* Russia ends pipeline deal with Azerbaijan
* Oil deliveries will go on this year
By Lada Evgrashina
BAKU, May 15 (Reuters) - Azerbaijan is ready to discuss anew deal to pump its oil across Russia on acceptable terms, thehead of Azeri state energy company SOCAR said on Wednesdayfollowing termination of a transhipment contract.
"The company will continue oil deliveries in case ofeconomic suitability of new (contract) conditions for SOCAR,"Rovnag Abdullayev told reporters on Wednesday. "In case ofeconomic unsuitability, deliveries won't be implemented."
Russia terminated a 1996 contract with Azerbaijan onTuesday, as Azerbaijan failed to ship agreed quantities.
The contract allowed Azerbaijan to pump oil through a1,330-km pipeline from the capital, Baku to the Russian BlackSea port of Novorossiisk.
Under the agreement, Azerbaijan promised to ship no lessthan 5.0 million tonnes a year by 2002 through the pipeline, butit now pumps around 2 million tonnes annually.
Abdullayev said SOCAR was also ready to discuss with Russiathe possibility of oil shipments from third countries and otheroil transportation schemes.
Most Azeri oil is exported via the pipelines to Turkey andGeorgia, operated by British company BP, with only arelatively small amount passing through Russia. Former Sovietrepublic Azerbaijan lies between Russia and Iran on the westerncoast of the Caspian Sea.
"There will be no problems with oil exports. We haveBaku-Tbilisi-Ceyhan route, Baku-Supsa and a railway," Abdullayevsaid, referring to the pipelines to Turkish and Georgian portson the Black Sea.
Russian oil pipeline monopoly Transneft, whichoperates the Russian section of the route and has a separatecommercial contract with Azerbaijan, said on Tuesday deliveriesof Azeri oil would not be affected this year, but its terms oftransit could change substantially from 2014.
Transneft also said it might offer a new contract toAzerbaijan based on a "pump or pay" principle.