BAKU, Azerbaijan, Jan.26
By Leman Zeynalova – Trend:
The OPEC+ deal to reduce oil production has positively impacted Azerbaijan’s oil industry and SOCAR’s economic position, Ibrahim Ahmadov, deputy head of the public relations and events department at SOCAR, told Trend.
“Many onshore oil fields in Azerbaijan have more than 100 years of exploitation period. Oil recovery factor of old fields has naturally declined and their development became unprofitable with lower oil prices. Therefore, as part of the OPEC+ deal, SOCAR has temporarily suspended the development of fields with lower profitability.
Many oil refineries throughout the world temporarily ceased operation due to the lower demand for fuel. SOCAR’s oil refineries continued production except for the planned repair period.
Our plants adapted to the changing market requirements and continued operation with some adjustments in the volume of different product types. For example, Turkey imports the major part of diesel and even if the overall demand goes down, there is a demand for additional diesel produced domestically. SOCAR’s STAR Refinery adapted to the pandemic period by reducing jet fuel output and increasing diesel production.
The same practice was applied in Baku Oil Refinery. Out Petkim petrochemical complex in Aliaga, Turkey, also made some modifications in product types. It started producing products needed for the output of mask and other medical supplies. Petkim even managed to increase its revenues despite the crisis.
Azerikimya production union in Sumgayit began producing isopropyl alcohol to meet the demand for disinfectants in Azerbaijan and neighboring countries.
Boosting SOCAR’s sustainability is a long process and a big project. This issue was on the agenda even before the pandemic. The main feature and constant challenge of the modern era is not the pandemic, but the fourth industrial revolution,” he said.
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