Major events in Caspian countries' oil and gas industry for last week (July 22-26)

Analysis Materials 30 July 2013 15:14 (UTC +04:00)

SOCAR to build trestle in Azerbaijani sector of Caspian Sea

State Oil Company of Azerbaijan Republic (SOCAR) is building a new trestle No. 1954A on the "Oil Rocks" field in the Azerbaijani sector of the Caspian Sea, SOCAR said.

According to the report, the trestle that is designed for drilling of 10 new wells will be located at a water depth of 19 meters.

Georgia, EU discuss prospects for deepening cooperation in energy sector

Georgian Foreign Minister Maia Pandjikidze has met with European Commissioner for Energy Gunther Oettinger.
The sides discussed prospects for deepening cooperation between Georgia and the EU in the energy sector. European Commissioner emphasized the role of Georgia in the energy security of Europe.
The parties also discussed Georgia's accession to the organization "Energy Community".

The parties noted that the membership of this organization will be another step forward in the process of rapprochement of Georgia with the EU, which will help in the implementation of new technologies in the energy sector and attracting investments.

Gas flow obtained during exploration on Fedorovskiy block in Kazakhstan

Kazakh company KazMunaiGas Exploration Production (KMG EP) during a testing of a subsalt well drilled in March 2013 on Fedorov block (west of Kazakhstan, near the city of Uralsk) obtained a gas flow of 239,450 cubic meters per day and condensate of 247 cubic meters per day by the 11 millimeter socket, the company's report said.

"At present, JSC NIPINeftegas is preparing a report on reserves at the Fedorovskiy block regarding the results of the evaluation and exploration activities of 2010," the statement said.

Kazakhstan's oil refiners have to solve overstocking problem

Kazakh oil refiners have to solve the problem of their products' placement on storage facilities throughout the country, a representative of one of three Kazakh oil refineries said on condition of anonymity.

"At present, republic's refiners have to solve the problem of overstocking of their own products. In order not to stop production and not to reduce the amounts of processing, we send our products to the oil storage facilities throughout Kazakhstan, as our own petroleum storage depots are already filled 'by request'. It is clear that renting of other oil storages is not carried out for free, but at the expenses of the plants," the source said.

According to the oil refiner, the government still has not properly solved the problem of restriction of gasoline imports from neighbouring Russia. The question of the export of Kazakhstan-made oil remains unsolved.

According to experts the best solution for this situation is to open export for Kazakhstan's gasoline, in order to unload market and oil storages. Kazakhstan had such an experience of oil products export to Afghanistan in 2010.

Modernization of large gas processing plant in Uzbekistan completed

The National Holding Company (NHC) "Uzbekneftegaz" completed the modernization of $171.8 million worth UDP "Mubarek Gas Processing Plant" in Kashkadarya region in the South of the country, Uzbekistan's Ministry of Economy and State Statistics Committee said in a joint statement.
According to the report, the project envisaged the construction of the seventh stage of gas desulphurization within 3 (16th, 17th, 18th) universal blocks with total capacity of 6 billion cubic meters per year. The financing of the project was carried out at the expenses of "Uzbekneftegaz" NHC's own resources.
The implementation of the project will give opportunity to insure a reliable work of the installed capacities in purification of the natural gas from hydrogen sulfide and sour gas in the long-term perspective, as well as compensate the volume of natural gas processing to the GEA.

The blocks of the new stage will also give opportunity to solve the issue of gas processing at the "Hauzak-Shady" site in Bukhara region, which is processed by "LUKOIL" JSC within PSA with Uzbekistan.

Construction of two gas condensate fields completed in Uzbekistan

The "Uzbekneftegas" National Holding Company (NHC) completed construction of dielectric cable systems and the "South Urtabulak-Mubarek Gas Processing Plant" at "Samantepe" and "South Urtabulak" gas processing fields, a joint report by the Uzbekistan's Ministry of Economy and the State Statistics Committee said.

According to the NHC, the construction of two gas condensate fields - "Samantepe" and "South Urtabulak" in Kashkadarya region (the South of Uzbekistan) was implemented. The 71 kilometer long "South Urtabulak- Mubarek Gas Processing Plant" gas pipeline was constructed, which gives opportunity to carry out the transport of around 5.5 billion cubic meters of gas per year for further processing in the Gas Processing Plant, a booster compressor station with the capacity of 3 billion cubic meters of gas per year was constructed within the $310 million worth project.