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Energy news
Bulletine Energy 


2017 October 02 ( Monday )  10:20:36
Print version
Русский 

October 1, 2017 turned 20 years old from the date of release of the first issue of

Turan-Energy,

the first energy information bulletin in Azerbaijan.

Construction of TANAP Gas Pipeline through Marmara Sea Underway

Baku/02.10.17/ Turan: Construction of the Trans-Anatolian pipeline"s (TANAP) underwater segment has been underway in the Marmara Sea since September 23. According to the Turkish media, pipes are currently laid in the Turkish province of Canakkale.

Construction of the underwater part of TANAP is handled by a pipe layer under the Panamanian flag Sapurakencana 1200.

The length of the sea part of the TANAP pipeline is only 19 kilometers.

It should be noted that according to SOCAR, physical work on the construction of the Trans-Anatolian pipeline as of September 15, 2017 was completed by 82 percent.

The total length of TANAP is 1,850 kilometers. -12D

Cost Price of SOCAR"s Oil Production Increased by 3.2% in 2016

Baku/02.10.17/ Turan: The cost price of oil production at the fields of the State Oil Company of Azerbaijan (SOCAR) increased by 3.2% in 2016 compared to the indicator of 2015 - up to 97.81 manat per ton, the SOCAR report on the activity for the year 2016 says.

In the structure of the cost of one ton of oil, the share of wages was 15.5%, social security contributions - 3.2%, depreciation charges - 17.5%, expenses for materials - 3.3%, repair costs - 7.1 %, expenses for technical services - 4.7%, subsoil tax - 9.9%, transportation costs - 17%, etc.

According to the report, in 2016, oil production at the production association Azneft (SOCAR"s entity for oil and gas production) amounted to 6 million 234.8 thousand tons, which is 8% lower than in 2015. -12B-

Cost Price of SOCAR"s Gas Production Increased by 18% in 2016

Baku/02.10.17/ Turan: The cost price of gas production at the fields of SOCAR (State Oil Company of Azerbaijan) increased by 17.7% in 2016 compared to the indicator of 2015 - up to 46.77 manat per 1,000 cubic meters, according to the SOCAR report on activities for the year 2016.

In the structure of the cost price, the specific weight of wages was 9.9%, social insurance contributions - 2%, depreciation charges - 29.4%, repair services - 6.5%, technical services - 4.3%, expenses for materials - 3,2%, subsoil tax - 13,2%, transportation costs - 17,2%, etc.

According to the report, in 2016, the production of gas by the production association Azneft (SOCAR"s entity for oil and gas production) decreased by 8.6% compared to 2015 - up to 5,620.6 mcm. --12B-

SOCAR Plans to Drill 93 Wells in 2017

Baku/02.10.17/ Turan: Drilling volumes for the State Oil Company of Azerbaijan in 2017 will be about 148,000 meters, SOCAR President Rovnag Abdullayev said.

As it was informed earlier, in 2016 the volume of drilling by SOCAR amounted to 105,245 meters. Thus, in 2017 SOCAR will increase drilling volumes by 40%.

He stressed that this year SOCAR plans to commission 93 wells. "SOCAR actively applies modern technologies in the drilling process," the head of the company said.

In January-August 2017, SOCAR drilled 93,646 meters, and 52 wells were commissioned. The annual plan for 8 months was fulfilled by 63.3% for drilling wells. -12D

Average Size of Pension of Oil Workers in Azerbaijan $ 253

Baku/02.10.17/ Turan: The average pension of workers in the oil industry in Azerbaijan is 430.8 manat ($ 253.3 at the current rate), according to the Public Relations Department of the Ministry of Labor and Social Protection of the Population.

"The amount of pensions paid to them increases every year," the report said.

Currently, 28,300 employees of the republic's oil industry receive pensions.

The report says that SOCAR made compulsory social insurance contributions in the amount of more than 96 million manat in January-August this year.

However, according to the press service of SOCAR, for 8 months of this year the State Oil Company of Azerbaijan transferred 99 million 826 thousand manat to the Social Protection Fund of Azerbaijan. -12B-

Kashagan Field Produces Six Million Tons of Oil in Year

Baku/02.10.17/ Turan: On September 23, 2017, a six millionth ton of oil was produced at the offshore Kashagan field, which is developed by the North Caspian Operating Company B.V. in the Atyrau region.

"On September 28, 2016, NCOC conducted a reopening of the first wells on the A island. During this period, the company produced 6 million tons of oil. The load of the system, which indicates operational reliability, exceeds the forecast values. In addition to oil, over 1.7 bcm of gas was produced at the Kashagan field during the period of exploitation of the production capacities. The gas was sent for export through the pipeline system of KazTransGas, the company"s press service reported.

It should be noted that production on Kashagan was resumed on September 28, 2016.

In 2016, Kashagan produced 1 million tons of oil and 680 mcm of gas. -0

Uzbekistan to Increase Gas Production in 2017

Baku/02.10.17/ Turan: Uzbekistan in 2017 will increase gas production for the first time in many years, the chairman of the Board of Uzbekneftegaz Alisher Sultanov, said.

According to him, the growth will be 1.5 bcm.

Sultanov noted that gas mainly goes for domestic consumption, as well as for export in several directions. "This is the northern direction, where we cooperate with Gazprom, and with CNPC - to China," he recalled.

He added that Uzbekneftegaz is the only operator of gas export, and in what direction gas is supplied depends on technical factors and needs.

According to Turan, in 2016, the volume of natural gas purchased by Gazprom in Uzbekistan was 6.2 bcm, and in 2015 - 6.38 bcm. Uzbekistan exported 4.34 bcm of gas to China in 2016, and in 2015 it exported 1.55 bcm.

Turan recalls that in 2011, in Uzbekistan, the decline in gas production began. During this time, official statistics did not disclose data on gas production. The public was guided by the BP data. Now, for the first time, the head of Uzbekneftegaz reported that last year in Uzbekistan, 55 bcm of gas was produced. -0-

New Head of Chevron - Michael Wirth

Baku/02.10.17/ Turan: The Board of Directors of the American oil-producing company Chevron has chosen Michael Wirth as the new general director of the company and chairman of the Board, the company said in a press release.

Wirth will take both posts on February 1, 2018, when John Watson, who has been with the company since 1980 and has been in charge of it since September 2009, will retire.

Wirth has been working at Chevron for 35 years. During his career, he held a number of important posts in the company's refinery, in February of this year he was appointed deputy chairman of the Board of Directors.

The 56-year-old specialist was among the main candidates for replacing J. Watson in Chevron.

Chevron is the third largest oil producer in the world from among those traded on the stock exchange. The company traces its history from 1879. Its capitalization is now about $ 222.5 billion. -0--

Miller Unveils New Data on Turkish Stream

Baku/02.10.17/ Turan: Gazprom CEO Alexei Miller said in Ankara on Thursday that nearly 300 kilometers of the Turkish Stream gas pipeline have been built.

According to him, along the first line of the pipeline, 224 km were built, and on the second line there were 74 km. He said that "the average speed of laying the pipe is 3.5 kilometers per day, and sometimes the speed is 4.5 kilometers."

"Apparently, following the results of 2017, Russia will establish a historical record of gas supplies to the Turkish market. And if we talk about September this year, compared with September 2016, the volume of gas supplies to Turkey increased by 48%. This once again indicates that the Turkish Stream is a project that is economically justified and in demand by the Turkish market," the head of Gazprom said.

It is worth noting that global projects are pretty much hitting the financial state of Gazprom.

Fitch Agency in its recent review notes that Gazprom will have to borrow 600 billion rubles annually, and by early 2020 the debt will be increased by 1.8 trillion rubles.

Gazprom in the next three years will have to beat its own record of increasing debt to finance the mega construction of pipelines bypassing Ukraine to Turkey and China.

Thus, every year the costs for three major projects - the Power of Siberia, Turkish Stream and Nord Stream 2 will cost the gas giant about 1.35-1.45 trillion rubles. The company will be unable to pay for these construction projects itself; therefore, the money will have to be borrowed.

Recall that throughout the year 2017, Gazprom has a negative cash flow. In the first half of the year capital expenditures for construction amounted to almost 800 billion rubles, and operating profit was only 450 billion rubles. -0-

Oil Prices in Range of $ 40-60 per Barrel to Keep Long

Baku/02.10.17/ Turan: The corridor of oil prices in the world market in the long term is expected at $ 40-60 per barrel, said the executive director of SOCAR Trading Arzu Azimov.

"The corridor of $ 40-60 per barrel is a new reality of the market that global producers must accept," said Azimov, whose words the Financial Times quotes.

According to him, such a corridor will last "for quite some time". -0-

Oil Deficit Could Spur Price up to $ 80 per Barrel - S & P Dow Jones

Baku/02.10.17/ Turan: The rise in oil prices observed in recent weeks may continue, as "real rebalancing" has finally started on the market, said Jodi Gunsberg, head of the raw materials and real estate index of S & P Dow Jones Indices.

She does not rule out that in the event of a supply shortage, oil could rise in price to $ 80 per barrel, and possibly to $ 85 per barrel. According to her, "growth will not be instantaneous," structural backwardness and a deficit in the market can support it.

Note that the forecasts of Gunsberg differ from the views of most analysts who believe that, in the coming years, oil prices will at best fluctuate from $ 50 to $ 60 per barrel. -0-