Azeri International Operational Company (AIOC), responsible for development of "Azeri-Chirag-Guneshli" sea deposits, began receiving oil in January extracted from the western part of "AZERI" at the "Western Azeri" stationary platform in the "Phase-2" project.

The consortium's press-service reported that oil extraction from "Western Azeri" began December 30, from the first of the three mining oil wells that were drilled in the context of the advanced drilling program. On January 4, 2006 oil from the platform reached Sangachal terminal through the underwater pipeline. The volume of oil extraction will grow during 2006 as other advanced drilling programs begin working. Peak "Western Azeri" oil extraction will produce 300 thousand barrels per day. The "Central Azeri" platform will produce-340 thousand barrels per day; its current production exceeds 280 thousand barrels. We expect that during 2006, the average amount of oil production per day will be 70 thousand barrels.

The"Western Azeri" platform is established 100 kilometers east of Baku, where the depth of water reaches 118 meters. The facilities include the platform for oil production and drilling from 48 drilling mines, living spaces, and the 30th oil pipeline leading to the seashore terminal in Sangachal. The gas extracted at the "Western Azeri" will be sent by inner trade underwater pipelines 5 kilometers to the platform for gas and water forcing, established on the "Central Azeri". The rest of the gas will be exported by the existing submarine gas pipeline to the Sangachal terminal and from there by the new export gas pipeline- to the ACG "Azerigas" system for the inner consumption.

*The auctioneers of AIOC are: BP (the operator-34, 1%), Unocal (10, 3%), SOCAR (10%), INPEX (10, 0%). Statoil (8, 6%), ExxonMobile (8%), Devon (5, 6%), Itochu (3, 9%), Amerada Hess (2, 7%).

** The contract PSA type for elaboration of "Azeri-Chirag-Guneshli" was signed September 20, 1994 for a 30 year term. By the latest data, during this time 5, 4 billion barrels of oil will be produced from the bowels. In the context of the contract, the first oil was produced November 7, 2005 with the beginning of "Central Azeri" platform exploitation. A large scale elaboration of the contract territory began February 13, 2005 with the beginning of "Central Azeri" platform exploitation. The oil extraction in the Eastern part of "Azeri" is planned for the year 2007. The completion stage of elaboration of the contract area will be oil extraction in the deep- water part of "Guneshli" deposit planned for 2008.

The Asian Development Bank (ADB) has recently finished a report on evaluation of renewable sources of energy in Azerbaijan (PREGA).

A ministry source reported to "Azerbaijan Today" that specialists from ADB, Industry and Energy, Economic Development and the Academy of Science have been working on this report for 6 months. The goal of the project is the theoretical study of all possible applications of alternative energy sources in Azerbaijan.

On the basis of this report, ADB will prepare a special project and will present it to the government of Azerbaijan for approval.
The need for application of alternative sources of electric energy (sun and wind) has been discussed for nearly 10 years. In 1996 a Japanese company planned an experimental construction of several wind electric stations, but this project was only left on paper. However, in front of Heydar Aliyev's Plant of Great Depths Foundation, a low powered wind electric station is working today. Also, the citizens of Belokan district have been using electricity generated by water electric stations which produce power up to 5 kilowatts.

The national commission on energy regulation of Georgia, from the beginning of January, 2006 has affirmed the new consumers' tariff for natural gas in Tbilisi and regions.

In particular, tariff in Tbilisi has increased from 265, 5 to 342 lari (over $1900) per 1000 cubic meters of gas.

The regulation commission mentioned that it's only a component of import that is changed in the tariff, which is caused by an increase in natural gas delivery cost from $65 to $110 per 1000 cubic meters of the "blue fuel".

In addition, the commission has affirmed the tariffs on gas for "Tbilgazi" company (200, 41 lari per 1000 cubic meters without VAT), "Intera-Georgia" (209, 05 lari per 1000 cubic meters without VAT), "Energy- Invest" (205, 66 lari per 100 cubic meters without VAT). The tariff of the gas transporting company of Georgia hasn't changed and makes up 201, 42 lari per 1000 cubic meters of gas (without VAT).

All the other companies who are the main consumers of gas must present to the commission their requests for correction of the tariff by May 1, 2006.

To protect the interests of Georgian people, and to extinguish the difference between the present and future prices of gas deliveries, resources will be apportioned to subsidize branches (from January to May 1, 2006). In particular, subsidies for 209 thousand subscribers will be provided by the Kazakh Company "Kaztransgas"-the future owner of Tbilisi gas distributive company, "Tbilgazi".
Subsidies for the population living in the regions-about 150 thousand subscribers--will be produced from government sources.

According to the technological scheme of the project of Astara module type electric station, the station itself was electrified by the Swiss- Swedish ABB Corporation.
The Corporation also built a 110 kilovolt substation that is situated near the electric station.
According to Tatu Dunder, the coordinator of the project from ABB, one of the functions of the company is to organize the transportation's system of the produced electric energy by module generators. In the process of this work, the company stays in close contact with the partners from the local company AZENCO.

*The first generator of Astara module type electric station began its work on February 1, 2006. Ten generators with a total power of 87 megawatts are planned.