Weekly economic review (May 18-22)

Analysis Materials 25 May 2015 17:42 (UTC +04:00)

SOCAR names volumes of petroleum products export on new direction

The company SOCAR (State Oil Company of Azerbaijan) continues transporting petroleum products by transit through Russia, a source on the oil and gas market of Azerbaijan said.

At present, about 46,000 metric tons of petroleum products have already been exported through Russia.

"As of May 22, about 46,000 metric tons of petroleum products have been exported via the new route," he said. "The volume of exported vacuum gas oil remained at the level of 30,000 metric tons, while the volume of diesel fuel account for almost 16,000 metric tons. Recently, due to objective reasons, the export in this direction decreased slightly, but this does not mean that it will be stopped in the future."

There are several routes via which petroleum products are exported through Russia. Some of them are transported through the port of Azov in the Sea of ​​Azov. Another part is transported via the more northern routes, including the route via the Baltic Sea.

SOCAR exported 475,000 metric tons of petroleum products in Jan.-Apr. of 2015, which is 41.9 percent more than in the same period of 2014.

This is while the company exported 1.2 million metric tons of petroleum products in 2014, compared to nearly 1.05 million metric tons in 2013.

Previously, Azerbaijani petroleum products were produced at two refineries in Baku. Both of these refineries were included in SOCAR that annually processes around 7 million metric tons of oil produced at onshore and offshore fields with its own funds.

SOCAR announced about liquidation of Azneftyag oil refinery and its merger with Baku Oil Refinery named after Heydar Aliyev in December 2014. The major part of Azerbaijani petroleum products is exported to Georgia.