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Major events in Caspian countries' oil and gas industry for last week (July 23-28)

Analysis Materials 30 July 2012 14:49 (UTC +04:00)
State Oil Fund of Azerbaijan considers investing in TANAP
Major events in Caspian countries' oil and gas industry for last week (July 23-28)

State Oil Fund of Azerbaijan considers investing in TANAP

The State Oil Fund of Azerbaijan (SOFAZ) considers possibility of becoming one of the investors of construction of Trans-Anatolian gas pipeline (TANAP), SOFAZ head Shahmar Movsumov said at a press conference on the results of activity in the first half-year. He said TANAP is an important strategic project of regional character equally with the Baku-Tbilisi-Ceyhan oil pipeline. "Azerbaijani government is ready to make every effort to facilitate implementation of this project, and in particular the possibility of investing funds from the State Oil Fund of Azerbaijan in this project," Movsumov said.

SOFAZ announces plans for investment in shares

Total assets of the State Oil Fund of Azerbaijan (SOFAZ) are projected at $34-35 billion at the end 2012, head of SOFAZ Shahmar Movsumov said at a press conference. He noted that, according to the investment policy of the State Oil Fund for 2012, up to five percent of its funds can be invested in stocks. Such companies as UBS Global Asset Management and State Street Global Advisors have been chosen as managers of investment in shares
Investing in shares is scheduled for September. The volume of investments in shares of the State Oil Fund is projected at $600 million. It is planned to invest $400-500 million in short-term deposits in Russian rubles. "Deposits will be opened in major banks with high ratings," Movsumov said.

Major oil and gas companies reject Iran's gas proposal

Iranian National Gas Company has started negotiations with Italian Agip, Spanish Repsol and Russian LukOil's European branch to export its gas to EU, but all talks have failed, EU economic advisor Mehrdad Emadi told Trend. "Iran's representatives meet with LukOil officials three times 18 month ago and during last meeting Iran proposed to supply its gas to this company on cost price, asking LukOil a 30 percent benefit from gas sale," Emadi said.
EU advisor underlined that Iran's proposal means about a 40 percent discount at gas price for Lukoil, but this company rejected Iran's proposal because of fearing from being affected by the U.S. sanctions. Emadi said that Iran's attempts to sign an agreement to deliver its gas through two ports in Malta and Greece to the European Union faced deadlock as well.

Turkmenistan develops new gas condensate fields

Turkmenistan has started commercial development of the Babarap new gas and condensate field in the northern part of the Lebap region of the country, the state concern Turkmengaz said.

The first two starting wells have been recently commissioned. More than 300,000 cubic meters of natural gas are delivered into the gas artery daily from a depth of more than 3000 and about 40 tons of hydrocarbons condensate line.

The Babarap field is the second gas producing area in Zaunguz Kara Kum. The necessary gas production infrastructure is currently being constructed at the field.

Commercial production of energy resources started this year. Previously, the new field of Kerven was commissioned. Up to 700,000 cubic meters of gas, as well as large volumes of condensate are being extracted daily. There is a large percentage of gas condensate, the most valuable material for the production of light petroleum hydrocarbons, in the gas extracted from Zaunguz, especially in the new areas of Kerven and Babarap.

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