Major events in Caspian countries' oil and gas industry for last week (Aug. 25-29)

Analysis Materials 2 September 2014 13:07 (UTC +04:00)

Kazakhstan explains reasons for increased petrol prices

A petrol price increase in Kazakhstan was a necessary action to prevent the shortage of petroleum products in the country, Kazakh Deputy Energy Minister Uzakbai Karabalin said during a press conference.

"Being in the Eurasian Union and having open borders, we must balance the prices to avoid deficit," Karabalin said. "But it does not work at once. We should gradually move," he said.

"And today we are meeting the needs of those who run risks and provide us with oil products," he added. "And at the same time, we keep a reasonable minimum price."

Kazakhstan announces volumes of oil supplies to Russia

Kazakhstan will supply Russia in Aug.-Sept. 2014 with over 200,000 tons of return oil, Kazakh First Vice-Minister of Energy Uzakbai Karabalin told reporters.

"We plan to start delivering about 60,000 tons of oil this month, and the following month - 182,000 tons. Moreover, the Russian side and we are now coordinating the issue of supply volumes until late this year. Overall, the process is going on, and we intend to comply with our obligations," he said.

Karabalin said the parties only need to discuss the scope and date of deliveries, and Kazakhstan does not intend to delay its decision.

He went on to add that Kazakhstan and Russia have an agreement, under which the country will deliver oil to Russia as a compensation for the oil products received by Kazakhstan between 2012 and 2013.

Turkmenistan and China discuss joint projects in oil and gas sector

Turkmenistan and China discussed the preparation of new joint projects in the oil and gas sector, states the report of the Government of Turkmenistan.

The report notes that these issues were discussed during the meeting of President of Turkmenistan Gurbanguly Berdimuhamedov in Ashgabat with Vice-Premier of the State Council of China Zhang Gaoli.

Vice Premier Wu Yi said that the state visit of the President of Turkmenistan to China in May of this year gave new momentum to the intergovernmental dialogue.

According to the results of this visit, bilateral documents were signed, which became the starting point for the preparation of new joint projects in various fields, especially in oil and gas sector, important to the economies of the two countries.

During the meeting Gaoli noted the exceptional appeal of the Turkmen market due to creation of a congenial investment climate in the country and the state support for foreign business, the report said.

Russian companies sign memorandum of cooperation with Turkmenoil

Industrial Group of Russian Metallurgical Complex and Turkmen State Concern Turkmenoil (also known as Turkmennebit) signed a memorandum of commercial and scientific-technical cooperation.

The industrial group includes Chelyabinsk Pipe Rolling Plant JSC, Pervouralsky Novotrubny Works JSC, a metal trading division of Uraltrubostal Trading House, META LLC (a company manufacturing and processing scrap metal), and an oilfield service division represented by Rimera company.

The memorandum provides for comprehensive cooperation, especially as part of the project titled "White Well", according to the message.

The industrial group's project envisages comprehensive supply of oil drilling equipment and subsequent service.

Under the memorandum the industrial tests will be carried out at six wells of the Turkmenoil. The industrial group's experts will determine the most suitable oilfield equipment to be delivered to Turkmenoil in accordance with the test results.

SOCAR commissions another filling station in Romania

SOCAR (State Oil Company of Azerbaijan) put into operation the first filling station in the Romanian city of Valcheya.

The total number of SOCAR filling stations in Romania reached 29 in eleven districts of the country.

SOCAR is the only oil producer in Azerbaijan (it has two refineries on its balance), and also owns filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland.

In 2013, SOCAR exported nearly 1.04 million tonnes of oil from its own refineries compared to more than 1.24 million tonnes in 2012. In total last year Azerbaijan produced 5.09 million tonnes of the main petroleum products.