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Weekly review of key events in Azerbaijan's oil, gas sector

Oil&Gas Materials 24 April 2021 19:15 (UTC +04:00)
Weekly review of key events in Azerbaijan's oil, gas sector

BAKU, Azerbaijan, Apr.24

By Fidan Babayeva - Trend:

This week, Turkish President Recep Tayyip Erdogan ratified an agreement on cooperation with Azerbaijan in the energy and mining fields, signed on February 25, 2020, Trend reports.

The purpose of this document is to promote the development of bilateral scientific, technical, technological, legal, administrative and commercial cooperation between the two countries in the field of energy and mining, including in the fields of renewable energy sources and energy efficiency, and the organization of energy production.

Besides, this week, the International Monetary Fund (IMF) predicted a decline in the fiscal breakeven oil price (the price of oil at which the fiscal balance is zero) for Azerbaijan from $82.5 per barrel in 2021 to $66.4 per barrel in 2022.

The external breakeven oil price (the price of oil at which the current account balance is zero) for Azerbaijan is expected to be $98.6 per barrel in 2021 and $98 per barrel in 2022.

Moreover, on April 23, it became known that North Macedonia and Greece in early May will sign an agreement on a pipeline project that will provide access to Azerbaijani gas. The signing will take place during the visit of the Prime Minister of North Macedonia Zoran Zaev to Greece.

The Greek part of the project will be developed by the DESFA gas network operator. The length of the Greek section of the pipeline will be 50 kilometers.

North Macedonia will get access to Azerbaijani gas through an interconnector with Greece.

This week, the Turkish Yapi Kredi Bank published its forecast, according to which the sales of the Petkim petrochemical complex to the State Oil Company of Azerbaijan (SOCAR) in Turkey are expected at 18.9 billion Turkish liras in 2021, and 17.1 billion Turkish liras in 2022.

The gross profit of the petrochemical complex is projected at over 3.25 billion Turkish liras and 2.4 billion Turkish liras in 2021 and 2022, respectively (up from 1.88 billion liras in 2020).

The bank estimates that Petkim will have a net income of over 1.64 billion Turkish liras in 2021 and 1.195 billion Turkish lira in 2022 (up from 1.088 billion lira in 2020).

The bank also expects Petkim to pay SOCAR Turkey $240 million for an 18 percent stake in the STAR refinery.

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Follow the author on Twitter: @Fidan_Babaeva

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