Major events in Caspian countries' oil and gas industry for last week (April 16-21)
BP announces new Shah Deniz Stage 2 project development phase
The consortium of Azerbaijani Shah Deniz gas condensate field development approved the decision to commence Front End Engineering and Design (FEED) on the estimated $25 billion Shah Deniz Stage 2 project, BP-Azerbaijan said. This was officially announced in Baku during the meeting between the President of Azerbaijan Ilham Aliyev and Bob Dudley, Group Chief Executive of BP, the Operator of Shah Deniz. The Shah Deniz 2 project is set to produce 16 billion cubic metres of gas per year. The entry into FEED represents the start of a key phase in the project during which engineering studies will be refined, further wells will be drilled, commercial agreements will be finalised and key construction contracts will commence, BP said. During the FEED phase of the project, the Shah Deniz consortium will finalise its selection of export routes across Turkey and into Europe.
India ready to cooperate with Azerbaijan on mining projects
The Indian oil and gas corporation Videsh Limited is ready to cooperate with Azerbaijani companies operating in projects in exploration and production, both in India, Azerbaijan and in other countries, the text of the protocol signed yesterday said following the second meeting of the Azerbaijani-Indian intergovernmental commission on trade, economic, scientific and technological cooperation says. According to the protocol, an agreement was reached on the possible analysis of a feasibility study of hydrocarbon supplies by Central Asia to India by the State Oil Company of Azerbaijan (SOCAR) and Videsh Limited.
Assets of State Oil Fund of Azerbaijan increase by 8.6 percent
Budget revenues of the State Oil Fund of Azerbaijan (SOFAZ) in the third quarter of 2012 reached 3.586.9 billion manat, while budget expenditures constituted 1.919.9 billion manat, SOFAZ said in its statement. Revenue worth 3.352.4 billion manat was received from fulfillment of oil and gas agreements, including 3.349.4 billion manat from the sale of profit oil and gas, 1.3 million manat - as transit payments. The assets of the SOFAZ as of April 1, 2012 grew by 8.6 percent compared to the beginning of 2012 ($29.800.0 billion) and stood at $32.359.4 billion.
Fitch Ratings: SOCAR's ratings reflect solid credit metrics
Fitch Ratings has affirmed State Oil Company of the Azerbaijan Republic's (SOCAR) Long-term foreign currency Issuer Default Rating (IDR) at 'BBB-' and Short-term foreign currency IDR at 'F3' and senior unsecured rating at 'BBB-'. The Outlook on the Long-term IDR is Stable.
International exhibition opens in Iran
The 17th International Exhibition of oil, gas, oil refining and petrochemical industries opened in Tehran. It is attended by companies from 44 countries - 940 Iranian and 315 foreign companies.
KazMunaiGas Exploration Production sells stake in subsidiary
KazMunaiGas Exploration Production (KMG EP subsidiary of National Oil and Gas Company KazMunaiGas) announced the closing of the transaction to sell a 51 per cent stake in the Kazakhstan Petrochemical Industries Inc. (KPI) of the United Chemical Company. KPI operates the construction of the first integrated petrochemical complex in the Atyrau region, to the west of the country. United Chemical Company has managed the KMG EP's stake in the project since 2009. The transaction value amounts to 4.86 billion tenge ($33.5 million).
Uzbekistan resumes gas supplies to Tajikistan
Uzbekistan has resumed gas supplies to Tajikistan, Uzbekneftegaz National Holding Company's website reported. "Based on the contract signed between the JSC Uztransgaz and JSC Tajiktransgas on April 11, 2012, natural gas supplies to Tajikistan were resumed from 12:00 a.m.on April 16," the report says. Details of the contract and volumes of supplied gas are not disclosed. Uzbekistan has stopped gas supplies to Tajikistan since April 1.
LUKOIL completes exploration drilling in Kandym group of fields in Uzbekistan
"Lukoil Uzbekistan Operating Company" (a wholly owned "subsidiary" of NC "LUKOIL", the operator of the projects in Uzbekistan), has completed exploration drilling in the Kandym group of fields. According to the operator, as a result of this work 3 exploration wells have been drilled. At present, work is underway to test drilled wells, and the exploration of core (samples of extracted rocks), followed by clarification of gas reserves on these fields. Czech Eriell Corp acted as a contractor on exploratory drilling.
RWE Dea begins seismic surveys in Turkmen coast of Caspian Sea
To obtain detailed information on hydrocarbon reservoirs in licence Block 23 off the coast of Turkmenistan, RWE Dea has begun carrying out a seismic survey. In the process, a 3D transition zone seismic survey will be carried out for the first time on the coast of Turkmenistan reaching from onshore to the shallow water region. The seismic survey comprises the acquisition of 3D data in an area of 400 square kilometers. A subsequent exploration well is scheduled to be drilled in 2013.