Review of oil and gas operations in Azerbaijan (January-June 2012)

1. FEC

а) Oil and gas production

According to the Azerbaijani State Statistics Committee, in the first half of the year, Azerbaijan produced 22.16 million tons of crude oil and condensate, which is 6.8 percent less than production in the first half of 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.-June 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.-June in Azerbaijan was about 8.84 billion cubic meters, which is 8.2 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.

Projected gas reserves in Azerbaijan are estimated at 10 billion tons of oil equivalent, first vice-president of SOCAR Khoshbakht Yusifzade said in Baku during the international conference "The potential for hydrocarbons at great depths: the future of energy resources - a reality, and Forecast." He noted that Projected gas reserves of Azerbaijan is estimated at six trillion cubic meters and projected oil reserves - four billion tons. In turn, the country's proven gas reserves are estimated at 2.55 trillion cubic meters, gas reserves - two billion tons.

As part of the construction of a platform and other infrastructure for the Chirag oil project (an increase in oil production on block of the Azeri-Chirag-Guneshli Azerbaijani fields), estimated at $ 4 billion, about 70 percent of the work has been completed, BP (operator of the project). The total cost of this project is estimated at $ 6 billion, of which $ 4 billion falls to construction work and $ 2 billion - for drilling.

The Geophysics and Geology Department under SOCAR conducted sonar work to the volume of 782.6 kilometres of the drilling of the first exploratory well in the prospective Goshadash structure, as well as in the area of two platforms and a compressor station on the field Oil Rocks. Operations were conducted on the Hovsan-Deniz and Zig sites.

State Oil Company of Azerbaijan (SOCAR) has mastered a second well on the field Umid in the Azerbaijani sector of Caspian Sea. Daily production rate of the well is 1.2 million cubic meters of gas and 150 tons of condensate.

Operations were carried out to process data obtained during the three-dimensional geophysical studies on the prospective structure of Babak in the Azerbaijani sector of the Caspian Sea on June.

The structure at Babek is located not far from the Umid field. SOCAR has repeatedly stated that it was going to carry out work on the structure independently. Estimated reserves of the Babak structure stand at 400 billion cubic meters of gas and 80 million tons of condensate.

SOCAR has commissioned two oil wells and one gas well on the offshore field "Oil Rocks" in the Azerbaijani sector of the Caspian Sea. According to the report, the gas well with a daily output of 100,000 cubic meters was commissioned on the offshore platform "Oil Rocks-2521". An oil well with daily output of 15 tons was put into operation from this platform. The second oil well with daily output of 14 tons was put into operation from the platform "Oil Rocks-2415".

b) Refinery

In Jan.-June, Azerbaijan produced 603,000 tons of petrol, which is 3.2 percent more than in 2011, the state statistics committee said.

Azerbaijan produced 1.9 million tons of main kinds of oil products in Jan.-June.

The table reflecting production of oil products in Azerbaijan:

Oil products

Jan.-June 2012

Jan.-June 2011 (%)










Diesel fuel

1 124,4





Oil bitumen



The State Oil Company of Azerbaijan (SOCAR) is planning to refine 6.3 million tons of oil in 2012, which is practically similarly to the figure of last year, a senior representative of SOCAR said. The volume of the oil will amount to 6 million ton after the refining, he said. With regard to the depth of processing, the representative of SOCAR said that it should reach 93 percent according to the forecast, while this figure stands at 92.6 percent at present.

c) Sale

According to the State Statistics Committee, about 2.3 million tons of oil products were delivered to the Azerbaijani domestic market in Jan.-June or 13.2 percent (2.02 million tons) more than in Jan.-June 2011.

About 585,2 thousand tons of the total volume of oil products fell to petrol. Most petrol was sold on the domestic market.

Petrol was sold by 9.3 percent more during this period than in Jan.-June 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 585,5 tons of diesel fuel were sold in the domestic market in Jan.-May, or 15.7 percent more than in Jan.-June 2011. The wholesale cost of one ton of diesel fuel (including delivery and VAT) is 485 manat in the Azerbaijani domestic market.

About 181,6 thousand tons of fuel oil were sold on the domestic market in Jan.-June, or 52.5 percent more than in Jan.-June 2011.

About 242,6 thousand tons of aviation kerosene were sold or 4.6 percent less than in Jan.-June 2011. The wholesale cost of one ton of aviation kerosene (including delivery and VAT) is 307 manat in the Azerbaijani domestic market.

About 125,1 thousand tons of oil bitumen were sold in the domestic market, or 32.9 percent more than in Jan.-June 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 65,5 thousand tons of liquefied gas (LPG) were sold on the domestic market in Jan.-June, or 8.3 percent less than in Jan.-June 2011.

2. Chemical complex

According to the Azerbaijani State Statistics Committee, SOCAR's Azerkimya production association (production of chemical products) produced 46,6 thousand tons of propylene in Jan.-June, or 4.7 percent more than in January-June 2011.

There was an increase virtually in all major types of chemical products produced by the production association in Jan.-June.

Production of basic chemical products:


Jan.-June 2012

Jan.-June 2011 (%)

Sulfuric acid (thousands tons)



Polyethylene (thousands tons)



Propylene (thousands tons)



Isopropyl alcohol (thousands tons)



Paintwork material (tons)



Caustic soda ( liquid in tons )



About 15,66 thousand tons of solid polyethylene pipes, tubes, hoses were produced in Jan.- June or 4.7 percent more than in the same period of 2011. About 281 tons of porous polyurethane plates and strips were produced or 3.3 times more than in Jan.-June 2011.

State Oil Company of Azerbaijan (SOCAR) has commissioned a complex for transshipment of propylene, located in Kulevi oil terminal of SOCAR. The project of the new complex was prepared by the institute Neftgazelmitedgigatlayihe. The facility includes compressors, transformers, nitric station and pier to supply polypropylene.

Production at the terminal will be loaded directly from rail tank cars to gas tankers.

3. Electricity

Azerbaijan produced 10.63 billion kilowatt-hours of electricity in Jan.-June or 10.5 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.

In the first half-year Azerbaijan Thermal Power Plant (TPP) generated 1.5 billion kilowatt-hours of electricity, Azerenergy (electricity generation and distribution in Azerbaijan) said. According to the report, in June, the power plant generated 521.7 million kilowatt hours of electricity. Azerbaijan TPP is the most powerful energy company in the South Caucasus region. The power plant consists of eight units with capacity of 300 megawatts each.

EU supports JCPOA commitments
EU supports JCPOA commitments
Iran launches telecommunication projects in Isfahan Province
Iran launches telecommunication projects in Isfahan Province
Iran's export to Spain declines
Iran's export to Spain declines
Loading Bars
Armenia has always supported terrorism - MP
EU supports JCPOA commitments
Azerbaijan focused on rehabilitation, reconstruction of liberated lands - MP
Assistant to Azerbaijan's president talks country's success in int'l information field
Baku Stock Exchange to auction off Azerbaijani Central Bank's short-term notes
Azerbaijan records growth of GDP in non-oil sector over Jan. 2021
Azerbaijan discloses volume of fruits and vegetables exported since early 2021
Azerbaijan would like to bring new ideas, proposals to region with help of OSCE - MP
Uzbekistan, Tajikistan talk opening ground checkpoints
All Armenian prisoners of war have been returned to Armenia - Azerbaijani MP
President Aliyev makes phone call to President Erdogan
Number of electronic registrations of businesses in Azerbaijan growing
TikTok is more affordable with Azercell!
Etsy not thinking of accepting bitcoin right now
Kazakhstan, Azerbaijan reach agreement on drilling wells with Satti jack-up rig
Only close cooperation can help demilitarize South Caucasus region - Azerbaijani MP
Azerbaijan Caspian Shipping CJSC receives int'l certificate in use of specialized software
FAO outlines strategy for healthy and productive livestock in Europe, Central Asia
Azerbaijan's January 2021 revenues from exports to US increase over fourfold
Registration of new enterprises down in Georgia
We have created new realities, Armenia and other countries must reckon with it - President Aliyev
Azerbaijan's AzerGold, BUZ Consulting ink contract to acquire Microsoft license
Precious metal prices down in Azerbaijan
Azerbaijan's State Employment Agency opens tender on e-platform development
Azerbaijan holds minute of silence to honor Khojaly genocide victims
Turkmenistan's Turkmenhimiya extends tender for turnkey construction of plants
Putin discusses current situation in Karabakh with Russian Security Council members
Azerbaijan records decline in total assets of local banks for Jan.2021
CNPC in Turkmenistan opens tender for purchase of tubing, spare parts
TPP in Uzbekistan announces tender for construction of combined cycle unit
Iran launches telecommunication projects in Isfahan Province
Azerbaijani witnesses to Khojaly genocide recount tragic events - Trend TV (VIDEO)
Turkmenistan conducts exploration, drilling operations at fields in Caspian region
Portugal's 'Original Features' shoots film about Khojaly genocide (VIDEO)
China will extend tariff exemptions for 65 U.S. products
Azerbaijan reports 180 more COVID-19 recoveries
Russian state official stresses need to reveal out causes and culprits of Khojaly tragedy
Uzbekistan to increase number of facilities recording water based on 'smart water’ technology
Uzbekistan’s 2020 volume of foreign direct investments down
Nothing must divert involved sides from main task in Nagorno-Karabakh region - Russian MFA
Kazakhstan reports increase in agriculture yield year-on-year
Iran's export to Spain declines
EU overseeing several projects to reinforce renewable energy use in Georgia
Azerbaijani population honoring memory of victims of Khojaly genocide (PHOTO)
Despite events in Armenia, it's necessary to continue implementation of agreements on Nagorno-Karabakh - Russian official
Azerbaijan jointly with Turkey to improve gaming industry - Game Tech
Pfizer COVID-19 vaccine reduces transmission after one dose
India's April-Jan fiscal deficit hits 66.8% of full-year target
Azerbaijan discloses amount of compensations paid to depositors of closed banks
Turkmenistan, Russia considering co-op in construction, electrification of railways
EBRD reveals info on investments in Azerbaijani projects
Turkey to ask Russia for discount on natural gas imports
European Council President Charles Michel to visit Georgia
Spain lowers import of Azerbaijani crude oil
WB, BSEC and Georgia start consultations on 'blueing the Black Sea'
Azerbaijani ombudsman makes statement on 29th anniversary of Khojaly genocide (VIDEO)
There will be good opportunity for cooperation between our relevant agencies and international companies - President Aliyev
Azerbaijan issues data on 2020 oil export to Greece
France raises imports of Turkish made cars
Turkey records increase in car exports to Georgia
Turkey discloses foreign trade turnover in Jan. 2021
We are preparing master plan for reconstruction of each city - President of Azerbaijan
Process of modernization of Azerbaijani cities continues - President Aliyev
Armenia ruined almost all religious monuments in Azerbaijani de-occupied lands - State Committee
Turkish president reveres memory of Azerbaijani brothers and sisters ruthlessly murdered in Khojaly
Memory of Khojaly genocide to live forever, says Azerbaijan's ombudsperson
Azerbaijan sees decline in crude oil exports to India
Azerbaijan nearly doubles oil supplies to Ukraine
Turkey discloses number of ships received at Antalya port in Jan.2021
Turkmen Airlines to receive new Boeing 777-200LR aircraft
Georgian Oil and Gas Corporation reveals amount of oil extracted in country
Turkmenistan extends suspension of flights
We were preparing for war all these years, we never concealed that - President of Azerbaijan
Pakistani Airlines requests permission to operate flights to Uzbekistan
According to our information, about 6,000-7,000 invaders were killed - President of Azerbaijan
Armenia has never been in such miserable state - President of Azerbaijan
State of Azerbaijan and I as President will always be with members of martyrs` families and war disabled - President Aliyev
Starting from July 17 until last day of war, several planes brought free weapons to Armenia every day - President Aliyev
Blood of victims of Khojaly was also avenged in second Karabakh war - President Aliyev
Current, former leaders of Armenia to be blamed for country’s current tough situation - Azerbaijani President
President warns about 'revanchism sentiments' regarding Azerbaijan's lands
Did Armenia buy those Iskander missiles for money? It got them for free - President Aliyev
Bangladesh PM’s younger sister gets first shot of Covid-19 vaccine
Thai-Sikh girl wins Bangkok award, dreams of Bollywood
We have shown that people of Azerbaijan are victorious - President Aliyev
Relatives of those in Armenia killed in war didn't even receive a hut, let alone a house - President Aliyev
Families of our children killed in Karabakh wars will be given apartments - President Aliyev
Eurasia Drilling Company reduces well drilling y-o-y
There was not single deserter in Azerbaijani army - President Aliyev
Surrender of Shusha, Lachin and Kalbajar during Musavat government was great act of betrayal - president
Uzbekinvest eyes expanding volume of insurance, reinsurance services
Baku Higher Oil School honors memory of victims of Khojaly genocide (PHOTO)
SOCAR’s Kulevi terminal details maintenance strategy
President Ilham Aliyev makes Facebook post on Khojaly genocide (PHOTO)
CBI governor expects Expediency Council to approve Palermo bill
Nagorno-Karabakh conflict ended, Azerbaijan resolved this issue - President Aliyev
Perpetrators of Khojaly genocide must be punished - Turkish ambassador
Prices for Azerbaijani oil continue to rise
Azerbaijani currency rates for Feb. 26
New Ambassador of Turkmenistan accredited in Kazakhstan
All news