Weekly digest of Azerbaijan’s oil & gas sector

Oil&Gas Materials 10 August 2020 13:04 (UTC +04:00)
Weekly digest of Azerbaijan’s oil & gas sector

BAKU, Azerbaijan, Aug.10

By Leman Zeynalova – Trend:

Another batch of Azerbaijani oil sent for Belarus

Another tanker with Azerbaijani oil for Belarus left the port of Supsa on August 2, Belneftekhim (Belarusian State Concern for Oil and Chemistry) told Trend.

Equinor reduces production from Azeri-Chirag-Gunashli

Norway’s Equinor company, which holds 7.27 percent share in Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea, produced 34,200 barrels of oil equivalent per day (boed) of liquids in the second quarter of 2020, as compared to 38,100 boed in the first quarter of 2020.

SOCAR discloses August plans for Baku-Novorossiysk

Azerbaijan’s state oil company SOCAR plans to transport 85,000 tons of oil via the Baku-Novorossiysk pipeline in August, the company told Trend.

The company plans to pump 585,000 tons by the end of this year.

SOCAR Construction eyes participation in Belarusian main oil pipeline project

SOCAR Construction Limited Liability Company, a subsidiary of the Azerbaijan’s state oil company SOCAR, is negotiating with Belorusneft on participation in the construction of the Gomel-Gorki main oil pipeline in Belarus.

TAP issues invitation to tender for ‘Supply of Gas for Operational Purposes’

The Trans Adriatic Pipeline (TAP) AG consortium, engaged in construction of the pipeline to supply Azerbaijani gas to Europe, issued the invitation to tender for ‘Supply of Gas for Operational Purposes’ to qualifying bidders on July 13, 2020, Vugar Veysalov, TAP Head of External Affairs, told Trend.

Veysalov noted that TAP will evaluate the proposals received and award contracts to the winning bidders in time for the start of TAP commercial operations.

SOCAR Trading submits lowest bid for another LNG supply to Pakistan

SOCAR Trading, the international marketing and development arm of Azerbaijan’s state oil company SOCAR, has submitted the lowest bid for liquefied natural gas supply to Pakistan on Sept. 12-13.

The company offered 6.9511 percent of Brent price leaving behind South Korea’s Posco International Corp.

Turkish BOTAS discloses volume of oil shipment from Ceyhan terminal

Turkish BOTAS International Limited (BIL) has to date shipped nearly 3.5 billion barrels of oil from Ceyhan oil terminal.

The BIL data shows that 4,551 tankers with oil from Azeri-Chirag-Gunashli (ACG) block of fields have been loaded from the terminal to date.

Some 170 tankers with ACG oil (around 130.6 million barrels of oil) were shipped from the Ceyhan oil terminal since the beginning of 2020.

SOCAR Petroleum explains reasons of increasing gasoline prices

The price of Euro-95 (Premium) gasoline has increased in Azerbaijan from 1.20 manat to 1.25 manat per liter, spokesperson for SOCAR Petroleum CJSC Uzeyir Habibbeyli told Trend.

“As you know, Premium is imported from such countries as Romania and Russia. From 8 am today, prices were increased from 1.20 manat to 1.25 manat per liter due to the increase in purchase prices,” he said.

As for the possibility of raising the prices for Premium to 1.50 manat, Habibbeyli noted that there are no such plans at the moment.

How will BP’s new strategy affect business in Azerbaijan?

BP is absolutely committed to continuing to operate a safe, reliable and resilient oil and gas business in Azerbaijan, BP Azerbaijan told Trend answering the question whether the company’s new strategy will affect its business in Azerbaijan.

“In Azerbaijan, we have the responsibility to explore and develop the country’s major oil and gas resources. We remain committed to that responsibility which is very important to us,” the company said.

BP Azerbaijan said it will continue to be successful in everything it does in this country by maintaining the industry-leading position of the company’s oil and gas business here in terms of quality.

“So, we are absolutely committed to continuing to operate a safe, reliable and resilient oil and gas business in Azerbaijan and generate revenues to the nation and our shareholders. We have been present in Azerbaijan and the Caspian region for around three decades investing in production, transportation and exploration. We will continue our oil and gas business here including investment in exploration in decades to come while we also will continue to look for opportunities to expand our relationship with Azerbaijan and the region on a range of other areas of our long-term energy partnership,” said the company.

Ukrtransnafta starts unloading Azeri Light oil for Belarus

Ukrtransnafta JSC of Ukraine began unloading a tanker with 85,000 tons of Azeri Light oil at the Pivdennyi oil terminal (Odessa region) on August 5 for its subsequent transportation to Belarus,.

This is already the sixth tanker with oil, which will be transported via the Odessa-Brody oil pipeline and along one of the two lines of the Druzhba oil pipeline to Mozyr refinery (Belarus) under the agreement with the subsidiary Belarusian oil company by the end of 2020.

Liebherr-MCCtec Rostock to deliver cranes offshore Azerbaijan

German-based Crane specialist Liebherr will deliver what it describes as offshore cranes of the latest generation for Caspian Sea platforms, offshore Azerbaijan.

Liebherr-MCCtec Rostock has received an order from Umid Babek Operating Company to deliver four new offshore cranes of the Board Offshore Crane (BOS) Series.

Four new cranes of the BOS-series will be installed next year on two offshore platforms in the Caspian Sea.

SOCAR, Petrofac ink support services contract

SOCAR Midstream Operations Limited, subsidiary of Azerbaijan’s state oil company SOCAR, and engineering and production services department of UK-based Petrofac company have signed a support services contract for handing over the technical operatoriship of the South Caucasus Pipeline.

The new contract envisages support to handing over the operation assets, since SOCAR took over the technical operatorship of the South Caucasus Pipeline from BP.

The services include technical inspection of the gas pipeline and other facilities during the handover period, as well as routine support during the period of handover, execution and in preparing the operational readiness plan.

SOCAR talks on possible reason of fire on Azerikimya production union’s territory

The fire on the territory of the Azerikimya production union of the Azerbaijani state company SOCAR was not related to the production process, Ibrahim Ahmadov, deputy head of the public relations and events department at SOCAR, told Trend.

“There was a fire on the territory of the Azerikimya production union. The fire was not related to the production process, since the plant has not been operating for three days already, it has stopped for repairs. Our assumption is that this could occur in the process of construction work carried out as part of modernization. The fire covered a very small area and was extinguished in a few minutes. This did not cause much damage to the plant. But several of our employees, employees of the Azfen contractor company, which is participating in the modernization project, got burn injuries,” he said.

MOL Group discloses Azeri-Chirag-Gunashli production volume

The average of the entire production of Hungarian MOL Group from Azeri-Chirag-Gunashli (ACG) block of oil fields in the Azerbaijani sector of the Caspian Sea for the first half of 2020 is 8.2 million barrels per day.

“Average daily entitlement production amounted to 19.6 mbpd for the period from deal closing to 30th June, whereas the average of the entire H1 2020 is 8.2 mbpd for MOL,” said the company.

MOL Group reveals net revenue from Azeri-Chirag-Gunashli

The net revenue of Hungarian MOL Group from the Azeri-Chirag-Gunashli (ACG) block of oil fields in the Azerbaijani sector of the Caspian Sea stood at 8,800,000,000 HUF ($30,080,001) during the period from 16 April 2020 to 30 June 2020.

The company’s profit during this period amounted to 3,965,000,000 HUF ($13,553,091), reads the MOL Group’s report.

Explosion occurs on SOCAR’s gas pipeline

An accident occurred on the 23-kilometer part of the Galmaz-Gazimamed gas pipeline with a diameter of 720 millimeters, on Aug.7, at about 20:55, Ibrahim Ahmadov, deputy head of the public relations and events department at Azerbaijan's state oil company SOCAR, told Trend.

“The gas pipeline was put into operation in 1975. This gas pipeline operates within the internal distribution system and is not connected to other gas pipelines. The accident has been localized and the fire has almost been extinguished. The explosion didn’t cause any restrictions on gas supply throughout the country and no interruptions in gas supply are expected. All strategic facilities are supplied with gas,” he said.


Follow the author on Twitter: @Lyaman_Zeyn