1. FEC
а) Oil and gas production
According to the Azerbaijani State Statistics Committee, in Jan.-May, Azerbaijan produced 18.54 million tons of crude oil and condensate, which is 6.9 percent less than production in Jan.-May 2011. In 2011 the country produced 45.37 million tons of oil compared to 50.83 million tons in 2010.
The bulk of oil production in Jan.-May accounted for the block of "Azeri-Chirag-Guneshli" oil and gas fields and "Shah Deniz" gas-condensate field, which are developed jointly with foreign partners.
Gas production in Jan.-May in Azerbaijan was about 7.4 billion cubic meters, which is 8.5 percent more than in the same period of 2011.
About 26 billion cubic meters of gas were produced in the country in 2011 compared to 26.23 billion cubic meters in 2010.
It is projected that Azerbaijan plans to produce about 45 million tons of oil (900,000 barrels per day) in 2012, head of SOCAR investment department Vagif Aliyev said. Aliyev added that the volume of gas production this year is projected at 27-28 billion cubic meters.
In May, SOCAR and Petrovyetnam Vietnam signed an agreement on the basic commercial principles and provisions of the contract for the restoration, exploration, extraction and production sharing of the onshore block in Azerbaijan. The onshore block includes "Muradkhanli", "Jafarli" and "Zardab" oil fields.
The work on the sidetrack drilling of the first exploration well on the Absheron field in the Azerbaijani sector of Caspian Sea was launched in May. It is planned that the sidetrack will be drilled to 1,500 meters. The work on the well will be fully completed by autumn. The State Oil Company of Azerbaijan (SOCAR) first vice-president on the geology, geophysics and exploration Khoshbakht Yusifzade said earlier that sidetracking will be made at a depth of 4,800 meters. Potential reserves are estimated at 350 billion cubic meters of gas and 45 million tons of condensate.
Appraisal well SDX-07a has been temporarily closed down in the gas-condensate field Shah Deniz in May. The operator of the field development project is British BP. The depth of the well is 4,940 meters. The main reason for temporary closing down the well is the certification passed by "Istiglal" floating drilling rig. Drilling operations were conducted from there. After the certification process is over by October this year, drilling operations in appraisal well will be resumed," the source said. The design depth of the well is 6,300-6,400 meters.
The field work completed within the three-dimensional geophysical studies in the field "Umid" and perspective structure "Babak" in the Azerbaijani sector of Caspian Sea in May. "The work on the contract areas has been completed and the obtained data are good," the source said.
SOCAR-AQŞ has transferred a new well after drilling on the Gunashli-13 platform to the May 28 Oil and Gas Management Company.
According to the report, the depth of the well amounted to 2950 meters after the drilling. According to the data, daily production rate amounted to 94 tons of oil.
Currently technical preparatory work to the beginning of two wells drilling is being implemented.
SOCAR began drilling the first exploratory well in the prospective offshore structure "Goshadash" in late May. As a result of drilling, the well depth will be 3,500 meters. According to the plan, drilling will be carried out during eight months.
b) Refinery
In Jan.-May, Azerbaijan produced 496,100 tons of petrol, which is 1.7 percent more than in 2011, the state statistics committee said.
Azerbaijan produced 1.9 million tons of main kinds of oil products in Jan.-May.
The table reflecting production of oil products in Azerbaijan:
|
Oil products |
Jan.-May 2012 |
Jan.-May 2011 (%) |
|
petrol |
496,1 |
101,7 |
|
naphtha |
83,4 |
78,6 |
|
Kerosene |
261,5 |
104,8 |
|
Diesel fuel |
911,8 |
90,2 |
|
Lubricants |
30,2 |
86 |
|
Oil bitumen |
110,8 |
124,6 |
SOCAR will complete choosing licensees within the construction of a new complex for oil and gas processing and production of petrochemical products in the next 6-8 months, SOCAR vice president for strategic development Tofig Gahramanov said at a meeting with members of the Caspian-European Integration Business Club (CEIBC). "We have recently discussed optimizing and preparing feasibility studies with Foster wheeler, EOP, Technip Italy, Fluor companies. We are ready for this work. Together with Fluor company, we will choose licensees for next 6-8 months. About 27 licenses are required to implement the processes within the complex construction. Fluor will begin working in a month," Gahramanov said.
c) Sale
According to the State Statistics Committee, about 1.9 million tons of oil products were delivered to the Azerbaijani domestic market in Jan.-May or 13.5 percent (1.65 million tons) more than in Jan.-May 2011.
About 471,300 million tons of the total volume of oil products fell to petrol. Most petrol was sold on the domestic market.
Petrol was sold by 8.1 percent more during this period than in Jan.-May 2011. The wholesale cost of one ton of A-92 petrol (including delivery and VAT) is 670 manat, A-95 petrol - 736 manat in the Azerbaijani domestic market.
About 471,200 tons of diesel fuel were sold in the domestic market in Jan.-May, or 12.3 percent more than in Jan.-May 2011. The wholesale cost of one ton of diesel fuel (including delivery and VAT) is 485 manat in the Azerbaijani domestic market.
About 152,000 tons of fuel oil were sold on the domestic market in Jan.-May, or 52.2 percent more than in Jan.-May 2011.
About 203,100 tons of aviation kerosene were sold or 2.5 percent less than in Jan.-May 2011. The wholesale cost of one ton of aviation kerosene (including delivery and VAT) is 307 manat in the Azerbaijani domestic market.
About 101,500 tons of oil bitumen were sold in the domestic market, or 39.8 percent more than in Jan.-May 2011. The wholesale cost of one ton of BN 60/90 bitumen (including delivery and VAT) is 160 manat in the Azerbaijani domestic market.
About 55,100 tons of liquefied gas (LPG) were sold on the domestic market in Jan.-May, or 8.3 percent less than in Jan.-May 2011.
2. Chemical complex
According to the Azerbaijani State Statistics Committee, SOCAR's Azerkimya production association (production of chemical products) produced 16,400 tons of propylene in Jan.-May, or 51.2 percent more than in 2011.
There was an increase virtually in all major types of chemical products produced by the production association in Jan.-May.
Production of basic chemical products:
|
Products |
Jan.-May 2012 |
Jan.-May 2011 (%) |
|
Sulfuric acid (thousands tons) |
0,9 |
11,8 |
|
Polyethylene (thousands tons) |
40,7 |
109,8 |
|
Propylene (thousands tons) |
16,4 |
151,2 |
|
Isopropyl alcohol (thousands tons) |
5,6 |
83,4 |
|
Paintwork material (tons) |
1212,8 |
130,1 |
|
Caustic soda ( liquid in tons ) |
85,9 |
2,6 |
About 14,600 tons of solid polyethylene pipes, tubes, hoses were produced in Jan.-May or 5.1 percent more than in the same period of 2011. About 259 tons of porous polyurethane plates and strips were produced or 254.8 times more than in Jan.-May 2011.
The production of chemical products increased by more than 3 times during the period of SOCAR's "Azerkimya" production association's activity in Azerbaijan, head of the office of the Ministry of Energy and Industry Rasim Mammadov said at the opening ceremony of the second Caspian International exhibition "Plastic and Rubber" Plastex Caspian 2012. "This has created a large raw materials base for the production of plastic and rubber products in Azerbaijan," he said. He said that nine enterprises producing these products with a turnover of 9 million manat operates in 1995. At present, the number of enterprises increased to 60 - with a turnover of 70 million manat. This is an eleven-fold increase.
3. Electricity
Azerbaijan produced 9.1 billion kilowatt-hours of electricity in Jan.-May or 9.6 percent more than in the same period of 2011.
More than 20 billion kilowatt / hours of electricity were produced in the republic in 2011, or 8.4 percent more than in 2010.