Major events in Caspian countries' oil and gas industry for last week (jan. 9-14)

Analysis Materials 17 January 2012 11:08 (UTC +04:00)

Azerbaijan, Ukraine to create JV to transport LNG

Documents on creating a Ukrainian-Azerbaijani joint venture to supply LNG will be signed at the world economic forum in Davos on Jan.25-26. "We expect that a number of documents on supply of gas (to LNG-terminal which is under construction in Ukraine) and on creating an Azerbaijani-Ukrainian company on gas supply will be signed in Davos. Appropriate documents are initialed. They will be officially implemented," Vladislav Kaskiv, the head of State Agency for Investment and National Projects, said. He said currently two documents are initialed: on supply of gas to LNG-terminal and on creating a Ukrainian-Azerbaijani company which will develop project of creating the object.

Kazakh president signs law on gas and gas supply

Kazakh President Nursultan Nazarbayev signed the Law on gas and gas supply.

"The law is aimed at providing energy and environmental security of the country, creating conditions for constant gas supply to the customers and increasing share of gas in the fuel and energy balance," the statement said.

Moreover, the law will create the conditions for effective use of associated gas for domestic needs and efficient and safe operation of gas supply systems.

SOCAR creates nanotechnology centre in Germany

The State Oil Company of Azerbaijan (SOCAR), the German Economic Development Agency of North Rhine-Westphalia NRW.İNWEST GmbH and a cluster of new nano-microtechnologies NanoMikro plus Werkstoffe.NRW signed a Memorandum of Understanding.
The document anticipates creating a subdivision of scientific and production centres for nanotechnologies of SOCAR in the North Rhine-Westphalia, as well as offering financing, technical and legal studies of joint projects, defining areas for production of nanotechnology systems and studying the sales market.

Azerbaijan completes geophysical survey on large offshore block

The Caspian Geophysical Company completed a three-dimensional geophysical study of the Shafag-Asiman prospective block in the Azerbaijani sector of the Caspian. The work was done from the Gilavar geophysical vessel.
Caspian Geophysical will hold data processing for BP. Interpretation of the data will be conducted independently by the customer.

Date of tender on AGRI project extended

SC AGRI LNG Project Company SRL (AGRI) extended the closing date of the consultant selection process for Azerbaijan - Georgia - Romania - Hungary Interconnector project.
According to the company's statement, the shareholders empower the Board of Directors to extend the closing date of the consultant selection process until 31 January 2012 from the original date of 19 January 2012. SC AGRI announced the tender for proposals related to the preparation of the feasibility study, the scope of which is to assess the technical, financial and economical viability of the energy cooperation project named Azerbaijan - Georgia - Romania - Hungary Interconnector.

SOCAR announces investment amount within gasification program in Georgia

The amount of new (potential) users will exceed 170,000 at the end of 2012 as part of the gasification of Georgia implemented by State Oil Company of Azerbaijan (SOCAR).
SOCAR Energy Georgia represents the interests of SOCAR in Georgia.
SOCAR Georgia Gas (a subsidiary company of SOCAR Energy Georgia) should gasify at least 150 000 new (potential) customers and invest at least $40 million in the gasification process in the country under a contract signed with the Government of Georgia. It appears, however, that the investment will exceed this amount.
About 30 towns and 100 villages are involved in the gasification program.

Uzbekneftegaz, PVEP to accelerate geological prospecting in Uzbekistan

Leaders of the Uzbekneftegaz National Holding Company received a delegation of the Vietnamese PetroVietnam Exploration & Production (PVEP) led by the chairman of board of directors Phung Dinh Thuc where they exchanged views on joint projects being worked on in the country. It was noted that under the project of the Holding firm prospecting works at operator Kossor's investment block of Uzbekistan's Ustyurt province, the Kossor Operating Company did all the prospecting work, processed and interpreted received data as a result of which a number of potential structures were determined. Participants of negotiations agreed to accelerate further stages of work in order to start prospect drilling.
According to the document the Vietnamese company should invest $29.4 million in exploration work on the Kossor investment block for five years and spend no less than $13 million on the minimum exploration programme during the first three years.
According to the agreement if a foreign investor discovers oil and gas fields, both parties will conclude a production sharing agreement. PVER established the Kossor Operating Company to implement the project in Uzbekistan. The high availability of the block was determined as a result of field processing of previously received seismic data.