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Image courtesy of Socar

Russia is in talks with Azerbaijan to use an oil pipeline to ship Russian oil to Europe.

The pipeline for years has carried Azeri oil to Europe via Russia.

The BP-led pipeline from Azerbaijan to Turkey is now used at half its capacity of 1.2 million barrels per day because of depletion of the Azeri Caspian Sea fields, Reuters said.

Russia’s Rosneft may transport up to 5 million tonnes of oil a year (100,000 barrels per day) through Azerbaijan, according to Rovnag Abdullayev, president of Azerbaijan’s state oil firm Socar.

Some of the Russian crude would be processed in Azeri refineries and some would be exported through the BP-led Ceyhan pipeline, he said.

Rosneft is also interested in Socar’s oil loading facilities in Ceyhan (Turkey), Singapore and Fujairah (UAE), Abdullayev said.

Last week Socar and Rosneft signed a cooperation agreement but didn’t agree on specific projects.