Major events in Caspian countries' oil and gas industry for week (Dec.17-21)

Analysis Materials 25 December 2012 11:16 (UTC +04:00)

Azerbaijani President receives BP director

President of Azerbaijan Ilham Aliyev received Robert Dudley, BP Chief Executive Officer.

The sides have expressed satisfaction with the development of cooperation between Azerbaijan and BP, and also stressed the achieved effective results on the fields, developed jointly in Azerbaijan, as well as on the "Azeri-Chirag-Guneshli", "Shah Deniz" fields. They also discussed the issues related to the current situation and prospects of cooperation.

Robert Dudley also held talks with SOCAR head Rovnag Abdullayev.During the meeting, Abdullayev approved the subcommittee's activities towards the development of the "Azeri-Chirag-Guneshli" oil and gas fields that were established by a decision of the Steering Committee for the development of the "Azeri-Chirag-Guneshli". They were intended to initiate action and prepare short-and long-term plans for field development.

EU, Azerbaijan confirm commitment to negotiations with Turkmenistan on Trans-Caspian Pipeline

The EU-Azerbaijan cooperation in the energy sector was discussed in Brussels. During the thirteenth meeting of the Cooperation Council between the EU and Azerbaijan the sides confirmed their commitment to the negotiations with Turkmenistan on the construction of the Trans-Caspian Pipeline.

SOCAR continues work on the development of large gas and condensate fields in the Caspian Sea

The State Oil Company of Azerbaijan (SOCAR) is considering the installation of a second platform in the Umid field in the Azerbaijani sector of the Caspian Sea, the company source stated.

According to the source, the installation of a new platform is being considered, as it is required for full scale field development.

The source stated that at the present time, work is underway on the drilling of a third well in the field. Previously, two exploration wells were being drilled there, one of which is currently in operation; the extracted gas and condensate are sent to shore via underwater infrastructure.At present, well depth is 600 meters, the source said.

Canargo Limited plans to start geological prospecting and drilling work in Georgia

Investor of the Oil and Gas Corporation of Georgia, Canargo Limited intends to start geological prospecting and drilling work in Georgia from 2013, the Corporation said. According to the report, based on updated management and increased financial capacity, a work programme for 2013-2014 has already been developed. The management plans to specify the potential of oil and gas content on licensed blocks, as well as increasing production.Canargo Limited attracted Czech oil company MND for the business development. It is an investor in three production sharing agreements and owns four licensed areas.The Georgian territory is divided into licensed areas (blocks), in which investment companies are engaged in the exploration and production of oil. They have contracts with the state on production sharing. The Oil and Gas Corporation of Georgia which is the national oil company, provides partnership services to companies in planning operations, holds monitoring and controls their activity.At present, six investor companies including Canargo Limited are engaged in oil exploration and production in Georgia.

Iran, Turkmenistan sign agreement on gas-for-equipment barter deal

Iran and Turkmenistan signed a gas-for-equipment barter deal, Fars reported citing Iranian diplomatic sources. Iran is in debt for about $1 billion to Turkmenistan for gas imports, Mehr reported. Due to international restrictions, Iran has difficulties with transferring funds to Turkmenistan as payment for the gas imports.

Petronas Charigali constructs gas terminal in Turkmenistan

Malaysian company Petronas Charigali once acted as an investor of gas at the industrial complex in Kiyanly, the Neutral Turkmenistan newspaper reported. The complex ensures the cleaning and drying of natural gas extracted from the Magtymguly field. The current capacity of the plant is five billion cubic meters of gas per year. The site includes a plant preparing and processing gas and a ground gas terminal which receives natural gas from the fields in the Turkmen shelf of the Caspian Sea.

Swiss Ostchem Gas Trading examines Turkmen gas supplies to Ukraine

Ostchem Gas Trading AG, registered in Switzerland, began negotiating on transit with suppliers, including those from Turkmenistan, as well as Russian Gazprom to provide Ukraine with natural gas, an article of "Kommersant-Ukraine ("Ъ"), which refers to its sources.

The company was registered by businessman Dmitry Firtash. The article says that a source close to this businessman, said that in 2013 Ostchem Gas Trading intends to import 8.124 billion cubic meters of gas, of which two billion cubic meters will be sold to industrial customers that are not included in the group. Ostchem combines four Ukrainian nitrogen fertilizer producers: Nitrogen, Stirol concern, Severodonetsk nitrogen and Rovnoazot and has been importing gas to Ukraine since 2011. At the same time, the cost of gas, to be supplied by Ostchem Gas, is unknown.