Major events in Caspian countries' oil and gas industry for last week (Oct. 24-29)
Malaysia's Petronas announces tender in Uzbekistan
The Malaysian Petronas Carigali Baisun Operating Company, a wholly-owned subsidiary of Petronas Carigali Overseas, has announced a tender for the provision of comprehensive services for the appraisal drilling in 2011-2014 under the PSA to develop gas fields in Boysun investment bloc in the Surkhandarya region in southern Uzbekistan.
The report did not specify the parameters of the appraisal drilling program.
The principal directions of the further implementation of the PSA are conducting in-depth evaluation work to open up new and evaluate hydrocarbon reserves in the identified fields.
The bids are accepted until Nov. 21, and it will be summarized in late 2011.
Iranian company will conduct seismic survey for oil in Uzbekistan
Iranian Oil Exploration Operations Company (OEOC) has launched 2D seismic survey on two investment blocks in the Fergana oil and gas region in Uzbekistan.
According to the source, the Iranian company won a tender announced in late 2010 to conduct seismic surveys in the West Fergana and Chinabad investment blocks.
As a result, OEOC signed a contract with the Korea National Oil Corporation (KNOC) conducting the study in investment blocks in Fergana region, to conduct work on processing and interpretation of data on 2D seismic profiles in the amount of 1,200 kilometers by late 2012.
The contract cost is not announced.
Uzbekneftegaz, Indorama will establish JV
The Uzbek government has approved the implementation of a feasibility study on a gas-chemical complex construction project at the Mubarek gas processing plant in the Kashkadarya region, south of Uzbekistan, worth $2.5 billion.
According to the schedule, the study is planned to be completed by the end of this year with partnership documents being agreed in early 2012. The joint venture is planned to be established on a parity basis between the National Holding Company Uzbekneftegaz and Singapore's Indorama Group in the first quarter of 2012. The project will see the construction of a gas-chemical complex with the capacity of 500,000 tons of polyethylene per year taking four years to build.
Azerbaijan considers increasing fuel quality
The Y.Mammadaliyev Petrochemical Processes Institute of the Azerbaijani National Academy of Sciences (ANAS) presented new national standards for gasoline and relevant environmental standards of Euro-3, Euro 4 and Euro 5 emissions to state bodies and organizations.
The new standards were presented to the Health Ministry, Environment and Natural Resources Ministry, Ministry of Emergency Situations, as well as SOCAR, which is the sole petrol producer in the country. "These bodies must consider them and submit their conclusions," a source said.
Turkey lays foundation of SOCAR's new refinery
A solemn ceremony to lay the foundation of the new oil refinery was held in the Turkish city of Izmir on Oct.25.
The cost of the new oil refinery exceeds $5.5 billion. The oil refinery's capacity will hit 10 million tons per year. Oil products manufactured at the plant will be directed to cover the needs of Petkim, the domestic market of Turkey and the countries of the Mediterranean region.
Turkish Prime Minister Recep Tayyip Erdogan and Azerbaijani President Ilham Aliyev attended the foundation laying ceremony. A new refinery is designed to provide petrochemical complex Petkim with raw materials. SOCAR has equity participation there.
Azerbaijan, Turkey will build new gas pipeline to export Caspian gas
Baku and Ankara intend to build a new gas pipeline to Turkey to export most of 50 billion cubic meters of gas that Azerbaijan intends to produce by 2025, SOCAR president Rovnag Abdullayev said on Oct. 27.
Participants of this project intend to resolve all issues on this pipeline in 2012, and without delay, start building to make it ready by the end of 2017, when the second stage of development of Azerbaijani Shah Deniz gas condensate field is launched.
Azerbaijan, Turkey sign agreement on gas transit to Europe
On Oct. 25, Turkey and Azerbaijan signed a package of gas agreements, including the cost of Azerbaijani gas for Turkey from the Shah Deniz-2, gas supplies to Turkey from this field after 2017 and an agreement on Azerbaijani gas transit via Turkey. The transit agreement is required to implement Azerbaijani gas transportation projects to Europe within the Southern Gas Corridor.
PKN ORLEN, SOCAR sign agreement for crude oil deliveries
Polski Koncern Naftowy ORLEN S.A. signed an agreement with Socar Trading S.A. for crude oil deliveries to Unipetrol RPA.
The estimated net value of the agreement amounts to $67 million.
Exxon ready for cooperation with Turkmenistan
Turkmen President Gurbanguly Berdimuhamedov has received Exxon Vice President in Europe and the Caspian Sea Region Phil Mulhall.
The guest expressed Exxon's willingness to the long-term cooperation with Turkmenistan.
Turkmenistan implements the energy strategy aimed at a radical modernization of the sector by diversifying energy export routes.
President Berdimuhamedov confirmed Turkmenistan's readiness to establish long-term cooperation with the company.
Azerbaijan determines main directions of oil and gas sector development in medium term prospect
One of the key medium-term priorities of the Azerbaijani oil and gas sector's development is great energy independence and strengthening national security.
The document was submitted to the Azerbaijani parliament for consideration.
The project indicates even more widespread use of the energy sector opportunities to improve the overall industrial production, defining of the oil and gas activities of export nature, increasing the export potential of primary and secondary oil and gas resources, strengthening the country's transport independence in the export of oil and gas resources are among priorities.
Moreover, the operations will be made to expand the use of innovative technologies, particularly nanotechnology, in the oil and gas sector.