Major events in Caspian countries' oil and gas industry for week (Dec.24-28)

Analysis Materials 30 December 2012 16:12 (UTC +04:00)

Petkim reaches agreement on gas purchase with Socar Gaz

Petkim petrochemical complex has reached an agreement on gas purchase with SOCAR Gaz Ticareti AS, the Turkish Public Disclosure Platform (Kamuoyunu Aydınlatma Platformu KAP) said today.

Petkim will annually purchase 455 million cubic meters of gas. The agreement will enter into force from January 1, 2013.

Petkim will pay $ 380 per 1,000 square meters to SOCAR Gaz.
Earlier SOCAR Turkey Energy head, and board member of the Petkim petrochemical complex Kenan Yavuz said that SOCAR Turkey Energy will start importing 1.2 billion cubic meters of natural gas from Azerbaijan from Jan.1, 2013.

According to Yavuz, 400-500 million cubic meters of imported gas will be used for the production in the Petkim complex, while the rest part of the gas will be sold on Turkey's domestic market.

Winner of tender for SOCAR oil refinery construction determined

The winner of a tender for the construction of an oil refinery of the State oil Company of Azerbaijan (SOCAR) in Turkey has been determined, Head of SOCAR-Turkey Enerji A.Ş. Kenan Yavuz said in an interview with Bloomberg HT TV channel.

He said the winner of the tender is the consortium, which includes Korean, Italian, Spanish and Japanese companies. An agreement with these companies will be signed in January 2013.

Azerbaijan, Kazakhstan negotiate to create infrastructure to transport Kashagan oil

Kazakh State Oil and Gas Company "KazMunaiGas" and the State Oil Company of Azerbaijan (SOCAR) are in talks to create the infrastructure needed to transport oil from Kazakhstan's Kashagan field within the second phase of its development, Kazakh Ambassador to Azerbaijan Serik Primbetov said at a press conference at the Trend International News Agency on Tuesday.

As it was previously reported, oil from Kashagan may go through Azerbaijan within implementation of the second phase of development of the field, which is scheduled for 2018-2019.

Kazakhstan 'KazMunaiGas' can take loan to purchase ConocoPhilips's share in Kashagan project

Kazakhstan's National Oil and Gas Company "KazMunaiGas" does not exclude possible borrowing in foreign markets to purchase the share of ConocoPhilips in the Kashagan project, Managing Director of JSC Samruk-Kazyna National Welfare Fund, Malik Salimgereev said at a news conference on Tuesday.

He said ConocoPhilips made an official statement on sale of its 8.4 - percent share in the project in late November. According to the procedure, the shareholders of the consortium have two months to discuss possibility of fulfillment of its priority right to purchase that share.

He said distribution of ConocoPhilips's share among shareholders in equal parts is also possible.

Law on hydrocarbon resources to be amended in Turkmenistan

The Majlis (Turkmen parliament) has approved amendments to the law on Hydrocarbon Resources for the next meeting of the fourth convocation, an official Turkmen source said today.

The previous changes were made to the law in May 2012. According to the document, the State Agency for Hydrocarbon Resources under the Turkmen president was entitled to set up companies, to acquire shares and stocks of other companies, to open branches and representative offices and other units abroad.

LUKOIL makes investment decision on South-West Hissar project

LUKOIL has made a final investment decision on the project to equip the gas condensate fields at South-West Hissar in the south of Uzbekistan, LUKOIL Uzbekistan Operating Company, the operator of LUKOIL in Uzbekistan said today.

'The issue of passing the project into an implementation phase and the feasibility of making main investments has been resolved', the report said.

According to the company, while preparing a final investment decision, the approved part of the project was agreed. All necessary results were obtained from the Uzbek experts. The peer review of the project and an independent valuation performed by IPA Company were conducted.

Kazakhstan's Pavlodar Refinery reaches record levels of processing

As of Dec. 29, five million tons of oil were processed by the Pavlodar Petrochemical Plant, press-service of the plant reported.

"Five million tons of oil refining for the year - this is an indicator that was recorded at the plant 19 years ago," the director general said.

Production of gasoline, diesel fuel, liquefied gas, coke, bitumen, sulfur was increased in 2012. Production of high-octane gasoline has increased significantly. While overall production of gasoline for PPCP in 2012 was 1.3 million tons, the proportion of high-octane gasoline - 82.2 percent. 1.5 million tons of diesel fuel , 99,000 tons of kerosene, 810,000 tons of fuel oil, 244,000 tons of liquefied gas, 146.5 thousand tons of coke and 186.3 thousand tons of bitumen were produced in 2012.