Review of oil and gas operations in Azerbaijan (January-August 2016)

1. FEC

а) Oil and Gas Production

Some 28.12 million tons of oil and gas condensate were produced in Azerbaijan in January-August 2016, which is by 1.1 percent more than in the same period of 2015, the Azerbaijani State Statistics Committee said in a report.

The country produced 41.69 million tons of oil and gas condensate in 2015, as compared to 41.9 million tons in 2014.

The major part of oil produced in Azerbaijan accounts for Azeri-Chirag-Guneshli block of oil and gas fields.

The tank gas production in Azerbaijan stood at 12.38 billion cubic meters in January-August 2016, or 0.8 percent less than in the same period of 2015.

This is while the country produced 19.72 billion cubic meters of tank gas in 2015, as compared to 18.7 billion cubic meters in 2014.

Azerbaijan’s state oil company SOCAR produced 5.06 million tons of oil from the country’s onshore and offshore fields in January-August 2016 versus 5.54 million tons in the same period 2015.

SOCAR produced 4.22 billion cubic meters of gas from the country’s offshore and onshore fields using its own funds in January-August 2016, as compared to 5.54 billion cubic meters in the same period in 2015.

b) Processing

Azerbaijan produced 3.42 million tons of oil products in January-August 2016 compared to 3.62 million tons in the same period of 2015, said the report.

Currently, SOCAR is modernizing its processing facilities, as the fuel consumption has increased in the country.

During the reporting period, Azerbaijan produced 732,600 tons of gasoline, or 7.1 percent less than in January-August 2015.

Below is the summary table of oil products’ output in Azerbaijan:

Oil products

Jan.-August 2016 (1,000 tons)

Compared to Jan.-August 2015 (%)










Diesel fuel



Fuel oil


2,1 times




Oil bitumen



Oil coke



- The Heydar Aliyev Baku Oil Refinery has suspended production of oil products, including AI-92 gasoline due to the maintenance work since August 1. Afterwards, SOCAR sold the gasoline, which remained in the storage facilities. However, taking into account the high gasoline consumption in the country, a decision was made to purchase certain volumes of AI-92.

- SOCAR signed a contract with the Austrian Poerner company for detailed design, procurement and control for the new bitumen unit construction at the refinery as part of the measures aimed at the implementation of the project of reconstruction and modernization of the Heydar Aliyev Baku Oil Refinery. The unit with a production capacity of 400,000 tons will be commissioned in mid-2018.

2. Chemical complex

Azerbaijan produced 33,700 tons of propylene in January-August 2016, which is 6.3 percent less than in the same period of 2015, the report said.

According to the report, the country produced 62,700 tons of polyethylene in January-August 2016, or 1.9 percent less than in the same period of 2015.

Some 40,800 tons of barium sulfate was produced in Azerbaijan during the period, which is 6.4 percent more than in the same period of 2015.

According to the report, 7,530 tons of isopropyl alcohol was produced in the country in January-August, which is 18.9 percent more than in the same period of 2015.

Azerbaijan saw a decrease in the production of major types of chemicals in January-August 2016.

Below are the figures for output of major chemicals in Azerbaijan:


January-August 2016

Compared to January-August 2015 (%)

Barium sulfate (1,000 tons)



Polyethylene (1,000 tons)



Propylene (1,000 tons)



Isopropyl alcohol (1,000 tons)



Paint products (tons)



Iodine (tons)



Argon (1,000 cubic meters)



Beauty aids (1,000 manat)



Ethylene (1,000 tons)



Detergents (tons)


2.6 times

3. Electricity

­Azerbaijan’s power plants generated 15.1 billion kilowatt hours of electricity in January-August 2016, or 3 percent less than in the same period of 2015, the report said.

During the period, commercial electricity accounted for 14.42 billion kilowatt hours of the total produced electricity, or 2.7 percent less than in January-August 2015.

Thermal power plants generated 13.56 billion kilowatt hours of the total commercial electricity output in January-August 2016, or 5.4 percent less than in the same period of 2015.

During the period, Azerbaijan’s hydro-power plants generated 1.47 billion kilowatt hours of commercial electricity, or 22.5 percent more than in January-August 2015.

This is while, wind farms and solar power plants in the country produced 11 million and 43.8 million kilowatt hours of electricity, respectively, in January-August 2016.

Azerenergy JSC is the main producer of electricity in Azerbaijan. It has over 200 substations with a capacity of 500, 330, 220 and 110 kilovolt amperes, as well as 10 hydro power plants and 14 thermal power plants.

At present, the generation capacity of Azerbaijan's power supply system is 7,200 megawatts. This allows generating around 24 billion kilowatt hours of electricity annually and enables the country to annually export 2.1 billion kilowatt / hours of electricity.

Iran and Azerbaijan increased the electricity swap by 2.5 times, Iran’s Energy Minister Hamid Chitchian said.

Chitchian said a new 330-kilowatt power line, with a length of 52 kilometers, has been commissioned between Iran and Azerbaijan.

“Thus, Iran and Azerbaijan increased the electricity swap from 200 megawatts to 500 megawatts,” noted the minister.

The potential of renewable energy sources in Azerbaijan exceeds 25,400 megawatts, Vice President of the State Agency on Alternative and Renewable Energy Sources of Azerbaijan Nurali Yusifbayli said.

He made the remarks at the First International Association for Energy Economics (IAEE) Eurasian Conference being held in Baku, Azerbaijan.

The potential of solar energy in Azerbaijan accounts to over 8,000 megawatts, wind power -15,000 megawatts, bioenergy - 900 megawatts, geothermal energy - 800 megawatts, small hydropower plants - 700 megawatts.

Among the major ongoing projects on development of the renewable energy, Yusifbayli mentioned ‘Yeni Yashma’ with a capacity of 50 megawatts in Azerbaijan’s Khizi district, the wind farm ‘Wind Island – 1’ with capacity of 198 megawatts, the wind farm ‘Absheron’ with capacity of 80 megawatts and a power plant running on bio-resources with capacity 16 megawatts.

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