Major events in Caspian countries' oil and gas industry (August 5-9)

Analysis Materials 14 August 2013 11:55 (UTC +04:00)

Forecast for Shah Deniz-2 costs in 2013 lowered

The consortium for development of Azerbaijani gas condensate field Shah Deniz in the Azerbaijani sector of the Caspian Sea plans to spend some $ 1.9 billion on the project's second stage, according to a BP report on the results of activity in 2012. It was forecasted earlier that some $ 2.3 billion will be allocated this year for the second stage of the Shah Deniz field development. According to the report, the terms of sale of gas from Shah Deniz have been agreed with the purchasers in Italy, Greece and Bulgaria, and will be consolidated in September. "A final investment decision on the project is planned to be taken in the fourth quarter of this year, and the first gas from the field will be produced in 2018," the report says.

Kazakhstan produced over 40 million tons of oil and gas condensate in first half-year

In the first half-year, Kazakhstan produced more than 40 million tons of oil and gas condensate, the country's Minister of Oil and Gas Uzakbai Karabalin informed President Nursultan Nazarbayev, according to the press service of Akorda. "In the first half of 2013, production of oil and gas condensate stood at over 40 million tons, accounting for 101.8 percent of the corresponding period in 2012," the Minister said. According to him, the production of natural and associated gas is also in line with the schedule. "Plans for the export of oil and gas production are generally met, and individual indicators will be aligned by the end of the year," Karabalin said.

Refinery representatives: Ban on oil products export exacerbates stocking of depots in Kazakhstan

The ban on the export of oil products introduced by the government in Kazakhstan has even more exacerbated the situation for domestic refineries associated with the stocking of tank farms, the Kazakh oil refiners who have arrived in Astana to address the issue said. "The ban on the export of oil products introduced by the country's government exacerbates the situation even more for domestic refineries associated with stocking the tank farms. The ban is an unprofessional decision that is illogical and against the interests of our country," representatives of Kazakh oil refineries said on the condition of anonymity. The government of Kazakhstan has introduced a ban on the export of petroleum products. The decree was signed by the Prime Minister of the Republic Serik Akhmetov, and came into force in July 2013.

Production wells drilled at Turkmenistan's largest gas field

Some 22 production wells have been drilled at the Galkinish field which is the second largest gas field in the world, Turkmenistan's Oil and Gas and Mineral Resources Ministry said. Most of these wells were completed with testing and have given a large inflow of natural gas. It was also noted that drilling has to be carried out in high temperatures and under abnormally high pressure. In particular, rig No. 200 in the area of the giant Galkinish field was inaccessible because of high dunes surrounding it. Prior to this a number of exploration wells confirmed the presence of production reserves of hydrocarbons. According to the conclusion of geologists who have studied the materials of seismic exploration, the dimensions of the gas-bearing reservoir on the new field amounted to more than 600 metres. No known gas-bearing structure has such parameters in Turkmenistan.

International oil and gas university to be created in Turkmenistan

Turkmen President Gurbanguly Berdimuhamedov signed a decree about the creation of International Oil and Gas University on the basis of the State Oil and Gas University. According to the decree, the creation of a new university is carried out in order to cardinally improve the training of highly qualified specialists for oil and gas industry. Foreign teachers and experts will be invited to teach at the new university.