbaijan and Russia is considered the most economically beneficial option for both partners. It is absolutely clear therefore, that Azerbaijan gives priority to increasing its export volumes particularly for Russia. It is widely known that the Russian direction is the most reliable and secure transmission corridor for Azerbaijani gas,” stated Alexey Miller.

Source: Gazprom