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Major events in caspian countries' oil and gas industry for last week (Feb. 5-9)

Analysis Materials 12 February 2018 15:54 (UTC +04:00)

Details of new plan for Bahar-Gum Deniz block revealed

The plans regarding the development of Azerbaijan's Bahar-Gum Deniz oil and gas block in the Caspian Sea are currently being presented and reviewed by Azerbaijan's state oil company SOCAR, Trend learned from the US Greenfields Petroleum company, the 100-percent owner of Bahar Energy.

"We expect to formally present the Plan of Development by mid-2018 after SOCAR has had technical input," said a source in the company.

The source pointed out that specifically, the plan will include the following: 1) Gum Deniz Recompletions, 2) waterflood of the Gum Deniz BH FS-X, BH IX and BH VIII reservoirs; 3) Gum Deniz Development Drilling; 4) Bahar Recompletions; 5) Bahar NKP development Drilling; 6) Bahar BH FS-X waterflood and exploration of Gum Deniz Miocene prospect.

Greenfields Petroleum Corporation earlier announced that on November 27, Bahar Energy Operating Company Limited (BEOC), a wholly owned subsidiary of Greenfields, executed an exclusive memorandum of understanding with SOCAR Complex Drilling Works Trust, a subsidiary of the State Oil Company of the Republic of Azerbaijan (SOCAR), to formalize a partnership for the drilling of deep gas wells in the Bahar gas field offshore Azerbaijan.

The contract for exploration, rehabilitation, development and production at the block of offshore fields Bahar and Gum Deniz was signed by SOCAR and Bahar Energy in 2009. Bahar field, located 40 kilometers southeast of Baku, has been under development since 1969.

SOCAR Polymer in talks with potential customer companies

Ministry of Economy of Azerbaijan is holding talks with potential customers of SOCAR Polymer facility's production, Deputy Economy Minister Niyazi Safarov said during the conference, dedicated to the expansion of import-substituting manufacturing in industry with use of the domestic raw materials.

"We started to search for potential customers of SOCAR Polymer production. Talks with 15 companies are ongoing, but the number will increase in future. Right now there is a demand for 50,000 tons of polyethylene as a result," the official added.

The cost of SOCAR Polymer project totals $750 million. The project is carried out in Sumgayit Chemical Industrial Park.

At the first stage, production capacity of SOCAR Polymer will total 120,000 tons of polyethylene and 180,000 tons of polypropylene. The total capacity may reach 570,000 tons by 2021.

Bulk of oil imported by Ukraine accounts for Azerbaijan

In January 2018, Azerbaijan exported oil worth $36.174 million to Ukraine, the Ukrainian media reported referring to data from the State Fiscal Service of Ukraine.

Some 93.9 percent of oil supplies to Ukraine accounted for Azerbaijan, according to the report.

Azerbaijan is followed by Iran (4.8 percent), which exported oil worth $1.844 million to Ukraine, Russia (0.7 percent) - $0.277 million and other countries (0.6 percent) - $0.221 million.

In total, in January 2018, Ukraine imported crude oil and gas condensate worth $38.515 million, which is 57.3 percent more than in the same period last year.

Ukrtatnafta, an international oil refining company, signed an agreement with Azerbaijan's state oil company SOCAR in late 2016 on the annual delivery of 1.3 million tons of Azerbaijani oil to the Kremenchug Refinery.

US company to boost gas output at Azerbaijan’s Bahar field

The US Greenfields Petroleum Corporation, 100 percent owner of Bahar Energy Operating Company Limited (BEOC) expects an increase of gas production at Azerbaijan's offshore Bahar field in 2018, a source in the company told Trend.

The source noted that Bahar Energy Limited (BEL) plans to increase the 2018 production to 27 million standard cubic feet per day (MMscf/d) and to 74 MMscf/d in 2022.

"Please note that BEL does not export gas, instead we sell our gas to SOCAR Gas Export," added the source.

Greenfields Petroleum Corporation earlier announced that on November 27, Bahar Energy Operating Company Limited (BEOC), a wholly owned subsidiary of Greenfields, executed an exclusive memorandum of understanding with SOCAR Complex Drilling Works Trust, a subsidiary of the State Oil Company of the Republic of Azerbaijan (SOCAR), to formalize a partnership for the drilling of deep gas wells in the Bahar gas field offshore Azerbaijan.

The contract for exploration, rehabilitation, development and production at the block of offshore fields Bahar and Gum Deniz was signed by SOCAR and Bahar Energy in 2009. Bahar field, located 40 kilometers southeast of Baku, has been under development since 1969.

SOCAR becoming one of major fuel oil exporters from Baltics

Azerbaijan's state oil company SOCAR is becoming one of the largest exporters of fuel oil from Baltic ports to world markets, a source in the country's oil and gas market told Trend.

The source noted that SOCAR shipped over 320,000 tons of fuel oil from Baltic ports in January.

"SOCAR buys products from the Belarusian state oil company BNK and exports those products from Latvia's Ventspils and Lithuanian Klaipeda ports. SOCAR shipped 120,000 tons of fuel oil from Ventspils to Malta and more than 200,000 tons from Klaipeda in January," the source said.

Thus, the company is turning into one of the largest exporters of fuel oil from the Baltics, according to the source.

SOCAR entered the oil products market of the Baltics in late 2017. Moreover, the company actively operates in the oil products market of the Black Sea states by shipping those products from Russian ports and its own terminal in Kulevi, Georgia.

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