Azerbaijan exports over a third of oil processing products in 2014

Business Materials 7 March 2015 14:27 (UTC +04:00)

Baku, Azerbaijan, Mar.7

By Azad Hasanli - Trend:

In 2014, SOCAR (State Oil Company of Azerbaijan) processed 6.740.500 million metric tons of oil, said the report of the Cabinet of Ministers of Azerbaijan on the activity in 2014, submitted to the Milli Majlis (Parliament).

During the reporting period, the volume of produced gasoline was 1.238.300 million metric tons, jet fuel - 709,000 metric tons, diesel fuel - 2.264.800 million metric tons, liquid gas - 184,200 metric tons, bitumen - 262,900 metric tons, coke and other products - 260,100 metric tons.

Most of the processed crude oil (4.040.700 million metric tons, or 66 percent) was sold on the domestic market, while the remainder (2.078.100 million metric tons) exported to other countries.

Last year, oil refining depth was 93.2 percent.

In addition, some 3.7 billion cubic meters of gas, 3.6 billion of purified dry gas, 17,800 metric tons of commercial butane and 28,800 metric tons of natural gas gasoline were processed in 2014. All natural gas gasoline was sent to Azneft Production Association for recycling. Some 75.7 percent of commercial butane was sent to Azerkimya Production Association and 24.3 percent was sold on the domestic market.

In late 2014, the State Oil Company of Azerbaijan (SOCAR) announced about liquidation of Azneftyag oil refinery since January 1, 2015 and its merger with Baku Oil Refinery named after Heydar Aliyev as part of work on improving and optimization of SOCAR's structure. Azneftyag refinery is focused on the production of dark petroleum products, and in particular the bitumen, and Baku Oil Refinery named after Heydar Aliyev produces mostly light oil.

It should be noted that SOCAR has plans to modernize the Baku Oil Refinery named after Heydar Aliyev. Work on the reconstruction and modernization of the Baku Oil Refinery named after Heydar Aliyev is scheduled to be completed by late 2018 or early 2019. The plant will continue its work for yet another 15 years, till the commissioning of a new refinery in Azerbaijan within the framework of the OGPC project in 2030.

The cost of reconstruction of the refinery named after Heydar Aliyev is estimated at 1 billion AZN, and it will be financed by public funds. Work on the reconstruction will increase its capacity from 6 to 8 million metric tons per year. Also, the gasoline production capacity will be increased to 3 million metric tons per year.

Azerbaijan will produce 6.22 million metric tons of oil products in 2015 versus 6.17 million metric tons projected for 2014, according to the government's forecasts. From 2016 to 2018, the volume of oil production in the country is forecasted at 6.31 million metric tons per year.

The official exchange rate on March 6 is 1,049 AZN / USD.


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