Major events in Caspian countries' oil and gas industry for last week (May 21 - 26)
Azerbaijan to assist in hydrocarbon exploration in Saudi Arabia
The State Oil Company of Azerbaijan (SOCAR) and Foroof International (Saudi Arabia) in Baku signed a memorandum of understanding and long term projects in the petroleum sector in the Kingdom of Saudi Arabia.
The memorandum was signed by SOCAR president Rovnag Abdullayev and Prince Bander Bin Abdullah Bin Mohammed Al Saud.
The contract will be prepared within a month, Abdullayev said after the signing ceremony. A joint venture in which SOCAR will have 75 per cent equity will operate in Saudi Arabia in the coming months.
The contract includes the work of SOCAR in the oil and gas sector of Saudi Arabia and in particular the exploration of gas structures and the geological, geophysical and other works in which SOCAR has considerable experience.
Azerbaijan's oil production expected to reach 900,000 bpd in 2012
Azerbaijan's oil production is expected to reach around 900,000 barrels per day in 2012, Platts reported with the reference to the head of the Foreign Investment Department of the State Oil Company of Azerbaijan (SOCAR) Vagif Aliyev.
Aliyev said at the CIS Oil and Gas Summit in Paris on Tuesday that the country's gas production will hit about 27-28 billion cubic meters this year.
According to Aliyev, by 2015, Azerbaijan expects to boost its hydrocarbons production to 50-55 million mt/year of oil and 30 billion cubic meters per year.
According to the Azerbaijani State Statistics Committee, in January - April 2012, Azerbaijan extracted 14.77 million tons of crude oil and condensate, which is 6.9 percent less than in January-April 2011. In total, Azerbaijan produced 45.37 million tons of oil in 2011 compared to 50.83 million tons in 2010.
Gas production hit 5.96 billion cubic meters in January - April 2012, or 9.9 percent more than in January - April 2011.
About 26 billion cubic meters of gas were extracted in the country in 2011 compared to 26.23 billion cubic meters of gas in 2010.
Preliminary date of announcement of contractors under Shah Deniz 2 named
According to preliminary data, during the autumn of 2012 British BP will determine construction contractors in the second stage of development of Azerbaijani Shah Deniz gas condensate field in the Caspian Sea, an oil and gas market source told Trend on Thursday.
He said that after BP's decision matter of choice would be agreed with the State Oil Company of Azerbaijan (SOCAR).
"The final decision on the choice of contractors will be announced in early 2013," the source said.
Nabucco's original no longer considered as option to transport Azerbaijani gas
Original concept of Nabucco gas pipeline project is no longer considered as a possible export route for Azerbaijani gas, Reuters reported with the reference to BP's head of fuel refining and marketing Iain Conn.
Conn said that the partners on Azerbaijani Shah Deniz gas condensate field development are now considering only two options to transport gas - Nabucco West, which is a shorter version of original project and the South East Europe Pipeline (SEEP).
The choice between Nabucco West and SEEP projects will be made in June.
Study of two structures in Azerbaijani sector of Caspian Sea complete
The work which is part of the three-dimensional geophysical studies at the Umid field and prospective structure Babak in the Azerbaijani sector of Caspian Sea is complete, a source at oil and gas market told Trend.
"Work at the contract areas has been completed and the data received is good," the source said.
Agreement on North-Caspian project signed in Kazakhstan
Agreement on the settlement of certain questions of the North-Caspian project between the Government of Kazakhstan and the contracting companies of the North-Caspian project (KMG Kashagan BV, Agip Caspian Sea BV, ExxonMobil Kazakhstan Inc., Shell Kazakhstan Development BV and Total EIT Kazakhstan - 16.81%, ConocoPhillips North Caspian Ltd.. - 8.4%, and Inpex North Caspian Ltd. - 7.56%) signed on Wednesday, press service of the Ministry of Oil and Gas of Kazakhstan told Trend.
In accordance with the agreements sides approve amendment to plan and budget of development of the Kashagan field, which allows to reach commercial production in Kashagan from December 2012 to June 2013.
To provide further mutually beneficial cooperation between the parties in implementing the North-Caspian project in frame of Agreement on settlement the parties agreed: to fund for account of the Consortium the share of investments of JSC NC "KazMunayGas" in the project for the period 2012-2013 years; to sign long-term sales contract on Kashagan gas of phase 1, which provides delivery of up to 83% of the volume of gas to the domestic market up to 2041 between "KazTransGas" and contracting companies; not to reimburse a portion of the costs incurred by the contractor.
In addition, Kazakhstan and the contracting companies have reached a number of agreements aimed at achieving maximum clarity on issues such as taxation and cost recovery.
Turkmenistan signs major agreement with TAPI gas buyers
On Wednesday, Turkmenistan signed an agreement for the sale and purchase of natural gas as part of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, an official Turkmen source said today.
Buyers are gas companies State Gas Systems of Pakistan and India's GAIL ltd. The Afghan side, through which it is planned to carry out the transit of raw materials, is represented by its branch ministry. A Memorandum of Understanding has been signed with Kabul.
Representatives of the Asian Development Bank participated in preparation of the agreement.
International gas congress opens in Turkmenistan
The Third International Gas Congress of Turkmenistan - TGC 2012 has opened at the national Avaza tourist zone in Turkmenistan on the Caspian Sea shore, the official Turkmen source said on Wednesday
Organisers are the Turkmengaz State Concern, Commerce and Industry Chamber of Turkmenistan and Summit Trade Events (UK).
An extensive programme will touch upon the current issues of the development of Turkmenistan's gas industry and the opportunities for investment in the sector.
The congress is being attended by about 500 delegates from 150 companies and organisations from 32 countries. Among the delegates are heads, senior managers and representatives of companies, specialists of Turkmenistan's oil and gas complex, foreign VIP-guests, diplomats accredited to Turkmenistan and representatives of local and foreign press.