Major events in caspian countries' oil and gas industry for last week (March 26-30)

Production of crude oil storage tanks launched in Azerbaijan

The Sumgayit Technological Park (STP) has launched production of high pressure tanks for storing crude oil, the STP told Trend.

The products are manufactured jointly with the South Korean company Seoul Machinery, which assists in the production process.

"Since yesterday, representatives of the American Society of Mechanical Engineers (ASME) have begun to audit the production process and the finished products. To start mass production of oil and gas storage tanks, we need to obtain a certificate of compliance with the mandatory requirements of ASME. Deploying the local production, we will be able to ensure import substitution, and oil companies operating in Azerbaijan will not need to buy them outside the country, " the STP said.

Azerbaijan, Iran expand co-op in oil and gas sector

The memorandum of understanding between Azerbaijan and Iran on the joint development of relevant blocks in the Caspian Sea will allow the countries to greatly expand cooperation in the oil and gas sector, Azerbaijani Deputy Minister of Economy Sahil Babayev told Trend.

He added that the document opens new prospects for joint development of fields.

"The National Iranian Oil Company has a 10-percent-share in Shah Deniz project. Up till now, Iran has invested about $3 billion in Azerbaijan's oil and gas sector. The signed memorandum will allow working on the development of new fields," Babayev said.

The memorandum of understanding on the joint development of relevant blocks in the Caspian Sea was signed during Iranian President Hassan Rouhani's visit to Azerbaijan.

Schedule of oil shipment from Novorossiysk port for April

Azerbaijan's state oil company SOCAR will ship 80,000 tons of oil from the Russian port of Novorossiysk in April 2018.

The oil will be shipped in one batch. In total, 2.26 million tons of oil will be shipped from the Novorossiysk port in April.

SOCAR delivers the oil produced at its own fields, as well as the oil from joint ventures and operation companies working at Azerbaijan's onshore fields, to Novorossiysk. The oil is delivered to the port via the Baku-Novorossiysk pipeline operated by SOCAR.

SOCAR exported 1.5 million tons of oil via the Baku-Novorossiysk pipeline in 2017.

Below is the schedule of oil shipment from the Novorossiysk port for April, provided by the Energy Intelligence Group.

US company announces long-term plans on Azerbaijan’s Bahar field

Bahar Energy Limited (BEL), subsidiary of US Greenfields Petroleum, plans to initiate a waterflood of the FS reservoir in Azerbaijan's Bahar gas field in 2019 starting with the implementation of five waterflood pilots, said a message from Greenfields Petroleum.

Assuming a positive reservoir response to the pilot flood, a full-scale water injection project would be implemented by BEL, said the company.

"Initially the drilling of two down dip injection wells located in the water leg of the FS reservoir would be carried out. The drilling of a total of nine injection wells is planned over a five-year period from three existing platforms and one new platform to be constructed on the western flank of the reservoir," said the message.

The contract for exploration, rehabilitation, development and production at Bahar and Gum Deniz block of offshore fields was signed by Azerbaijan's state oil company SOCAR (20 percent) and Bahar Energy (80 percent) in 2009. Bahar field, developed since 1969, is located in 40 kilometers south-east from Baku.

TAPI gas pipeline project to allow Afghanistan integrating into global economy

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline can become a starting point for the real integration of Afghanistan into the global economic system, the online newspaper Oil and Gas Complex of Turkmenistan reported.

Turkmenistan's Deputy Minister of Finance and Economy Merdan Bayramdurdyev spoke about this at an international conference dedicated to the development of Pakistan's cooperation with Central Asian countries.

"The TAPI project, in addition to the obvious economic benefits and dividends for all its participants, can become a starting point for the real integration of Afghanistan into the global economic system as an equal partner, active participant and subject of modern global economic ties," the deputy minister said.

The TAPI project is designed to ensure energy security in Central and South Asia.

Total length of the TAPI gas pipeline will be 1,840 kilometers. Construction of the Turkmen section of the TAPI gas pipeline began in December 2015.

Construction of the Afghan section of the TAPI gas pipeline started Feb. 23, 2018.