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Energy news
Bulletine Energy 

2017 October 25 ( Wednesday )  14:04:38
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Government of Azerbaijan Forecasts Growth of Gas Production by 4.9% in 2018

Baku/25.10.17/ Turan: Growth in gas production is expected in Azerbaijan next year for the first time since 2015.

The government of Azerbaijan predicts for 2018 that gas production will be 30,498.3 mcm, which is 4.9% higher than in 2017. This is noted in the materials of the draft state budget of Azerbaijan for 2018, which the government submitted for approval to the country"s parliament.

According to forecasts, gas production in the republic in 2017 will be 29,060 mcm, which is 0.9% lower than in 2016.

The government forecasts oil production at 37,534,800 tons for the next year, which is 2.2% lower than in 2017. The government expects that 38,372,700 tons will be produced in 2017, which is 6.5% lower than in 2016.

In 2016, oil production in Azerbaijan amounted to 41,050,400 tons, and gas production was 29,331.4 mcm. -12B-

Cost of Heydar Aliyev Floating Semi-Submersible Drilling Rig Known

Baku/25.10.17/ Turan: The State Oil Fund of Azerbaijan (SOFAZ) sent $ 97.7 million for the construction of the first floating semi-submersible drilling rig (SSDR) of the 6th generation in Azerbaijan in January-September 2017. The cost of the project with tax payments is $ 1 billion 116.7 million.

Note that Caspian Drilling Company ("daughter" of SOCAR) and Singapore"s Keppel Fels signed a contract for the construction of a 6th generation SSDR named after Heydar Aliyev in June 2013. The customer of the construction project was Azerbaijan Rigs LLC, in which 90% of the equity share belongs to the State Oil Fund of Azerbaijan, and 10% belongs to SOCAR.

The SSDR was put into operation on May 18, 2017. The total height of the rig is 130 meters, the length is 106.5 meters, the width is 69.5 meters, and the weight is 26 tons. 160 people will work at the SSDR.

The SSDR named after Heydar Aliyev is designed to conduct drilling operations at a sea depth of 1,000 meters and to drill wells with a record depth of 12,000 meters. The facility will be used in drilling operations at the Absheron field, which are scheduled for late 2017 - early 2018. -12B

SOCAR Completes Geophysical Exploration on Azerbaijan"s Land

Baku/25.10.17/ Turan: Specialists of the Geophysics and Geology Department of SOCAR conducted complex geophysical exploration of regional oil and gas bearing profiles in the Yevlakh-Agdjabedi trough in Azerbaijan.

According to SOCAR, in the course of the work started in April of this year with the purpose of regional tracking of Mesozoic and Cainozoic deposits and studying the thickness of sediment complexes of various ages, in general, two-dimensional seismic surveys were carried out on the territory of 312 linear kilometres, as well as gravimetric and magnet-metric studies in the volume of 340 linear kilometres.

"The field work planned for 2017 has been successfully completed and the materials received are currently being processed and interpreted," the report says.

On the basis of the geophysical data obtained from the profiles, depth maps of different scales will be compiled.

"The new data will create conditions for the correct direction of exploration and drilling," the report says. -12D-

SOCAR Methanol Fulfils Production Plan for 2017

Baku/25.10.17/ Turan: SOCAR"s methanol plant has fulfilled its production plan for 2017 by 100%, SOCAR Methanol CEO Elnur Mustafayev said.

"As of October 23, the plant fulfilled the production plan by 100 percent, which is a very good indicator," Mustafayev said.

According to him, the company"s plan for 2017 was 250 thousand tons of methanol. "95% of the output was exported and 5% was supplied to the domestic market," SOCAR Methanol said.

He said that around 40 million tons of methanol is produced in the world today. The SOCAR Methanol plant provides this demand by 0.7%.

The annual capacity of the plant is 650-700 thousand tons. For the production of 1 ton of methanol, the plant consumes about 1,100 cubic meters of natural gas. -12B

Armenia Expresses Desire to Import Turkmen Gas

Baku/25.10.17/ Turan: Yerevan, Tehran and Ashgabat are negotiating the organization of transit supplies of natural gas from Turkmenistan to Armenia through the territory of Iran. The Minister of Energy Infrastructures and Natural Resources of Armenia Ashot Manukyan told journalists on October 20.

According to him, the possibility of importing Turkmen gas is being considered in the framework of the "tripartite scheme of goods exchange and the scheme for the regulation of the debts of Iran-Turkmenistan."

"To discuss the possibilities of transit and the coordination of tariffs, a meeting of experts in a trilateral format will be organized," Manukyan said.

He also said the implementation of the Armenian-Iranian gas-for-electricity program will continue.

According to him, Armenia is also ready to increase gas supplies from Iran, if Tehran offers favourable terms of supply. -0-

Gazprom to Keep Gas Price for Armenia in 2018

Baku/25.10.17/ Turan: In 2018, Gazprom will not raise the gas price for Armenia and leave it at $ 150 per thousand cubic meters. The head of Gazprom Alexei Miller told journalists yesterday after talks with the Armenian side during the official visit of Prime Minister Dmitry Medvedev.

"Today, during the talks, the terms of gas supply for 2018 were discussed, and a decision was made that the price conditions will be preserved. This means the price of Russian gas for Armenia will be $ 150 per thousand cubic meters," Miller said.

He reminded that Gazprom-Armenia (Gazprom"s 100% subsidiary) is fully responsible for supplying the republic with gas. According to him, all the necessary scheduled repairs have been carried out, and the required volume of gas has been injected. "By the beginning of the selection of active gas in the underground storage, there will be 160 mcm of gas, and this will be enough for Armenia to confidently pass the autumn-winter maximum," Miller added.

Gazprom-Armenia has a monopoly on the supply and distribution of Russian natural gas in the domestic market of Armenia. In 2013, Gazprom and Gazprom-Armenia signed a contract for the supply of up to 2.5 bcm of Russian gas to Armenia in 2014-2018. Deliveries of gas to the border with Armenia are carried out by Gazprom Export.

* According to Gazprom, Russian gas supplies to Armenia in 2016 amounted to 1.87 bcm (in 2015 - 1.92 bcm). -0

Iran Not to Give up Transit of Turkmen Gas to Azerbaijan

Baku/25.10.17/ Turan: The statement of the director of the National Gas Company of Iran (NIGC) Hamid Reza Araki that he does not support the export of Turkmen gas through the Islamic Republic to Turkey does not affect Azerbaijan.

As is known, at present Azerbaijan also receives Turkmen gas through Iran.

Hamid Reza Araki emphasized that this decision of Iran does not extend to Azerbaijan, and the transportation of Turkmen gas to Azerbaijan through Iran will be continued.

According to SOCAR, Azerbaijan began importing gas at the end of 2016.

* In January-September 2017, Azerbaijan imported 1.29 bcm of gas.