Weekly review of Azerbaijan's oil & gas sector

Oil&Gas Materials 30 October 2021 12:49 (UTC +04:00)
Weekly review of Azerbaijan's oil & gas sector

BAKU, Azerbaijan, Oct.30

By Sadraddin Aghjayev - Trend:

The China National Petroleum Corporation (CNPC) has sold its 50 percent stake in Azerbaijan's Kursangi and Garabagly oil fields.

It was reported this week that the share of CNPC will be acquired by the private Azerbaijani company GL LTD, which is engaged in oil exploration and production. The deal is expected to close by the end of November.

In addition, it became known this week that the Azeri Central East (ACE) platform at the Azeri-Chirag-Guneshli (ACG) block in the Azerbaijani sector of the Caspian will be commissioned in the coming months. Azeri Central East is the next stage in the development of ACG.

It was also reported that Akin Gump, the US-based law firm, has advised PSJC LUKOIL in its acquisition of a 15.5 percent interest in the Shah Deniz natural gas project in Azerbaijan sector of the Caspian Sea, from Malaysia’s PETRONAS. The deal is valued at $2.25 billion and its completion is subject to certain preconditions, including approval by the State Oil Company of Azerbaijan (SOCAR). The corresponding agreement on the deal was signed on October 7, 2021.

Furthermore, this week it became known that the drilling of the first exploration well in the shallow waters of the Absheron Peninsula (SWAP) is on schedule. In total, within the framework of the SWAP project, bp plans to drill three exploration wells.

Also, this week, bp has completed 50 percent of construction work on the Azeri Central East (ACE) platform at the Azeri-Chirag-Guneshli (ACG) block. Construction is scheduled for completion in 2022, with the first production scheduled for 2023.

Moreover, it was reported that in 2022 the Japan International Cooperation Agency (JICA) will publish a report on the results of studies of the electric power system of Azerbaijan. As part of the studies, JICA will consider improvement plans and possible projects in this sector that will contribute to the achievement of energy security in Azerbaijan.


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