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Energy news
Bulletine Energy 

2017 October 06 ( Friday )  11:26:08
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Europe Is Largest Market of Gas for Azerbaijan - Aliyev

Baku/06.10.17/ Turan: Europe is the largest gas supply market for Azerbaijan, President Ilham Aliyev said while hosting the Council of Europe members in Baku.

According to him, Azerbaijan has done all the necessary work to create a modern transport infrastructure. "We have 7 export pipelines, the number of gas pipelines is four, and we can transport gas in all directions - Georgia, Turkey, Iran and Russia." The last largest gas pipeline stretches from Baku to Italy (the Southern Gas Corridor), and its construction continues," he noted.

Aliyev added that Azerbaijan for Europe is "a new source located near it, the reserves are large, and it has the potential sufficient for the next decades." "We closely cooperate on this issue with the European Commission," the head of state said.

The Southern Gas Corridor project provides for the creation of a pipeline infrastructure for the transportation of Azerbaijani gas to Europe via Turkey, which is produced within the Stage-2 development of the Shah Deniz field. -0-

SOCAR Reduced Oil Production by 2% in January-August

Baku/06.10.17/ Turan: SOCAR produced 4 million 963.5 thousand tons of oil in January-August of 2017, which is 1.9% lower than the same period last year.

According to SOCAR, in general, oil production in Azerbaijan in January-August 2017 amounted to 25 million 601.2 thousand tons (a decline of 9.29%).

In August of this year, SOCAR produced 626.6 thousand tons of oil. In August, production in Azerbaijan amounted to 3 million 101.7 thousand tons of oil.

In 2016, SOCAR produced 7 million 521 thousand tons of oil. -12B

Oil Fund Increased Its ACG Revenues by 30%

Baku/06.10.17/ Turan: In January-September of this year, the State Oil Fund of Azerbaijan (SOFAZ) received 4.574 billion dollars from the sale of profitable oil from the block of Azeri-Chirag-Gunashli fields. This was reported by the press service of SOFAZ.

Compared with the same period last year, the revenues of the Oil Fund of Azerbaijan increased by 30%.

From 2001 to October 1, 2017, SOFAZ earned a total of $ 126.683 billion from sales of profitable oil from the block of ACG fields. ---12B--

This Year SOFAZ to Spend $ 437 Million on Construction of Oil Refinery in Turkey

Baku/06.10.17/ Turan: On October 4, Azerbaijani President Ilham Aliyev approved changes in the budget of the State Oil Fund (SOFAZ) of Azerbaijan for 2017.

According to the changes, SOFAZ revenues increase up to 10 billion 813 million 861.6 thousand manat from approved 8 billion 370 million 589.8 thousand manat, i.. income growth will be 29.2%.

SOFAZ expenditures increase to 15 billion 242 million 928 thousand manat from the initial 14 billion 483 million 856 thousand manat, that is, by 5.2%.

In the revenue structure, revenues from the sale of profitable oil and gas in Azerbaijan in 2017 will make 9 billion 826.212 million manat (an increase of 30.1%).

Other items of SOFAZ income will increase slightly.

In the structure of expenditures, the changes envisage an increase in financing for improving the living conditions of refugees by 105 million manat.

In addition, the changes envisage the allocation of 744.072 million manat ($ 437.68 million at the current rate) for financing the construction of a STAR refinery in Turkey (previously there were no funds for this purpose in the budget of SOFAZ for 2017).

As previously reported, SOFAZ has so far allocated 927.9 million manat for the construction of the STAR refinery.

Income (thousand AZN)
Previous budgetRenewed budget
Sale of profit oil and gas7,550,705.39,826,212
Per acre payments3,4653,605
Income from oil and gas transit16,83017,688
Income from asset placement and management799,094.6799,094.6
Expenses (thousand AZN)
Transfers to the Central Bank to secure the country"s macroeconomic stability7,500,0007,500,000
Transfers to the state budget6,100,0006,100,000
Improvement of IDPs" living conditions90,000105,000
Samur-Absheron irrigation system reconstruction70,00070,000
Baku-Tbilisi-Kars railway construction165,825165,825
Financing of the state share in the STAR oil refinery project-744,072
Financing of the education of Azerbaijani students abroad29,30429,304
Financing of the state share in the South Gas Corridor projects496,155496,155
SOFAZ management32,57232,572


Azerishig OJSC Increases Its Authorized Capital by 65%

Baku/06.10.17/ Turan: Azerishig OJSC will increase its authorized capital by 64.9% - up to 1,460,633,532 manat. The decision to increase the authorized capital was made by the Cabinet of Ministers.

At present, the authorized capital of the company is equal to 885,633,532 manat.

The increase of the authorized capital will be carried out due to the additional issue of shares. At the same time, the number of shares in circulation will increase to 730,316,766, with a face value of 2 manat per share.

The Cabinet instructed the State Committee on Property Issues, the Financial Markets Supervision Authority and Azerishig to resolve all issues related to raising the authorized capital of the company.

Azerishig OJSC was created by the order of the President of Azerbaijan on February 10, 2015 on the basis of Bakielektrikshebeke OJSC.

The function of OJSC Azerishig includes the purchase of electricity in the territory of Azerbaijan and its distribution. -12B-

Daily Gas Supply to Consumers Increased by 1 Million Cubic Meters since October 1

Baku/06.10.17/ Turan: In order to improve the supply of the population with "blue fuel", the volume of gas supplied to consumers increases in accordance with daily demand.

As reported by PA Azerigaz (structure of SOCAR for gas distribution), while on October 1 the volumes of supplies for consumers amounted to 9.792 mcm, on October 2 they rose to 10.711 mcm. That is, the volume of natural gas supplied to the network per day increased by 1 mcm or by 9.4%.

It should be noted that this year, from the end of September, Azerbaijan has a lower temperature for this period of time. According to weather forecasters, only on October 6 the temperature of air will get warmer - up to +9+11 at night and +16+18 Celsius by day. -12B-

Deputy Head of Ministry of Energy of Russia Heads "Gas OPEC"

Baku/06.10.17/ Turan: Deputy Energy Minister of Russia Yuri Sentyurin was appointed Secretary General of the Gas Exporting Countries Forum (GECF). This was reported to journalists by the head of the Ministry of Energy Alexander Novak.

The Minister noted that in this post, Mr. Sentyurin will replace the representative of Iran, Seyed Mohammad Hussein Adeli, whose powers end at the end of 2017.

The Secretary General of the GECF is elected for two years with the possibility of extending the powers for another two years. In 2014, Mr. Adeli replaced the Russian Leonid Bokhanovsky, who headed the GECF from 2010 to 2013.

Recall, the nomination of Russia Deputy Minister for the post of Secretary General of the GECF became known in late August. Sources of RBC reported then that if Mr. Sentyurin was approved for this position, he would leave the Ministry of Energy. His duties can be transferred to another deputy minister, Anton Inyutsin. And the number of Alexander Novak's deputies will be reduced from seven to six.

The GECF is also called the "gas OPEC". It is an international organization that unites the 12 largest countries - gas producers and exporters in the world (including Russia, Qatar, Iran, Venezuela and seven observer countries, including Norway and Kazakhstan).

* Yuri Sentyurin is well-known to the participants of the world gas market. In the summer of 2016, he was a participant in the gas talks between Russia and India, followed by talks between the Russian Federation and Pakistan. In the spring of 2016, Sentyurin announced Bulgaria's desire to revive the South Stream gas pipeline. -0

Brent Strengthens Rise on Statements of Putin and Erdogan

Baku/06.10.17/ Turan: Oil prices rose yesterday on the statements of Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan, Bloomberg reports.

Russian President Vladimir Putin considers it possible to extend the OPEC and non-OPEC agreement on reducing oil production by the end of 2018 from the current deadline in March 2018. "I do not exclude this, but we will look at the situation at the end of March, I think it is possible," the head of state said at the forum Russian Energy Week on Wednesday.

Meanwhile, the Turkish President said on Thursday that Turkey, Iran and Iraq will make a joint decision to stop the transit of oil from Iraqi Kurdistan. According to him, this step will be taken within the framework of the countermeasures discussed by the three countries in connection with the September 25 referendum on the independence of Iraqi Kurdistan.

According to the US Department of Energy, oil production in the United States for the week increased by 14 thousand barrels per day (b / d) and reached 9.561 million b / d. -0

Low Prices for LNG Worldwide to Remain for Long

Baku/06.10.17/ Turan: Low prices for liquefied natural gas (LNG) in the world will continue for a long time, Leonid Mikhelson, the head of Novatek, said at the Russian Energy Week.

"Those prices that were several years ago - $ 14-16 for MBTU (thermal unit) - fell two times and now amount to $ 6-8. I believe that these prices will remain for a long time," he said.

According to him, now the task for all players in the market is to be competitive at these low prices.

At the same time, Mikhelson noted that the cost price of LNG production is now 3.5 times lower than the current price for LNG, Tass reports. -0-