Review of oil and gas operations in Azerbaijan (as of 2016)

1. FEC

а) Oil and Gas Production

About 41.03 million tons of oil and gas condensate were produced in Azerbaijan in 2016 that is by 1.5 percent less than in 2015, according to a report of the country’s State Statistics Committee.

In 2015, 41.69 million tons of oil and gas condensate were produced in Azerbaijan, as compared to 41.9 million tons in 2014.

Main volume of oil production in Azerbaijan accounts for the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields.

The production of tank gas in Azerbaijan stood at 18.71 billion cubic meters in 2016 that is by 3.9 percent less than in 2015, according to the State Statistics Committee.

The tank gas production stood at 19.72 billion cubic meters in Azerbaijan in 2015, as compared to 18.7 billion cubic meters in 2014.

Azerbaijan’s state oil company SOCAR produced 7.52 million tons of oil from the country’s onshore and offshore fields in 2016, as compared to 8.16 million tons in 2015.

SOCAR produces oil from offshore and onshore fields of Azerbaijan using its own funds.

A part of this oil is processed at refineries in Baku, while the other part is exported via the Baku-Novorossiysk and the Baku-Tbilisi-Ceyhan pipelines.

Moreover, SOCAR produces light oil from Azeri-Chirag-Guneshli block of oil and gas fields jointly with foreign partners.

SOCAR produced 6.27 billion cubic meters of gas from the country’s offshore and onshore fields using its own funds in 2016, as compared to 6.87 billion cubic meters of gas produced in 2015.

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

The total volume of gas produced from those fields and independently developed ones was 29.37 billion cubic meters in 2016, as compared to 29.05 billion cubic meters in 2015.

SOCAR drilled 105,250 meters in 2016, as compared to 104,410 meters in 2015.

In 2016, 102,532 meters out of the total drilling operations accounted for production drilling and the remaining 2,713 meters accounted for exploration drilling.

SOCAR commissioned 64 new wells in 2016.

About 8.62 billion manat were invested in Azerbaijan’s oil and gas sector in 2016, as compared to 7.16 billion manat in 2015 (increase by 20.4 percent), according to a report of the country’s State Statistics Committee.

b) Processing

Azerbaijan produced 5.17 million tons of oil products in 2016 compared to 5.45 million tons in 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 1.15 million tons of gasoline in 2016 or 5.8 percent less than in 2015.

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

Oil products

2016 (1,000 tons)

2015 (%)










Diesel fuel



Fuel oil






Oil bitumen



Oil coke



2. Chemical complex

Azerbaijan produced 52,200 tons of propylene in 2016 that is by 7.5 percent less than in 2015, the Azerbaijani State Statistics Committee said in a report.

The country produced 98,300 tons of polyethylene in 2016, or 5.1 percent less than in 2015.

During the period, 59,800 tons of barium sulfate were produced in Azerbaijan that is by 1.9 percent less than in 2015.

Azerbaijan saw a decline in the production of major types of chemicals in 2016.

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





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)


by 12,5 times

3. Electricity


Azerbaijani power plants generated 23.07 billion kilowatt hours of electricity in 2016, which is by 0.8 percent more than in 2015, the country’s State Statistics Committee said in a report.

According to the report, some 22.05 billion kilowatt hours of the total electricity generated during the reporting period accounted for commercial electricity in 2016, which is 1.1 percent more than in 2015.

Thermal power plants generated 20.06 billion kilowatt hours of the total commercial electricity generated in 2016, or 1 percent less than in 2015.

Azerbaijan’s hydro-power plants generated 1.91 billion kilowatt hours of commercial electricity in 2016, which is 24.1 percent more than in 2015.

Wind farms produced 17.8 million kilowatt hours of electricity, while solar power plants – 66 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.

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