Oil and gas (january-october 2010)

1. FEC

а) Oil and gas production

In January-October, SOCAR's oil and gas departments extracted about 45 million barrels (over 6.1 million tons) in offshore and onshore fields of the country compared to over 44.7 million barrels (about 6.09 million tons) in January- October 2009, SOCAR said.

About 10.83 million barrels fall to joint projects of SOCAR with foreign companies. Over 1.8 million barrels fall to operating companies. About 5.6 million barrels fall to "Azeri-Chirag-Guneshli", 948,150 barrels fall to gas condensate from Shah Deniz field.

In January-October SOCAR received about 6.37 billion cubic meters, compared to about 6.1 billion cubic meters during the same period of last year. SOCAR's oil and gas departments extracted about 5.9 billion cubic meters of gas. Joint ventures and operating companies which produce natural gas onshore delivered SOCAR 71.9 million cubic meters of gas in January-October.

Azerbaijan International Operating Company (AIOC) extracted over 2.8 billion cubic meters of associated gas in the field "Azeri-Chirag-Guneshli" in January-October for SOCAR compared to over 3.3 billion cubic meters during the same period of last year.

There are 59 oil and gas fields, of which 18 offshore, the rest onshore in Azerbaijan.

b) Refinery

About 5.23 million tons of oil products were produced in January-October in Azerbaijan compared to 5.03 million tons at the same period of 2009, SOCAR said.

In January-October, the largest volume of production fell to diesel fuel - over 2 million tons compared to over 1.8 million tons in January-October last year.

Azerbaijan has two oil refineries with total capacity of 20 million tons a year compared.

Oil production in Azerbaijan in January-October  (thousands tons):

b) Realization

The State Statistics Committee reported that approximately 3.2 million tons of oil products were sold to the internal market of Azerbaijan in January-October 2010, compared to 3.1 million tons in the same period of 2009.

About 868,400 tons of the total volume of oil products was petrol, which is an increase of 6.1 percent than in the same period of 2009. The wholesale price for one ton of А-92 gasoline in the internal market (VAT and transportation costs inclusive) is 670 manat and А-95 - 736 manat. According to the State Statistics Committee, Azpetrol received over 397,700 tons of gasoline, LUKOIL - about 134,600 tons, SOCAR Petroleum 173,600 tons.

In January-October, about 738,500 tons of diesel fuel was sold to the domestic market, which is by 14.3 percent more compared to the same period of 2009. The wholesale cost of 1 ton of diesel fuel (VAT and transportation costs inclusive) is 485 manat. Azpetrol received roughly 178,700 tons of diesel fuel, SOCAR Petroleum-114,500 and LUKoil - roughly 82,000 tons, the state statistics committee reported. The Azerbaijani State Caspian Sea Shipping Company received 19,000 tons of diesel fuel.

Azpetrol has 70 filling stations in Azerbaijan, of which 66 - petrol, 4 - gas stations. An oil tank farm with total capacity of 7,000 tons and car park, meeting international standards was commissioned in 1999 to improve fuel quality, ensure uninterrupted operation of filling stations and improve the quality of customer service. Currently, Azpetrol fleet consists of 110 fuel tankers with capacities ranging from 17 to 42 tons, which provide the company's filling stations with fuel. Azpetrol owns approximately 15 percent of the total number of filling stations in the country. The company's share in the relevant market sector is more than 50 percent.

About 216,000 tons of fuel oil was sold to the domestic market in Jan.-Oct., which is 16.8 percent less than the figure in the same period of 2009. The wholesale price of 1 ton of М-40 fuel oil in Azerbaijan is 100 manat (including delivery and VAT).

A total of 401,500 tons of aviation kerosene was sold in Jan.-Oct., 27.9 percent more than in the same period of 2009. The price of aviation kerosene is 307 manat per ton (including delivery and VAT).

The sale of petroleum bitumen totaled 189,200 tons in Jan.-Oct., or 3.9 percent less than the same period of 2009. The wholesale price of 1 ton of bitumen BN 60/90 (VAT and transportation costs inclusive) is 160 manat.

About 65,700 tons of liquefied gas were sold on the interior market in Jan.-Oct., which is 8.9 percent less than the same period last year.

More than 700,100 tons of other oil products were also sold, less by 15.5 percent than in the same period of 2009.

2. Chemical complex

SOCAR's Azerkimya PU (production of chemical products) produced 12.2 million cubic meters of nitrogen in January-October. It is 16 percent more than the same period of 2009, the Azerbaijani State Statistics Committee.

There was considerable growth for all the main types of chemical products produced by PU in January-October. Decrease was observed only in the production of sulfuric acid and propylene.

Production of basic chemical products during January-October:

Along with increased production of chemical raw materials, production of plastics and rubber also increased. Thus, about 4,100 tons of solid polyethylene pipes, tubes, hoses were produced in January-October. It is 2 times more compared to the same period of last year. About 191 tons of porous polyurethane plates and strips were produced in the republic. It is 42.9 percent less than the same period of last year. A significant growth is also observed in the production of polymer coatings. About 418.2 tons of this type of product was produced in January-October. It is 82.9 percent more than the same period of last year.

3. Power engineering

"Azerenergy" (production and distribution of electricity in Azerbaijan) generated about 15.2 billion kilowatt hours of electricity in January-October compared to the same period of 2009, "Azerenergy" (production and distribution of electricity in Azerbaijan) said.

In October, Azerenergy generated about 1.4 billion kilowatt hours of electricity compared to 1.3 billion kilowatt hours of electricity in October 2009.

Also in October power interchange was carried out with Russia, Iran, Turkey and Georgia.