OREANDA-NEWS. June 03, 2009. Azerbaijan considers Russia’s proposal concerning modification of the intergovernmental agreement on Azerbaijani oil transit through Russia via Baku-Novorossiysk pipeline.

State Oil Company of Azerbaijan Republic (SOCAR) Vice-President Elshad Nasirov said he observed serous progress in negotiations thanks to Turkey’s much more constructive position and the same thing about the Ministry of Energy and BOTAS.

“We always thought about our position as constructive, therefore success of the talks depends only on Turkey. We understand the position that Turkish population pays much attention to price factor of our deliveries. Nevertheless, in this case the approach can be changed not in favour of growth, but approaching to fair prices,” Nasirov emphasized.

Earlier Turkey’s Prime Minister Recep Tayyip Erdogan said the price of \\$120 per 1,000 cu m is fair.

“Turkey could optimize prices by approaching those to fairer amounts (we don’t require prices to be equivalent to increased Russian prices). The fact the sides achieved market prices is already a positive result for Turkey at the negotiations, since if we have an opportunity to deliver extra gas from Shah Deniz-2 we will demand immediate price growth at Stage 1 and high prices at Stage 2 from Turkey. But we don’t do that as I think any contract on long-term deliveries can work only if customer and seller are equally satisfied. Otherwise, the sides will be forced to face durable talks or arbitral examinations. Today we observe the process of parties’ quick approaching to a fair, compromise and market decision.” Nasirov said.

Azerbaijan negotiates with Turkey for increasing prices for gas exported from Shah Deniz for over three years.