CAPITAL: YEREVAN
MONETARY UNIT: DRAM
REFINING CAPACITY: NONE
OIL PRODUCTION: NONE
OIL RESERVES: NONE
GAS RESERVES: NONE

Armenia, with a population of 3.5 million, trades mostly with Russia, Turkmenistan, the European Union, and the US.

Energy consumption averages about 5,000 b/d of oil and 49 bcf/year of natural gas, plus an uncertain quantity of electricity.

Some wildcat drilling had occurred, all unsuccessful through 2000. Armenian American Exploration Co. spudded Azat 1 near Garni east of Yerevan on Nov. 27, 1997. It was temporarily abandoned at 3,500 m after encountering minor oil traces.

Drilling cost far exceeded the $10 million minimum expenditure of the 5-year term of the production sharing agreement, hurling AAEC into bankruptcy. The company maintained an office in Yerevan through late 2000 and still hoped to resume operations.

The 106,436 b/d Batumi refinery in Georgia Republic supplied most of Armenia's petroleum products. Armenia in 2000 had no products pipelines, so the shipments moved by truck and rail. Most of Armenia's gas came from Turkmenistan via Russian and Georgian pipelines.

Ethnic and civil disturbances, pipeline accidents, and nonpayment of debts halted gas supplies intermittently. In April 2000 gas shipments, although quickly resumed, were interrupted because of a dispute over payments.

Armrosgazprom, a company owned by the government, Gazprom, and the private Itera Co., handled all gas distribution in Armenia, but the country was looking at the feasibility of diversifying supply.

Iran in particular expected excess gas supply capability to build up from its growing exploration and development activities and suggested construction of pipelines to several countries including Armenia.

Financing had not been obtained by late 2000, but Armenia was seeking funds from the World Bank for such a pipeline and had met with officials regarding Greek participation in the project.