Major events in Caspian countries' oil and gas industry for last week (July 18-22)

Analysis Materials 25 July 2016 16:12 (UTC +04:00)

Azerbaijan, Romania to boost co-op in gas transportation

Azerbaijan’s state oil company SOCAR and Romania’s state-owned company Transgaz agreed to step up cooperation in the natural gas transportation, SOCAR said.

The two sides signed a memorandum of understanding during a meeting of SOCAR President Rovnag Abdullayev with Romanian delegation.

“The memorandum of understanding (MOU) between SOCAR and Transgaz envisages strengthening cooperation in the gas transportation, studying opportunities to use Romania’s potential in the gas transit and distribution at the expense of gas supplies from Azerbaijan, the Caspian region and other promising directions, jointly studying the possibilities of cooperation in the supply and trading of natural gas and liquefied natural gas (LNG) in the Romanian market on the basis of long-term contracts and spot trading as part of the AGRI (Azerbaijan-Georgia-Romania Interconnector) project,” says the message.

The MOU will also give an opportunity to deepen cooperation between the two countries’ companies and to expand their activities in the gas market of Southeast Europe and the Balkan region.

Iran canceling oil projects with China

Iran signed a memorandum of understanding with South Korea’s Daelim Company to improve and optimize the Isfahan Refinery, which puts an actual end to Iran's long-delayed $2.5 billion contract with Chinese financers in this project. The plan to optimize the Isfahan Refinery will be carried out in a four-year period with an investment of $2 billion, Managing Director of Isfahan Oil Refinery Lotfali Chavoshi told SHANA.

“Daelim will cooperate with Iranian contractors, and National Iranian Oil Engineering and Construction Company will serve as an operator,” he added. Once completed, the project will increase the refinery’s fuel oil output by 10 million liters per day by adopting new production technologies.

Kazakh oil company extends two contracts for subsoil use

Kazakhstan’s KazMunaiGas Exploration Production JSC has succeeded to extend two contracts for subsoil use for two years (till June 16, 2018), said the website of Kazakhstan Stock Exchange (KASE).

One of the extended contracts is for hydrocarbon exploration at Karaton-Sarkamys block in Atyrau province and the other is for exploration of hydrocarbons on the territory adjacent to Uzen and Karamandybas fields in Mangystau province. The document on extending the contracts, which were earlier effective till 2016, was signed with Kazakhstan’s Energy Ministry.