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Ilham Aliyev: Rosneft-SOCAR agreement opens new page in Russia-Azerbaijan cooperation

Russia’s oil major Rosneft and the State Oil Company of Azerbaijan Republic (SOCAR) will set up a joint venture on a parity basis

BAKU, August 13 (Itar-Tass) - An agreement Russia’s oil major Rosneft and the State Oil Company of Azerbaijan Republic (SOCAR) signed on Tuesday opens a new page in the cooperation between the two countries, Azerbaijani President Ilham Aliyev said after talks with his Russian counterpart Vladimir Putin.

“Russia and Azerbaijan are producers and exporters of energy resources,” he said. “Our interests in this sphere coincide. So, as far as regional energy situation is concerned, much will depend on active cooperation and coordination of our efforts.” He said he was satisfied with growing trade between the two countries, noting that “the structure of trade is also positive.”

Russia’s oil major Rosneft and the State Oil Company of Azerbaijan Republic (SOCAR) will set up a joint venture on a parity basis that will be engaged in oil production and sales, Russian Minister of Energy Alexander Novak told journalists.

“A fifty-fifty joint venture is being established,” he said. “It is supposed to be engaged in joint prospecting and developing of fields in Russia and Azerbaijan.”

“Apart from that, this joint venture will market its products and will jointly use the corresponding infrastructure to deliver oil and oil products,” he noted.

According to Novak, the two companies had signed a framework agreement. “Later on, the companies will look at details of various options of mutual supplies, purchase and sale of oil, possible swap deals, exchange of assets,” he added.