Major events in Caspian countries' oil and gas industry for week (Nov.26-30)

Analysis Materials 4 December 2012 12:33 (UTC +04:00)

SOCAR: BP carries out work to ensure stable production at Azeri-Chirag-Guneshli in 2013

BP Azerbaijan conducts all the necessary work to ensure stable production volume at the block of Azeri-Chirag-Gunashli (ACG) oil and gas fields in the Azerbaijani sector of the Caspian Sea in 2013, First Vice-President of the State Oil Company of Azerbaijan (SOCAR), Khoshbakht Yusifzade told journalists. He said in order to ensure stable production volume at the block it is necessary to maintain normal operation of existing wells and fulfill envisaged drilling program. For example this year BP had to complete drilling in eight new wells, however, it completed drilling in only two of them. "Accordingly, it is necessary to ensure drilling of new wells and continue exploitation of the existing ones to maintain stable oil production at ACG," Yusifzade said. At present, all the necessary work is underway to stabilize production volume at the block next year, he said.

Over 80% of work within Chirag oil project completed in Azerbaijan

Some 81.6 percent of construction work has been completed within realization of the Chirag oil project (COP - increase of oil production in Azeri-Chirag-Guneshli field), the recently published BP (operator of the ACG) report on the results of first nine months of 2012 stated. According to information, in particular necessary work is carried out in the ATA section (AMEC-Tekfen-Azfen) and in the the deep water plant named after Heydar Aliyev. Implementation of this work will continue until the late 2012. "Some 90 per cent of work within the construction of the upper platform modules has been completed in the ATA construction and installation section, their transportation to sea is scheduled for the second quarter of 2013," the report says. The Chirag oil project involves the construction of the new West Chirag platform which will be installed at a depth of 170 metres between the Chirag and Gunashli production platforms.The investments made to the Chirag oil project implementation will hit $6 billion. The contract on the Azeri-Chirag-Guneshli full field development was signed in 1994.

Minister: Iran to sell oil bonds in near future

Iranian Oil minister Rostam Qasemi has said that the National Iranian Oil Company will start selling oil bonds in the near future. According to national budget law, the Oil Ministry's subsidiaries are obliged to sell bonds totally up to a ceiling of $5 billion in the current Iranian calendar year which ends on March 20, 2013. On November 7, the Iranian Offshore Oil Company's managing director Mahmoud Zirakchianzadeh said the company will issue $500 million worth of bonds to finance oil projects in the current Iranian calendar year which ends on March 20, 2013. IOOC also plans to issue 7.5 trillion rials (about $610 million) in bonds by December 5, ISNA quoted him as saying.

Iran proposes OPEC-style petrochemical forum

Iran has hinted at a proposal to international bodies for the creation of a global forum for exporters of petrochemical products, Iran's deputy oil minister said. "The formation of the Petrochemical Exporting Countries Forum (PECF) will bring a new order to the market of petrochemical products and create coordination among exporters," the Mehr News Agency quoted Abdolhossein Bayat as saying. Bayat, who is also the managing director of the National Iranian Petrochemical Company (NIPC), added that Iran, Saudi Arabia, UAE, Russia, Qatar, and Turkey are potential members of PECF which will concentrate on financial and technological cooperation among members, as well as product pricing and policy making on production issues.

KazTransGas, Uzbekneftegaz agree to supply gas to southern Kazakhstan

KazTransGas (KTG) and Uzbekneftegaz have agreed to supply gas to the south of Kazakhstan, JSC KazTransGas said. 'JSC KazTransGas and NHC Uzbekneftegaz discussed the issues of bilateral cooperation during a meeting held in Tashkent. An agreement to supply natural gas to the amount of three billion cubic meters of gas to the southern regions of Kazakhstan is by using the Bukhara-Tashkent-Bishkek-Almaty gas pipeline', the statement said. The parties also agreed on additional supplies of natural gas through the Turkmenistan-China in a volume of 0.5 billion cubic meters.

Indian company researches investment opportunities in Turkmen fuel energy complex

Indian ONGC Videsh Ltd (OVL)company is looking to invest in Turkmenistan's exploration and production (E&P) industry and is interested in the large gas reserves of the country, the Indian edition of Business Standard stated. According to information, Turkmenistan's Acting Minister of Oil & Gas Industry and Mineral Resources Kakageldy Abdullaev invited Indian companies Gail and OVL to make investments in his country during his visit to Delhi last month. "We are very keen to invest in the E&P sector of Turkmenistan, particularly its gas reserves. We have had few meetings with key people from the country. Their government delegation is likely to be here later this year," the managing director of OVL D K Sarraf stated. "Turkmenistan prefers service contracts, but we are keen to have a production-sharing contract," Sarraf said.

President: Turkmen gas supplied to Iran on stable and long term basis

Turkmen President Gurbanguly Berdimuhamedow and Iranian Oil Minister Rostam Ghasemi have discussed issues of cooperation in the oil and gas industry, the Turkmen government said. At the same time, in an interview with local the Altyn Asyr channel, following the meeting with the Turkmen president, the Iranian minister noted that the possibility of increasing Turkmen gas supply to Iran was considered. He said the meeting was 'very effective'.

LUKOIL plans to increase gas production in Uzbekistan in 2012-2015

LUKOIL the Russian national company plans to increase gas production in Uzbekistan two-fold from 4.1 billion cubic meters in 2012 to 8.2 billion cubic meters by 2016, the company said. According to the company, gas production in Uzbekistan will hit 4.4 billion cubic meters in 2013 and in 2014, 5.2 billion cubic meters. According to the report, the company increased gas production by 73 per cent in its projects in Uzbekistan during the third quarter of 2012. According to the company, the expected growth in the EBITDA index as a result of increased extraction in Uzbek mining projects as of 2012 is planned to reach $800 million in 2013-2015.