Gobustan Operating Company might increase prices of commercial gas for Azerbaijan

Oil&Gas Materials 26 April 2006 14:56 (UTC +04:00)

Gobustan Operating Company (GOC), which is involved in the development of South-West Gobustan contract area, might increase the cost of the commercial vacant gas for Azerbaijan, Trend reports. Arawak Energy, a participant in the project, said that following rise in fuel prices in CIS, the gas prices which currently comprises $1.33 per 1 million, might increase.

Earlier the gas price made up $1.29 per 1 million BTU ($1.29/1 million BTU some $46 per 1000 cubic meters).

At present gas from the Southwest Gobustan is delivered mainly to cover the demand of the petro-chemical industry. Opportunities for gas export can be estimated through setting up stable fuel production, the document underlines.

GOC transports gas to Azerbaijan from 2 wells located in South-West Gobustan in the volume of 100,000 cu m per a day.

The SOCAR said that as soon as the technical problems are resolved gas will be delivered from 4 existing wells in the contract area in the volume of 250,000 cu m a day. After the commissioning of the fifth wells the volume of gas for sale will be increased to 350,000 cu m.

Southwestern Gobustan is developed by GOC under PSA, concluded with SOCAR. 80% of the share at Gobustan Operating Company belongs to Commonwealth Gobustan Limited, 20% - SOCAR. 37.17% of the share at Commonwealth Gobustan Limited 37.17% belongs to Arawak Energy, 62.83% - China National Petroleum Company.