Oil and gas (january-november 2009)

1. FEC

а) Oil and gas production 

Total oil and gas production in Azerbaijan

In January to November 2009, Azerbaijan produced about 46.4 million tons of oil and condensate, which is higher by 13.5 percent compared to the same period of 2008.

During the report period, the main oil and gas production fell to the Azerbaijan International Operating Company (AIOC), which produced 38.6 million tons of crude oil and gas condensate from the Azeri-Chirag-Guneshli (ACG) offshore fields. This index is more by 17 compared to the same period of 2008.

In January to November Azerbaijan's gas production amounted to about 21.4 billion cubic meters, which is higher by 2.1 percent compared to 2008. About 9.1 billion cubic meters of gas fell to the ACG field (associated gas) and Shah Deniz. This index is higher by 12 percent compared to the same period of 2008.

Oil and gas production of SOCAR (State Oil Company of Azerbaijan):

In January-November 2009, SOCAR Oil and Gas Production Union (OGPU) produced about 50 million barrels of oil (about 6.7 million tons) from offshore and onshore fields.

In January-November, SOCAR received about 6.7 billion cubic meters of gas. During the report period, the OGPU produced about 6.2 billion cubic meters of gas.

In January-November 2009, the AIOC produced about 3.66 billion cubic meters of associated gas from the ACG fields.

SOCAR processes part of the produced oil d at the company's ORPs.

Oil products are produced at two Baku refineries with capacity of 20 million tons of oil per year. Two refineries enter SOCAR annually processing 6 million tons of oil extracted onshore and offshore owing to own funds.

Total volume of oil processed on SOCAR's oil refineries hit 5.5 million tons in January-November 2009 compared to 6.7 million tons in the similar period of 2008, SOCAR said.

Aggregate table reflecting oil processing and oil products production in January-November 0f 2009:

v) realization

The State Statistics Committee reported that approximately 3.4 million tons of oil products were sold to the internal market of Azerbaijan in January-November 2009, compared to over 4.4 million tons in January-November 2008.

Some 904,500 tons of the total volume of oil products was petrol, which is an increase of 7.1 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. According to the State Statistics Committee, Azpetrol received over 471,200 tons of gasoline and LUKoil - around 144,000 tons.

In January-November 2009, 712,000 tons of diesel fuel was sold to the domestic market, which is by 23.5 percent less compared to the same period in 2008. The wholesale cost of 1 ton of diesel fuel (VAT and transportation costs inclusive) is 485 manats. Azpetrol received roughly 224,000 tons of diesel fuel and LUKoil - roughly 81,200 tons, the state statistics committee reported. The Azerbaijani State Caspian Sea Shipping Company purchased 17,800 tons of diesel fuel.

In January-November of 2009, 267,700 tons of fuel oil was sold to the domestic market, which is 69.7 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). According to the state statistics committee, Azerenerji JSC received over 118,100 tons of fuel oil and the Heydar Aliyev Oil Refinery Plant - over 34,800 tons for further refinery.

A total of 348,600 tons of aviation kerosene was sold in this period, 28.8 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 210,300 tons, an increase of 22.8 times from 2008. The wholesale price of 1 ton of bitumen BN 60/90 (VAT and transportation costs inclusive) is 160 manats.

In January-November, some 79,200 tons of LPG was sold to the interior market, which is by 8.7 percent less than the figure of 2008.

The other more than 897,800 tons of oil products were also sold, less by 4.3  percent than in January-November 2008.

SOCAR's Marketing and Economic Operations Management deals with export of oil products. In January-November, the refineries exported over 1.85 million tons of petroleum products compared to more than 2.3 million tons over the same period in 2008.

2. Chemical complexes

In Jan.-Nov. Azerkimya state-owned company (production of chemical products) produced 11.9 million cubic meters of nitrogen which is 21 percent less than the figure of the same period of 2008, Azerbaijan State Statistics Committee said.

The production of polyethylene, isopropyl alcohol and paintwork materials shrank decreased in Jan.-Nov. Chlorine oxide was not produced during in this period.

Production of major types of chemical products in Jan.-Nov. 2009 is as follows:

3. Power engineering

In January-November, Azerenerji (Azerbaijan's largest energy producer) generated roughly 16.8 billion kilowatt hour of energy.

Thermoelectric power stations accounted for 14.7 billion kilowatt hour and hydro power stations 2.1 billion.

In November, Azerenerji generated about 1.5 billion kilowatt hour of energy. Some 1.2 billion of which accounted for thermoelectric power stations and 0.3 billion for hydro power stations.