OMV, SOCAR in Negotiations over Nabucco Supply

OMV, a leading partner of the Nabucco natural gas pipeline consortium, has entered into talks with Azerbaijan's state oil company SOCAR to secured gas supply for the European Union-backed pipeline project, according to the Austrian Finance Ministry.

The Shah Deniz II field presently under development in Azerbaijan has been targeted by both the EU based Nabucco and its Russian led rival, the South Stream pipeline project, as a key source of supply.

Russian President Dmitry Medvedev arrived in Azerbaijan on Thursday for a two-day visit.  The discussions between Russian and Azeri officials will undoubtedly touch on the rival pipeline projects

Russian energy giant Gazprom and SOCAR are expected to sign a deal to increase supplies of Azerbaijani gas to Russia in 2011-2012, during the Medvedev visit.