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

1. FEC

а) Oil and Gas Production

Some 34.72 million tons of oil and gas condensate were produced in Azerbaijan in January-October 2016, which is 0.8 percent less 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 main oil output in Azerbaijan currently comes from the Azeri-Chirag-Gunashli field.

The tank gas production in Azerbaijan stood at 15.49 billion cubic meters in January-October 2016, or five 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 5.21 billion cubic meters of gas from the country’s offshore and onshore fields using its own funds in January-October 2016, as compared to 5.76 billion cubic meters in the same period of 2015.

In addition to its own production, SOCAR also gets gas from the Shah Deniz and Azeri-Chirag-Gunashli (associated gas) fields by developing these fields in cooperation with foreign partners.

The total volume of gas produced from those fields and independently developed ones was 24.64 billion cubic meters in January-October 2016, as compared to 24.07 billion cubic meters in the same period of 2015.

SOCAR produced 6.32 million tons of oil from the country’s onshore and offshore fields in January-October 2016 versus 6.91 million tons in the same period of 2015.

SOCAR drilled 93,660 meters in January-October 2016 versus 92,320 meters drilled in the same period of 2015.

According to the message, some 90,987 meters out of the total drilling operations accounted for production drilling and 2,670 meters accounted for exploration drilling.

SOCAR commissioned 52 new wells in January-October 2016.

About 7.91 billion manat were invested in Azerbaijan’s oil and gas sector in January-October 2016 compared to 5.91 billion manat in the same period of 2015, the country’s State Statistics Committee said in a report as of January-October 2016.

SOCAR is working to stabilize oil production at old fields, Rahman Gurbanov, the company’s vice president for oil and gas transportation and gas facilities, said.

He said the main goal of SOCAR is not to increase oil production, but to rehabilitate the old fields.

“Falling oil prices in global markets don’t give us the opportunity to increase investment for this [increasing oil production],” Gurbanov said. “SOCAR has a program aimed at the rehabilitation of the old fields, stabilization of oil production and increasing oil recovery factor at those fields, and the work is underway in accordance with this program.”

- A decrease in commercial gas volumes compared to the total production is related to an increase in gas injection into reservoirs on the Azeri-Chirag-Guneshli (ACG) block of fields and the underground gas storage facilities in the country, Rahman Gurbanov, the company’s vice president for oil and gas transportation and gas facilities, said. "We pump gas into the reservoirs on the ACG to maintain pressure there to stabilize oil production, as well as pump it into our underground gas storage facilities as part of preparation for winter,” he said. The share of commercial gas in the total production decreased."

b) Processing

Azerbaijan produced 4.35 million tons of oil products in January-October 2016 compared to 4.58 million tons in the same period of 2015, said the report of the Azerbaijani State Statistics Committee.

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

Azerbaijan produced 944,500 tons of gasoline in January-October 2016 or 7.4 percent less than in January-October 2015.

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

Oil products

Jan.-Oct. 2016 (1,000 tons)

Compared to Jan.-Oct. 2015 (%)

Gasoline

944.5

92.6

Naphtha

152.9

94.1

Kerosene

526

91.7

Diesel fuel

1950.1

82.5

Fuel oil

445.4

147

Lubricants

9.2

47.2

Oil bitumen

155.4

109.4

Oil coke

162.7

84.1

2. Chemical complex

Azerbaijan produced 41,800 tons of propylene in January-October 2016, which is 8.7 percent less than in the same period of 2015, the Azerbaijani State Statistics Committee said in a report.

According to the report, the country produced 77,300 tons of polyethylene in January-October 2016, or 5.5 percent less than in the same period of 2015.

Some 51,100 tons of barium sulfate were produced in Azerbaijan during the period, which is 1.8 percent more than in the same period of 2015.

According to the report, 7,530 tons of isopropyl alcohol were produced in the country in January-October, which is 18.4 percent less than in the same period of 2015.

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

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

Products

Jan.-Oct. 2016

Compared to Jan.-Oct. 2015

(%)

Barium sulfate (1,000 tons)

51.1

101.8

Polyethylene (1,000 tons)

77.3

94.5

Propylene (1,000 tons)

41.8

91.3

Isopropyl alcohol (1,000 tons)

7.53

81.6

Paint products (tons)

5.88

162.1

Iodine (tons)

175.4

83.2

Argon (1,000 cubic meters)

163.7

83.9

Beauty aids (1,000 manat)

1401

7.1

Ethylene (1,000 tons)

81.9

97

Detergents (tons)

716.7

9.3 times

3. Electricity

­Azerbaijani power plants generated 18.71 billion kilowatt hours of electricity in January-October 2016, which is by 1 percent less than in the same period of 2015, the country’s State Statistics Committee said in a message.

According to the message, some 17.88 billion kilowatt hours of the total electricity generation accounted for commercial electricity in January-October 2016, which is 0.7 percent less than in January-October 2015.

Thermal power plants generated 16.14 billion kilowatt hours of the total commercial electricity generation in January-October 2016, or 3.1 percent less than in the same period of 2015.

Azerbaijan’s hydro-power plants generated 1.67 billion kilowatt hours of commercial electricity in January-October 2016, which is 25.1 percent more than in January-October 2015.

Wind farms produced 13.2 million kilowatt hours of electricity, while solar power plants - 56 million kilowatt hours of electricity in the reporting period.

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 8,100 megawatts.

Construction of the second combined cycle power unit at the Shimal power plant in Baku has already ended.

It will be commissioned by end of 2016.

The capacity of the second combined cycle unit at the Shimal power plant will be 409 megawatts.

The construction of the second unit is done under a contract with the Japanese company Toyo Engineering.

Kazakhstan detects 820 new coronavirus cases in 24 hrs
Kazakhstan detects 820 new coronavirus cases in 24 hrs
Kazakhstan's KazMunayGas forecasts annual oil output decrease
Kazakhstan's KazMunayGas forecasts annual oil output decrease
China, Kyrgyzstan to boost pragmatic cooperation
China, Kyrgyzstan to boost pragmatic cooperation
Loading Bars
Latest
South Korea, China top diplomats vow to work on North Korea, COVID-19
Turkey mulls new support measures for businesses hit by COVID-19
Tehran-Najaf flights resumed
Kazakhstan detects 820 new coronavirus cases in 24 hrs
Incumbent MP Sopio Kiladze elected member of UN Committee on the Rights of the Child
Canada police supervisor denies effort to deceive Huawei CFO about indictment
Georgia E-Space to create synergy of solar power plant and electric car charging infrastructure
Amazon workers in Germany to go on strike on 'Black Friday'
Kazakhstan's KazMunayGas forecasts annual oil output decrease
More migrants relocated from Malta to EU countries
U.S. grants ByteDance new seven-day extension of TikTok sale order
82 bandits killed in Nigerian airstrikes
China, Kyrgyzstan to boost pragmatic cooperation
AzerGold CJSC talks plans for extraction of precious metals
Kazakhstan’s Almaty Power Stations JSC opens tender to buy compressors
Volume of funds allocated to fixed capital increases in Azerbaijan’s Nakhchivan
Retail trade turnover of Azerbaijan’s Nakhchivan Autonomous Republic drops
Azerbaijani MoD unveils footage depicting advancement of Azerbaijani armyuits to liberated Kalbajar region (VIDEO/PHOTO)
Resolution of France's Senate nothing more than piece of paper for Azerbaijan - top official
Resolution adopted by France's Senate has no legal force - MFA
IKEA investment arm in talks to buy city-centre retail property in big European cities
Kazinform and IRNA news agencies hold joint online conference
China increases import of Turkish cars
Iran to compensate for Ukraine plane crash according to int'l norms
Oil tanker hit by blast at Saudi terminal, Saudi Arabia confirms
National Bank of Georgia sells funds at foreign exchange auction to stabilize lari
First Turkish Trade House to open in Azerbaijan
Azerbaijani president signs law renaming Tsakuri village in Khojavend district
Azerbaijani president signs law renaming Gushchubaba village of Khojaly district into Baharli village
Azerbaijan to monitor fields in Kalbajar - Head of National Geological Exploration Service (Exclusive)
EU allocates macro-financial assistance to Georgia to tackle COVID-19
Turkmen FM gives speech at 13th Central Asia-Korea Cooperation Forum
Turkmenistan advocates cooperation in resolving regional and global environmental problems
Azerbaijan confirms 1,229 more COVID-19 recoveries
Iranian Energy Exchange announces products to be on sale November 28
Austria provides Uzbekistan with railway equipment
U.S. weekly jobless claims increase again
Produce in Georgia agency selects business ideas for micro and small entrepreneurship grant program
Kazakhstan eyes to fully put up produced LPG on electronic trading platforms in 2021
Uzbekistan’s food production to grow by end of 2020
Fergana region becomes main textile producer in Uzbekistan
More countries allow import of Uzbek-grown products
Volume of lending in Azerbaijan’s Nakhchivan in annual circulation greatly increases
Lari depreciation among possible reasons for fuel price increase in Georgia
Azerbaijan prepares projects to restore road infrastructure in liberated territories
Production of Iran’s Sefid Dasht Steel Company increases
Kazakhstan's Kuryk port boosts cargo handling, launches direct link to Iran
Turkmenistan has sufficient reserves to mitigate effects of pandemic - IMF
Volume of cargo transportation of Azerbaijan’s Nakhchivan Autonomous Republic drops
Kazakhstan to localize production of German agricultural machinery's popular models
Iran’s Bahar Azadi gold coin price continues to fall
Georgian-produced ski equipment to be exported to Europe
Kazakhstan decreases exports to Italy year-on-year
Volume of goods released from Iran’s customs checkpoints announced
Turkmengas opens tender for purchase of instrumentation
Investments in Iran’s Kerman Province increase
Azerbaijani refugees from Kalbajar visit Martyrs Alley (PHOTO)
FM talks on possible Azerbaijan-Armenia peace treaty to French Le Point
Azerbaijan shows new footage of Azerbaijani army units entering Kalbajar (PHOTO/VIDEO)
Armenia must answer for war crimes - Azerbaijani FM
Iran’s South Pars Gas Company opens tender to buy equipment
Uzbekistan eyes to maintain macroeconomic stability in 2021
Volume of loans issued by commercial banks down in Georgia
Cable TV operators ready for full deployment in liberated Azerbaijani territories
Activities of private sector in Iran can put end to economic problems - analyst
Georgia increases export of precious metal ores and concentrates
During Karabakh hostilities, Turkey responded to political pressure exerted on Azerbaijan - ambassador
Oil shrugs off U.S. inventory gain helped by vaccine hopes
Total volume of non-bank deposits in Georgian banking sector down
Return of Kalbajar region to Azerbaijan has not only important political but also economic significance - Georgian expert
Number of bank accounts registered in Nakhchivan over 10M2020 unveiled
Azerbaijan's gold company reveals profits
Two facilities in Iran’s oil sector to be put into operation
Baku residents hold rally celebrating Kalbajar's liberation (PHOTOS)
Georgia reveals data on persimmons and caraway seeds exports
Turkmenistan’s growth model relies on large-scale public investments - IMF
Four dead as migrant boat capsizes off Canary Islands, more missing
Kazakhstan’s joining UPOV could help improve lives, provide for economic dev't
SOCAR reveals volume of transshipment through Kulevi terminal
First VP Mehriban Aliyeva congratulates Azerbaijani people on liberation of Kalbajar (PHOTO)
Cargo handling at Kazakhstan's Aktau seaport decreases over 10M2020
Foreign trade turnover of Azerbaijan’s Nakhchivan Autonomous Republic increases
Iran reveals its COVID-19 data for November 25
Life insurance in Azerbaijan occupies about half of all insurance fees - association
SOCAR and LUKOIL eye expanding co-op
Baku Stock Exchange hosts auction for CBA's short-term notes
Concerns of some OSCE MG co-chairing countries don't matter - Erdogan
Kazakhstan boosts passenger cars manufacturing within 10M2020
Turkmen IT company to create first online platform of Union of Industrialists, Entrepreneurs
Azerbaijan to export medical masks to Russia and Germany
UNESCO to take part in protection of cultural, religious heritage in Karabakh
Iran says ready to return to Jan 20, 2017
Iran talks banking obstacles
Azerbaijan disclose data on investments in local renewable energy projects
Iran prevented release of German home appliances from customs
Kazakhstan’s oil producing company opens tender to buy spare equipment parts
Turkmen company provides domestic market with products made of polyethylene
Production of agricultural products increases in Azerbaijan’s Nakhchivan Autonomous Republic
Azerbaijani soldiers created conditions for Armenian population to leave village in Aghdam - president
Iran reveals data on new enterprises in free trade zones
All news