Major events in Caspian countries' oil and gas industry for last week (jan. 16-21)

Analysis Materials 23 January 2012 11:21 (UTC +04:00)

Kyrgyzstan, Azerbaijan agree on construction of oil refinery

An agreement in principle to start construction of an oil refinery in Kyrgyzstan with a capacity of 2 million tons per year was reached at a meeting of the Kyrgyz President Almazbek Atambayev and head of the State Oil Company of Azerbaijan (SOCAR) Rovnag Abdullayev. The oil refinery is expected to be commissioned in late 2013. The meeting between President Atambayev and Mr Abdullayev discussed supply of crude oil and oil products from Azerbaijan, as well as prospects for oil exploration and production in Kyrgyzstan. Mr Abdullayev said a group of specialists will be sent soon to examine construction of the oil refinery and start of the company's activity in Kyrgyzstan's energy sector.

SOCAR seeks to purchase Turkey's electricity distribution system

The State Oil Company of Azerbaijan Republic (SOCAR) submitted appropriate documentation to participate in a tender for the purchase of stake in Turkey's electricity distribution company Baskent Doğal Gaz. Besides SOCAR other foreign and local companies participate in a tender for purchase of 80 percent stake of Baskent Doğal Gaz, the company said. Earlier SOCAR's joint petrochemical company got a license for gross sale in Turkey's domestic market. The license was issued for 30 years by the group of regulating Turkey's energy market.

Uzbekistan takes measures to accelerate implementation of Kandym project

President of Uzbekistan Islam Karimov signed the order "On additional measures on complex development of Kandym group of fields". The order envisages additional conditions to accelerate implementation of PSA with LUKOIL on Kandym-Khauzak-Shady-Kungrad project. According to the order, project participants - LUKOIL and National Holding Company Uzbekneftegaz should develop Kuvachi and Alat fields of Kandym group and the northern part of Shady section on Dengizkul field by Dec.30, 2014. Feasibility study of the project on construction of gas processing plant and development of Kandym group of fields should be developed and presented to the Uzbek cabinet of minister until above mentioned date. The first queue of Kandym gas processing plant should be commissioned by Oct.1, 2016.

First start up gas facility at the structure in Uzbekistan is commissioned

Russian Oil Company Lukoil commissioned the first start up facility in the western section of Shady (Khauzak-Shady fishing of Bukhara region) in Uzbekistan. It was reported that five wells with a total daily output of over four million cubic meters of natural gas are commissioned.

LUKOIL increases its share in Aral agreement in Uzbekistan

LUKOIL management approved an additional 6.6 per cent-share in Production Sharing Agreement (PSA) in the Uzbek part of Aral sea purchased by LUKOIL Overseas (operator of international upstream projects of the company). LUKOIL management also approved purchase of 6.6 per cent in the authorized capital of Aral Sea Operating Company - operating company of the project. LUKOIL will increase its share due to Petronas's withdrawal from the project. PSA on Aral block was signed in 2006 and consists of two parts: exploration work (license on exploration work was issued for 5 years - Aral Sea Operating Company joint venture) and further development of discovered hydrocarbons reserves for 35 years.