Gazprom inks contract with SOCAR

BAKU, Azerbaijan, Oct. 16 (UPI) -- Russian energy giant Gazprom signed a purchase and sale contract for more than 1.7 billion cubic feet of gas from the State Oil Co. of Azerbaijan Republic.

Alexei Miller, chairman of the Russian gas monopoly, led a delegation to Baku to sign a natural gas purchase and sale contract with SOCAR.

"Our partnership is logically consistent and fully meets our mutual interests," said Miller. "I am confident that in the coming years the volume of Azerbaijani gas supplied to Russia will increase and today's contract will lay the foundation for the long-term strategic cooperation in the oil and gas sector between Gazprom and SOCAR."

The initial volume of gas delivered to Gazprom is for 1.76 billion cubic feet of natural gas per year with increases dependent on Azerbaijan's export potential, Gazprom said.

The contract puts no limit on purchase volumes. Exports begin in January.

Azerbaijan holds as much as 45.9 trillion feet of recoverable gas reserves. Gazprom and SOCAR signed a series of preliminary agreements on natural gas earlier this year.