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REAL SECTOR

Politics Materials 5 October 2006 12:04 (UTC +04:00)

Production

Р°) Oil and Gas production

Oil and gas production by SOCAR in January to August 2006

Oil

(ths. tons)

August

July

January to August

2006

2006

2006

2005

%

Total

781,3

753,1

5984,8

5991,2

- 0,1

OGPUs of SOCAR

677,7

650,4

5237,4

5245,0

- 0,1

JVs and OCs

103,6

102,7

747,4

746,2

0,2

Gas

(in mln cu m)

Total

550,97

498,15

4434,68

3589,6

23,5

OGPUs of SOCAR

372,22

345,90

2631,42

2528,5

3,5

JVs and OCs

9,00

8,97

75,36

86,3

-12,7

AIOC

168,81

124,20

1689,46

974,8

73,3


Source: SOCAR

In January to August 2006 the State Oil Company of Azerbaijan (SOCAR) produced 5,984,800 tons of oil from onshore and offshore fields or 6,400 less as compared 2005. The onshore and offshore oil and gas producing units (OGPU) of the SOCAR produced a total of 5,237,400 tons of oil, or 7,600 tons (or 0.1%) down as compared to 2005.

Over the first 8 months of 2006 the foreign companies under the joint ventures and operating companies lifted 747,400 tons of oil, or 1,200 tons (or 0.2%) more as compared 2005.

In this period gas production amounted 4,434,68 billion cu m of natural gas, or 845.1 million cu m (or 23.5%) more than 2005. The OGPUs produced 2,631,42 tons of gas, or 102.9 million cu m more than 2005. JVs and OCs produced 75.36 million cu m of gas in this period, or 10.9 million cu m less than 2005. The Azerbaijan International Operating Company (AIOC) produced 1,689,46 cu m of associate gas, or 714.7 million cu m of fuel more as compared 2005.

There are 57 oil and gas fields in Azerbaijan, including 18 offshore. The eprosnnel pf the SOCAR numbers 59,170 people

b) Oil and Gas refinery

Production of major types of oil products in January to August 2006

In ths tons

January-August 2006

January-August

2005 %

Stock 01.09.06

Automobile petroleum

637,8

110

20,4

Aviation kerosene

509

107

11,2

Fuel mazut

2047,0

103,8

53,2

Diesel fuel

1482,5

114,4

58,1

Oil bitumen

97,4

134,5

0,6

Oil coke

Lubricating oil

44,3

196

12,5

Naphta

240,5

103,5

0,5

Source: State Statistics Committee

The Baku Oil Refineries, parts of the State Oil Company of Azerbaijan (SOCAR), former Azerneftyanacag and Azerneftyag, produced 5,058,500 tons of various oil products during January-August 2006, which is 10.7% more of the same period of 2005.

Particularly, production of gasoline grew by 10%, kerosene 7%, diesel fuel 14.4%, mazut 3.8%. Growth was achieved in the production of lubricating oil 96% and oil bitumen 34.5% in January-August 2006 as compared to the same period of the last year.

c) Sale

The Marketing and Economic Operations Department (MEPD) of the State Oil Company of Azerbaijan Republic (SOCAR) has exported 2,180,576 mln tones of oil products against 1,334,417 in the same period of 2005.

In August, 180.737 tones of oil products (against 113,950 tons last year) were exported from oil refining plant of Azerbaijan. The most volume of the gross exportations was reported at the share of diesel oil, which reached 1,215,000 tones, mazut 716,751 tons, gasoline 216,871 tons, aviation kerosene 174,888 tons, naphtha 29,965 tons, lubricating oil 23,902 tons and bitumen 9,983 tons.

The most expensive oil product in August was gasoline 1 t. for $712,24. The price of aviation kerosene in August was $695,60, diesel - $641,57, naphtha - $592.66, mazut - $311.47.

Export of oil products in January August 2006 (in ths tons)

Title

July 2006

August 2006

January to January 2006

Price of per ton in July (+/-June)

Diesel oil

155,631

103,689

1008,215

$641,57

($25,58)

Mazut

103,898

1,09

716,651

$311,47

(-$17,46)

Gasoline

26,043

46,461

216,871

$695,60 (-$59,15)

Aviation kerosene

20,611

19,424

174,888

$712,24 (+$20,7)

Naphtha

29,965

$592,66 (-$20,94)

Lubricating oil

4,377

9,201

23,902

Bitumen

1,415

0,874

9,983

2. Power Engineering

Over 1,756 billion kW/h of electricity was generated in the system of Azerenerji JSC in July 2006, or 7.8% more than 2005.

Azerenerji announced that 1.6 billion kW/h of entire generation fell on thermo-power stations, 0.146 billion kW/h hydro-power stations.

As a result of energy exchange in August 66,998 million kW/h was imported from Russia, 38,711 million from Iran, and 19,774 billion kW/h from Turkey.

Since the beginning of the year Azenerji has generated 15,948 billion KW/h electricity, including 13,982 billion KW/h generated by the thermo-power stations. Energy import exceeded 1,203 billion kW/h, or 12.1% down as compared to last year. Electricity export exceeded 602 milion KW/h.

3. Chemical complex

During the period of January to August 2006, State Enterprise Azerkimya kept raising chemicals production. The Azerbaijani State Statistics Committee told Trend the production of hydrate of sodium rose by 32.5%, propylene by 36.7%, nitrogen by 43.8%, ethylene by 34.9%, polyethylene by 35.7 over year.

Production of main chemicals in January-August 2006

Production

Production in January-August 2006

Annual increase, %

, %

Amount of remains of ready production as of 01.09.2006

Nitrogen (mln m3)

(mln m3)

7,8

143,8

hydrate of sodium (thous ton)

22,5

132,5

129,1

Propylene (thous ton)

(thous ton)

27,5

136,7

0,5

Ethylene (thous ton)

51,8

134,9

Polyethylene (thous ton)

(thous ton)

50,2

135,7

0,8

Isopropyl alcohol (thous ton)

16,7

99,5

0,5

Paint-and-lacquer materials (ton)

560,2

45,3

205,7

Clorine oxide (thous ton)

(thous ton)

4,7

102,2

0,1

Source: State Statistics Committee

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