Oil and gas

1. FEC

а) Oil and gas production

In January-May 2009, roughly 20.4 million tons of oil and condensate was produced in Azerbaijan. This represents an increase of 2.3 percent compared to January-May 2008, the Azerbaijani State Statistics Committee said.

The major oil production accounts for the Azerbaijani International Operation Company, which produced 16.9 million tons of oil from the Azeri-Chirag-Guneshli field and Shah Deniz gas condensate field. This represents an increase of 3.3 percent compared to the same period in 2008.

Roughly 10 billion cubic metre of gas was produced in Azerbaijan in January-May 2009, which is by 2.4 percent more compared to the mentioned period of 2008. A total of 4.7 billion cubic metre of gas was produced from the ACG and Shah Deniz fields, which is more by 34.8 percent compared to the previous year.

In January-May 2009, roughly 8.4 billion KWt/h power energy was produced in Azerbaijan, which is by 8.3 percent less compared to the same period of 2008.

b) oil refinery

The total volume of oil refining at Azerbaijani oil refineries was just 2.5 million ton in January-May 2009, compared to 3.06 million ton of the same period of 2008.

Oil products are manufactured at two oil refining plants in Baku with a total capacity of 20 million tons of oil per year. Both plants are owned by Socar, which manufactures roughly 6 million tons of oil per day from offshore and onshore fields.

Oil processing and oil products manufacturing in Azerbaijan in January-April 2009:

v) Realization

The State Statistics Committee reported that approximately 1.4 million tons of oil products were sold to the internal market of Azerbaijan in January-May 2009, compared to 2.1 million tons to the same period in 2008.

Some 369,000 tons of the total volume of oil products was petrol, which is an increase of 12.8 percent from the same period in 2008. The wholesale price for one ton of А-92 gasoline in the internal market (VAT and transportation costs inclusive) is 670 manats and А-95 - 736 manats. Azpetrol received 193,300 tons of gasoline and LUKoil - 62,000 tons.

In January-May 2009, 283,800 tons of diesel fuel was sold to the domestic market, which is by 24.6 percent less compared to January-May 2008. The wholesale cost of 1 ton of diesel fuel (VAT and transportation costs inclusive) is 485 manats. Azpetrol received 100,000 tons of diesel fuel and LUKoil - roughly 33,200 tons, the state committee reported. The Azerbaijani State Caspian Sea Shipping Company purchased 7,100 tons of diesel fuel.

Most of all, fuel oil was sold on the domestic market. In January-May 2009, 176,800 tons of fuel oil was sold to the domestic market, which is 74.4 percent less than the figure in 2008. The wholesale price of 1 ton of М-40 fuel oil in Azerbaijan is 100 manats (including delivery and VAT). Azerenerji JSC received 118,100 tons of fuel oil and the Heydar Aliyev Oil Refinery Plant 32,200 tons for further refinery.

A total of 128,700 tons of aviation kerosene was sold in this period, 39.9 percent less than in 2008. The price of aviation kerosene is 307 manats per ton (including delivery and VAT).

The sale of petroleum bitumen totaled 76,900 tons, an increase of 47,9 percent from 2008. The wholesale price of 1 ton of bitumen BN 60/90 (VAT and transportation costs inclusive) is 160 manats.

In January-May 2009, some 38,20 tons of butane-propane gas (LPG) was sold, 5.2 percent more compared to 2008.

The other more than 325,300 tons of oil products were also sold, less by  18.8 percent than in January-May 2008.

2. Chemical complexes

In January-May 2009, Azerbaijani state company Azerkimya produced 4.8 million cubic metre of nitrogen, which is by 12.7 percent less compared to the same period of 2008.

According to the Azerbaijan State Statistical Committee, production of polyethylene, isopropyl alcohol and paint products dropped in January-May 2009. No chlorine was produced.

Production of main types of chemical products for January-May 2009:

3. Power engineering

In Jan.-May, Azerenerji (Azerbaijan's largest energy producer) generated over 8.8 billion kilowatt hour of energy compared to 9.6 billion for the same period of 2008, the company said.

Thermoelectric power stations accounted for 8 billion kilowatt hour and hydro power stations 0.8 billion.

In May, Azerenerji generated about 1.4 billion kilowatt hour of energy 1.2 billion of which accounted for thermoelectric power stations and 0.2 billion for hydro power stations.