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Review of oil and gas operations in Azerbaijan (January-February 2017)

Analysis Materials 12 April 2017 17:08 (UTC +04:00)

1. FEC

а) Oil and Gas Production

As much as 6.35 million tons of oil and gas condensate were produced in Azerbaijan in Jan.-Feb. 2017 that is by 7.4 percent less than in Jan.-Feb. 2016, according to a report of the country’s State Statistics Committee.

In 2016, 41.03 million tons of oil and gas condensate were produced in Azerbaijan, which is by 1.5 percent less than in 2015.

Main volume of oil production in Azerbaijan accounts for the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields.

The production of commercial gas in Azerbaijan stood at 3.26 billion cubic meters in Jan.-Feb. 2017 that is by 5.3 percent more than in Jan.-Feb. 2016, according to the country’s State Statistics Committee.

The commercial gas production stood at 18.71 billion cubic meters in Azerbaijan in 2016, as compared to 19.72 billion cubic meters in 2015.

Azerbaijan’s state oil company SOCAR produced 1.22 million tons of oil from the country’s onshore and offshore fields in Jan.-Feb. 2017, as compared to 1.25 million tons in Jan.-Feb. 2016, SOCAR said in a message.

SOCAR produces oil from offshore and onshore fields of Azerbaijan using its own funds.

A part of this oil is processed at refineries in Baku, while the other part is exported via the Baku-Novorossiysk and the Baku-Tbilisi-Ceyhan pipelines.

Moreover, SOCAR produces light oil from Azeri-Chirag-Guneshli block of oil and gas fields jointly with foreign partners.

SOCAR produced 958.3 million cubic meters of gas from the country’s offshore and onshore fields using its own funds in Jan.-Feb.2017, as compared to 1.05 billion cubic meters of gas produced in the same period of 2016.

In addition to its own production, SOCAR also gets associated gas from the Shah Deniz and Azeri-Chirag-Gunashli fields by developing these fields in cooperation with foreign partners.

The total volume of gas produced from those fields and independently developed ones was 4.69 billion cubic meters in Jan.-Feb. 2017, as compared to 4.89 billion cubic meters in Jan.-Feb. 2016.

SOCAR drilled 18,580 meters in January-February 2017 against 16,850 meters drilled in the same period of 2016.

All drilling operations in 2017 accounted for production drilling.

SOCAR has commissioned 13 new wells since the beginning of 2017.

Some 1.5 billion manat were invested in Azerbaijan’s oil and gas sector in January-February 2017 compared to 1.39 billion manat (8 percent increase) in the same period of 2016, the Azerbaijani State Statistics Committee said in a report as of January-February 2017.

b) Processing

Azerbaijan produced 852,500 tons of oil products in January-February 2017 compared to 944,300 tons in the same period of 2016, said a report of the Azerbaijani State Statistical Committee.

SOCAR, which is the sole producer of oil products in Azerbaijan, is currently modernizing its processing facilities, as the fuel consumption has increased in the country.

Azerbaijan produced 210,100 tons of gasoline in January-February 2017, which is 17 percent more than in the same period of 2016.

Azerbaijan produced 5.17 million tons of oil products in 2016 compared to 5.45 million tons in 2015.

Below is the summary table of the output of oil products in Azerbaijan:

Oil products

Jan.-Feb. 2017 (thousand tons)

Compared to Jan.-Feb. 2016 (%)

Gasoline

210,1

117

Naphtha

33,9

121,9

Kerosene

105,2

92,7

Diesel fuel

316,4

86,4

Fuel oil

144,9

63

Lubricants

3

by 3,3 times

Oil bitumen

10,8

56

Oil coke

28,2

by 3,9 times

2. Chemical complex

Azerbaijan produced 9,200 tons of propylene in Jan.-Feb. 2017 that is by 10.9 percent more than in Jan.-Feb. 2016, the Azerbaijani State Statistics Committee said in a report.

Azerbaijan produced 18,400 tons of polyethylene in Jan.-Feb. 2017, or 3.4 percent more than in Jan.-Feb. 2016.

As much as 28.7 tons of iodine were produced in Azerbaijan in Jan.-Feb. 2017 that is by 6.7 percent more than in Jan.-Feb. 2016.

Azerbaijan saw an increase in the production of major types of chemicals in Jan.-Feb. 2017.

Below are the figures for output of major chemicals in Azerbaijan:

Products

Jan.-Feb. 2017

Compared to Jan.-Feb. 2016

(%)

Nitrogen (1,000 cubic meters)

3,59

96

Polyethylene (1,000 tons)

18,4

103,4

Propylene (1,000 tons)

9,2

110,9

Isopropyl alcohol (1,000 tons)

2,33

76,7

Paint products (tons)

1,67

by 2,3 times

Iodine (tons)

28,7

106,7

Oxygen (1,000 tons)

392

23,3

Ethylene (1,000 tons)

19

103,3

3. Electricity

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Azerbaijan produced 4.2 billion kilowatt-hours of electricity in Jan.-Feb. 2017 or by 4.6 percent more than in Jan.-Feb. 2016, the country's State Statistics Committee's report said. Of the total volume of electricity produced in Jan.-Feb. 2017, as much as 4.02 billion kilowatt-hours accounted for commercial electricity or by 4.9 percent more than in Jan.-Feb. 2016.

This is while of the total volume of commercial electricity produced in Jan.-Feb. 2017, as much as 3.79 billion kilowatt-hours accounted for the thermal power plants, or 4.5 percent more than in Jan.-Feb. 2016.

The hydro power plants of Azerbaijan generated 216.1 million kilowatt-hours of commercial electricity in Jan.-Feb. 2017, or 10.5 percent more than in Jan.-Feb. 2016.

The wind power generating facilities produced 3.5 million kilowatt-hours of electricity in Jan.-Feb. 2017, while the solar energy facilities generated 8 million kilowatt-hours of electricity.

Azerenergy JSC is the main producer of electricity in Azerbaijan. It has over 200 substations with a capacity of 500, 330, 220 and 110 kilovolt amperes, as well as 10 hydro power plants and 14 thermal power plants.

At present, the generation capacity of Azerbaijan's power supply system is 8,100 megawatts.

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