Azerbaijan-Belgium Business Forum held in Baku

Azerbaijan-Belgium Business Forum held in Baku

Baku hosted the Azerbaijan-Belgium business forum with participation of companies based in Flandria of Belgium on Nov. 23.

The forum was attended by about 15 Belgian and 40 Azerbaijani businessmen.

Samir Valiyev, Officer of the Ministry of Economic Development, said that the participants include companies specialized in the areas of agriculture, industry, transportation, and consulting.

He spoke about the economic potential of Azerbaijan and public policy.

He hailed the development of bilateral relations between Azerbaijan and Belgium a 46 percent year-on-year rise in the trade turnover during January-September 2009 despite the global economic crisis.

Azerbaijani Ambassador to Belgium Emin Eyubov told the foreign businessmen that the tourism, industry and agriculture are the priority areas in Azerbaijan.

Belgian Ambassador to Azerbaijan Phillip Jettard noted that this is the first Belgian trade mission to Azerbaijan, adding that Belgium supports Azerbaijan’s WTO accession.

The Belgian businessmen were also told about the activities and projects of Azerbaijan Exports and Investment Promotion Foundation (AZPROMO) and Azerbaijan Investment Company.

U.S. company sells its stake in largest oil project in Azerbaijan

U.S. company sells its stake in largest oil project in Azerbaijan

The U.S. company Devon Energy is selling its share in the development of the Azeri-Chirag-Guneshli (ACG) offshore unit in Azerbaijan, hoping to focus on mining projects in the U.S.

"We will sell our stake in the ACG project, as well as all our international assets, including assets in the Gulf of Mexico," Devon Energy Spokesman Chip Minty wrote Trend Capital in an e-mail today.

According to the company official, Devon Energy has decided to focus its activities on onshore projects in North America, "where the company has more opportunities to drill."

According to some reports, Devon Energy will sell its share in the first quarter of 2010.

Devon Energy has a 5.62-percent equity share in the ACG project. Its total reserves of oil deposits exceed 900 million tons.

ACG participating interests are: BP (operator - 34.1 percent), Chevron (10.2 percent), SOCAR (10 percent), INPEX (10 percent), StatoilHydro (8.6 percent), ExxonMobil (8 percent), TPAO (6.8 percent), Devon (5.6 percent), ITOCHU (3.9 percent), and Delta Hess (2.7 percent).

In the first three quarters of 2009, BP produced roughly 224 million barrels of oil from the ACG fields, which on average is over 822,100 bpd, BP reported earlier.

The Baku-Supsa pipeline on the Black Sea coast of Georgia transports Azeri Light oil varieties produced from the field. The project partners, not including ExxonMobil and Devon Energy, transport major volumes of oil via the Baku-Tbilisi-Ceyhan on the Mediterranean coast of Turkey. ExxonMobil and Devon Energy, not being members of the Baku-Tbilisi-Ceyhan oil pipeline, transport their energy by rail in the direction of the Georgian Black Sea ports.

Home trade turnover topped $11.8 bn in Azerbaijan

Home trade turnover topped $11.8 bn in Azerbaijan

For Jan-Oct of the year domestic trade turnover in Azerbaijan reached $11.814 bn at the rate by early November that makes up 87.1% of the 2008 trade turnover (AZN 10.9 bn or $13.608 bn).

In 2007 the turnover was AZN 7.6 bn or $8.99 bn.

The State Statistics Committee reports that for the last 10 months domestic commodity turnover totaled AZN 9.489 bn with growth by 8.7% compared to the 2008 relevant term. Legal entities provided 15.5% of trade turnover, fairs and markets 41.98%, and sole proprietors 42.48%.

“Turnover on food rose by 10.6% up to AZN 6.15 bn versus 7 bn in 2008 and on manufactured goods by 4.3% up to AZN 3.339 bn versus AZN 3.9 bn in 2008,” the Committee reports.

For Jan-Oct 2009 volume of paid services to the population made AZN 3.203 bn (rise: 12.6%) versus AZN 3.4 bn (+29.7%) in 2008. Individual employers provided 20.03% of services and legal entities 79.97% with rise of 11.3% and 12.9% respectively.

This October trade turnover totaled AZN 1.024 bn (AZN +29.1 million against this September’s index), including on foods AZN 643 million (AZN +36 million) and AZN 382 million (+AZN 25 million) on non-foods.

Volume of services reached AZN 397.9 million with rise of AZN 16.7 million versus September of the year.

For Jan-Oct 2009 average trade turnover per resident made AZN 143.3 ($178.41) that exceeds last year’s same period figure by AZN 13.4.

Before this August this year’s average trade turnover per resident was AZN 138.5 ($172.2) that exceeds last year’s same period figure by AZN 14.3.

For Jan-Apr 2009 average trade turnover per resident totaled AZN 138.4 ($172.25) that exceeded last year’s same period figure by AZN 18.7.

Oil Fund assets topped $14.2 bn by this November

Oil Fund assets topped $14.2 bn by this November

This October assets of the State Oil Fund of Azerbaijan (SOFAZ) grew by over $900 million.
Fund’s executive director Shakhmar Movsumov says that by late October SOFAZ assets reached $14.2 bn.

“As of 31st October SOFAZ’s transfer to State Budget totaled AZN 4.1 bn ($5.1 bn) out of AZN 4.9 bn ($6.1 bn) targeted for 2009,” Mvsumov said.

As of 1st October 2009 Fund’s assets were $13.337 bn.

“As of 31st October 2009 Fund’s revenues from assets management made up AZN 595 million against the forecast of AZN 211.4 million for this year,” he emphasized.

All the SOFAZ finances are placed abroad.

Russia is one of the key foreign trade partners of Azerbaijan

Russia is one of the key foreign trade partners of Azerbaijan

Russia almost gets up to US on volume of trade with Azerbaijan.
This October Russia with mutual goods turnover for на $1.512 bn has not only strengthened its positions in the trio of key foreign trade partners of Azerbaijan but also almost gets up to the US ($1.569 bn).

While Italy’s leading position ($3.06 bn) is simply indisputable.

The State Customs Committee (SCC) informs that for Jan-Oct 2009 foreign trade turnover of Azerbaijan with CIS countries totaled $2.87 bn or 17.9% of overall foreign trade turnover of the country ($16.5 bn) versus 7.21% for 2008.

This October trade turnover with these countries made up $331.186 million.

For Jan-Oct of the year Azerbaijan exported to the CIS countries commodities for $1.3 bn (11.46% of whole export) and imported goods for $1.547 bn (31.22% of whole import). Azerbaijan had $222.766 million of negative balance in trade with these countries.

Export to the CIS countries included mainly mineral fuel, oil, petroleum products and bitumen materials (50.19%), vessels and other swimming facilities (11.53%), animal and vegetable oils (7.58%), ferrous metals (6.09%).

In import such kinds of goods dominated as animal and vegetable oils (11.09%), electric machines and equipment (9.26%), ground transport means (8.16%), equipment and mechanisms (8.02%) and flying machines (6.58%).

Azerbaijan’s foreign trade turnover with non-CIS countries totaled $13.645 bn or 82.61% of foreign trade turnover of the country.

This October trade turnover with them made up $1.8 bn. For 10 months export to non-CIS countries totaled $10.236 bn (88.54% of whole export), import - $3.4 bn (68.78% of entire import) and the country had $6.827 bn of positive balance with them.

Export consisted of mainly mineral fuel, oil and petroleum products, bitumen minerals (98.16%), polymers and products made of them (0.37%), fruits (0.21%), jewels and semi-precious stones,   precious metals and wares, made of them, bijouterie, ornamentals  (0.21%), sugar and products made of it (0.19%).

And import included mainly equipment and mechanical appliances (24.45% of whole import), electric equipment and devices (18.91%), ground transport vehicles (10.06%) and wares made of ferrous metal (7.53%).

For Jan-Oct 2009 Italy became Azerbaijan’s key export trade partner ($2.948 bn or 25.51% of whole export) and the USA with $1.37 bn (25.51%) and France with $1.017 bn (8.8%) entered the trio.

Then follow Israel $856.9 million (7.41%), Taiwan $680.39 million (5.89%), Russia $617.748 million (5.34%), Canada $433.355 million (3.75%), Indonesia $431.89 million (3.74%), Malaysia $387.557 million (3.35%) and Georgia $335.066 million (2.9%).

Russia remained the leader on import operations with $894.4 million (18.04% of whole import).

Then follow Turkey with $722.576 million (14.58%), Germany $468.99 million (14.46%), Ukraine $423.88 million (8.55%) and China with $355.5 million (7.17%). For comparison, Italy had $115.288 million (2.33%).

In 2008, the trio consisted of Italy, the United States and Israel.

Azerbaijan exported oil products for $1.27 bn in 2009

Azerbaijan exported oil products for $1.27 bn in 2009

For Jan-Oct 2009 Azerbaijan imported 53,563 tons of petroleum products for $46.475 million versus 78,855 tons of petroleum products for $96.78 million in 2008.
This October import totaled 2,455 tons for $2.38 million against 1,777 tons for $1.95 million in September, 8,476 tons for $6.58 million in August, 11.192 million tons for $6.772 million in June and 3.689 million tons for $3.397 million in May.

The State Customs Committee has informed for Jan-Oct 2009 the share of oil products in country’s overall import made only 0.94%.

For Jan-Oct 2009, as well as in 2008, Azerbaijan did not import oil gas and other gas hydrocarbons, while their import in 2007 reached 470.118 million cu m for $52.086 bn (0.91% of 2007 overall import).

For Jan-Oct 2009 export of oil products from Azerbaijan totaled 2.7 million tons for $1.266 bn (10.95% of country’s overall export with 27.78% decline versus Jan-Oct 2008). The past year’s export of oil products from Azerbaijan totaled 2.847 million tons for $2.05 bn, and for October 2009 – 203,897 tons for $102.047 bn.

For Jan-Oct 2009 it was exported 1.917 million tons of petroleum products for $786.18 million in freely convertible currency in accordance with the contracts versus 2.8 million tons of petroleum products for $2.02 bn in 2008.

For Jan-Oct of the year sales in accord with contracts in national currency totaled 761,568 tons for $467.5 million, and registration for export in accord with conventional declarations was passed by 22,349 tons versus 37.505 tons for $31.668 million for the 2008 same term.

For Jan-Oct 2009 the SOCAR Department of Marketing & Economic Operations exported 1.758 million tons (65,1%) of petroleum products, Department AZAL Oil CJSC of Azerbaijani Airlines AZAL 761,568 tons (28.19%), oil-processing plant Azneftyag 101,215 tons (3.75%), and Ilqar Firm 50,916 tons (1.88%).

In 2008, the SOCAR Department of Marketing & Economic Operations exported 2.47 million tons (86.89%) of petroleum products, QKSSS LLC 98,274 tons (3.45%), Azneftyag 92,333 tons (3.24%), Caspian Petrol-1 69,210 tons (2.43%).

For Jan-Aug 2009 foreign trade turnover of Azerbaijan totaled $12.407 bn, including import of $3.8 bn and export of $8.58 bn.

Azerbaijan's active population tops 4,330 million

Azerbaijan's active population tops 4,330 million

As of Nov. 1, Azerbaijan’s economically active population reached 4,330,000, of which 4, 069,600 are employed, the State Statistical Committee said.

The number of contract workers reached 1,375,400.

The number of foreigners working in Azerbaijan reached about 5,000 according to official statistics.

About 1,400 foreigners are employed in industry, 1,500 in construction, 700 in real estate market, 500 in wholesale and retail trade, repair of motor vehicles, household appliances and personal effects, 400 in education and 500 in other areas.

Foreign nationals employed by enterprises and organizations make up only 0.1 percent of the economically active population in the country.

Employment agencies listed 42,200 people as jobless, of which 44.4 percent were women.

French companies ‘keen’ to invest in Azerbaijan’s economy

French companies ‘keen’ to invest in Azerbaijan’s economy

Azerbaijan`s Minister of Economic Development Shahin Mustafayev met a delegation of MEDEF, Movement of the French Enterprises led by Mrs. Pascale Jeannin-Perez.

Mr. Mustafayev briefed about achievements gained in Azerbaijan`s economy. He said in January-October 2009, the country`s GDP stood at 8,3 %, industrial production at 7,4%, agriculture at 3,6%, income of the population at 6,4%, strategic currency reserves at 19,1 bln dollars. 

Currently, 45 companies with French capital are functioning in Azerbaijan, Mustafayev said.

Minister invited the French businessmen to make investments in Azerbaijan`s economy.

Mrs. Pascale Jeannin-Perez praised Azerbaijan`s support to French businessmen. She said MEDEF unites French companies engaged in various areas. Visit of French delegation to Baku is evidence of high interest to Azerbaijan`s economy.

The French businessmen updated the activity of the companies and expressed readiness to cooperate with Azerbaijani entrepreneurs.

Gold prices hit all-time high

Gold prices hit all-time high

Gold prices surged to a record high Tuesday after the International Monetary Fund said it had sold 200 metric tons of the precious metal to India’s central bank, CNNMoney reported.

November gold rose $30.90 to settle at $1,084.90 an ounce, after climbing to a high of $1,085.20. The previous intraday record was set Oct. 13, when gold rose to $1,069.70 an ounce.

The IMF said Monday that it had sold 200 metric tons of gold to the Reserve Bank of India for $6.7 billion. The sale was part of an ongoing IMF plan aimed at selling over 400 metric tons of gold.

The move eased some concerns that such a big influx of supply could weigh on prices. It also raised speculation that China, which many analysts had expected to be the main buyer, will absorb much of the remaining gold in the IMF’s stockpiles.

"The market was expecting the sale to happen over several years," said Tom Pawlicki, a precious metals analyst at MF Global in Chicago. "It’s pushing gold higher because it means that gold won’t come onto the open market."

Gold prices were also supported by news that Barrick Gold Corp. bought back 1 million ounces of gold in its hedge book during October.
The mining company said Monday it expects to unwind its remaining gold hedges, totaling 1.9 million ounces, by September 2010.

The rally came despite a slightly stronger U.S. dollar. The dollar index, which measures the dollar’s value against a basket of currencies, rose to a one-month high earlier Tuesday.

Gold and other commodities that are priced in dollars often fall when the greenback strengthens. But demand for gold remained firm Tuesday as investors focused on the IMF sale.