Main - TURAN.AZ
Politics
Economics
Energy
Finance
Analytics
- ISSUES -
Bulletin Political News
Bulletin Economical News
Bulletin Energy News
Bulletin Finance News
- REVIEWS -
Markets review
Political Monitoring
Economic Review
* * *
Main - CONTACT.AZ
Want to Say
Social
Culture
Worldwide
- INTERVIEW -
Interview
ÇƏTİN SUAL
- REPORTS -
Photo sessions
Actual report
Significant Azeris
- NEWS COLLECTION -
«Georgian case»
* * *
Enter Main - TURAN.AZ AZ ... RU
Bağla

Energy news
Bulletine Energy 


2017 November 08 ( Wednesday )  10:56:30
Print version
Русский 

 

Ilham Aliyev Awards Oil Industry Workers on Occasion of Extraction of Two Billionth Ton of Oil

Baku/08.11.17/ Turan: The order of the President of Azerbaijan awarded the workers of the oil industry of the country. According to the website of the head of state, Mukhtar Bahadur Oglu Babayev, Director General of the Azerkimya (petrochemical entity of SOCAR), was awarded the Shohrat (Glory) Order on the occasion of production of the two billionth ton of oil from the Azerbaijani oilfields and for his services in the development of the oil and gas industry.

In addition, the President awarded two Vice-Presidents of SOCAR, Suleyman Mehrali Oglu Gasimov and Khalig Rafi Oglu Mammadov with the Emek (Labor) Order of the 2nd degree.

By the presidential order another 48 specialists of the national oil industry were awarded the Tereggi (Progress) Medal. -12B-

Hybrid Economy of Azerbaijan: How to Separate Oil from Non-oil?

Baku/08.11.17/ Turan: Parliamentary committees approved the draft state budget of Azerbaijan for 2018 and recommended the document for discussion at the plenary session of the Milli Majlis.

The Minister of Finance of Azerbaijan Samir Sharifov said that according to the draft, the state budget revenues for the next year are projected at 20 billion 127 million manat (an increase of 20% compared with the forecast for 2017), and the expenditures - at 20 billion 905.7 million manat, +16.5%).

According to him, in the income structure transfers from the State Oil Fund to the state budget for 2018 are planned at a rate of 9 billion 216 million manat (in 2017 - 6.1 billion manat) or 45.8% of all budget revenues.

The government is going to ensure the growth of budget revenues in 2018 mainly due to oil revenues: 3.116 billion manat due to the growth of transfers from the Oil Fund and 40 million manat due to growth of tax payments by oil companies.

Analyzing the budget, the independent economist Rovshan Agayev said the government, using the data, artificially sought to reduce the role of the oil sector in the replenishment of the treasury. So, in 2016-2017, taxes on wages of oil workers to the budget averaged about 350 million manat. For some reason, this item was sent to the column "non-oil sector" (SOCAR, oil companies operating under PSA contracts, as well as their contractors and subcontractors).

Turan News Agency draws attention to the fact that the government, through "redistribution" operations, has also managed to reduce the oil sector"s share in GDP, instead of this, having increased its role in the non-oil sector of the national economy. For example, according to the results of 2016, the State Statistics Committee indicates that the number of workers in the oil sector is 34.2 thousand people, and the non-oil sector is 1 million 480.2 thousand. Meanwhile, the GDP in the non-oil sector was 39.40 billion manat (62.2%), and in the oil sector - 20.58 billion manat (37.8%). As Turan News Agency found out, the government achieved such results only on "paper", not on the real sector.

So, according to the results of 2016, there were 52,000 employees in the State Oil Company of Azerbaijan (SOCAR), about 14,000 oilmen worked within the framework of 15 PSA contracts and in joint ventures, and almost 20,000 people worked in oil and gas service companies.

According to the State Statistics Committee (SSC) itself, at the beginning of 2017 there were 694 small and medium-sized enterprises operating in the extractive sector. Then, how does it happen that the SSC data are even lower than the number of SOCAR employees?

As Turan News Agency found out, when calculating the oil economy, the government took into account only extractive enterprises, drilling entities and oil refining. For example, the largest SOCAR construction companies, e.g. platforms, oil structures and submarine pipes, were allocated to the non-oil sector, that is, the construction sector. In the country, there are about 800 petrol stations and oil depots, which were referred to wholesale and retail trade (their annual turnover is almost 2 billion manat). SOCAR has its own communication system, which considerably increases the ICT of Azerbaijan. Besides, oil and gas flows through pipelines on paper also serve to increase the non-oil sector, e.g. the transport sector. You can imagine what volume of capital-intensive work has been performed within the framework of the Shah Deniz-2 project, and the overwhelming part of it is in the "non-oil sector" column.

Next year in Sumgait, SOCAR will put into operation a carbamide plant, that is, an enterprise for the production of fertilizers. The plant itself will be part of SOCAR, and the products will be in the non-oil sector.

The government, according to its statistics, recognizes that in the oil sector, 1 working person produces an average of 601.75 thousand manat, while in the non-oil sector the index is only 26.62 thousand manat (22.6 times less). In real life, the goods produced in the oil sector are much more than indicated in the documents.

In the end, while everything is so confused, it is not clear in which part of our economy the oil sector ends, and in which the non-oil sector begins... - 12

With Sharp Drop in Production, Azerbaijan's Revenues from ACG Block Increased by 29%

Baku/08.11.17/ Turan: In January-October 2017, revenues to the State Oil Fund of Azerbaijan (SOFAZ) from the sale of profitable oil from the Azeri-Chirag-Guneshli (ACG) block amounted to $ 5 billion 195 million.

According to SOFAZ, in January-October 2016, the Fund received $ 4 billion 21 million from ACG. Thus, these receipts to the Fund increased by 29.2% for the reported period in 2017.

In general, from 2001 to November 1, 2017 SOFAZ received $ 127 billion 304 million from the sale of Azerbaijan"s profitable oil from ACG, SOFAZ reported. In 2016, SOFAZ"s revenues from the sale of profitable oil from ACG amounted to $ 5.1 billion.

The Caspian Barrel Oil Research Center, commenting on the SOFAZ data for Turan News Agency, reported that Azerbaijan was very lucky with revenues from the sale of ACG oil this year. "We must take into account the fact that oil production from ACG decreased by almost 17 million barrels or by 9% in the first 10 months of 2017. And under such circumstances, the state"s revenues grew by 29%," the Center noted.

And how did this happen? After all, oil prices grew by about 33% in the same period. As the Oil Research Center explained, an important role in this process was also played by a significant reduction in the costs of the international consortium. -12B

SOCAR Attracts Consultant to Analyze Development of Twenty Deposits

Baku/08.11.17/ Turan: The US consulting company DeGolyer and MacNaughton will prepare recommendations for the effective development of deposits in Azerbaijan on the order of SOCAR, SOCAR said.

SOCAR and DeGolyer and MacNaughton signed an agreement on the analysis of the effectiveness of the process of developing deposits and increasing production from the fields of SOCAR and on technical support.

According to the agreement, the US company will be involved in providing services for effective management of oil and gas facilities on the existing SOCAR fields operated for a long period, the information says.

Under the agreement, DeGolyer and MacNaughton will analyze the development plans for 20 fields, and will prepare recommendations for increasing the level of oil production and the oil recovery factor, reducing oil production costs, and recommendations for determining strategic goals, and will also participate in their implementation.

DeGolyer and MacNaughton carried out similar work in Russia and Kazakhstan and achieved good results, the information says. -0-

Azneft Puts New Well in Bulla-Deniz Field into Operation

Baku/08.11.17/ Turan: The production association (PA) Azneft (structure of SOCAR for oil and gas production) commissioned a high-yield exploratory well No. 78 at the Bulla Deniz field, the PA said.

"Well No. 78 was drilled from offshore platform No. 78. The well was put into operation with a daily production rate of 120 tons of condensate," the information says.

The offshore Bulla Deniz field was discovered in 1973 and commissioned in 1975. The deposit is on the balance of the Oil and Gas Production Department named after Nariman Narimanov. -12B-

Ministers of Turkey and Azerbaijan Discuss Joint Energy Projects

Baku/08.11.17/ Turan: The Azerbaijani Energy Minister Parviz Shahbazov discussed in Turkey the possibilities of expanding the Azerbaijani-Turkish energy cooperation, the Azerbaijani Energy Ministry said.

"Shahbazov began his first foreign visit as Azerbaijan's Energy Minister to Turkey. During a meeting with his Turkish counterpart Berat Albayrak on Tuesday, he discussed the expansion of energy cooperation between the two countries and the prospects for expanding the Southern Gas Corridor," the report said.

According to the Ministry, the parties also discussed issues of cooperation between the two countries in the electricity sector, the construction of the Star refinery, the activities of the petrochemical complex Petkim in Turkey and the construction of the Trans-Anatolian gas pipeline (TANAP).

Shahbazov and Albayrak also exchanged views on the current situation in the global energy market. -12B

Uzbekistan Holds Talks on Exporting Its Gas in New Direction

Baku/08.11.17/ Turan: Since October Uzbekistan has already held several rounds of negotiations on selling its gas to a new buyer.

"We held two rounds of talks with Uzbek partners on gas supplies to Tajikistan in mid-October and early November," Olimdzhon Rahimov, head of the Tajiktransgaz (Tajikistan"s gas transportation system operator), told Interfax.

According to him, the talks were held with the representatives of Uztransgaz and Uzneftegaz and are now at the stage of determining the price of gas and the volume of purchases that would satisfy both sides.

"We are waiting for the price they will offer. Preliminarily, it is about prices below market prices. They are interested in selling gas, and we are going to buy it. Until the price is determined, it is impossible to talk about the needs. Beginning in 2013, when gas supplies from Uzbekistan ceased, the republic's enterprises switched to coal, but now many of them are ready to buy gas at an affordable price," Rahimov said.

According to him, the use of natural gas has several advantages over coal. "This is both the ecology and the production costs. The efficiency of using gas is higher than coal. Among the potential buyers are the Tajik aluminum plant, a cement plant, and a thermal power plant," the representative of Tajiktransgaz said.

"If they announce the price before the end of November, and the government of Tajikistan approves it, by the middle of December there is the possibility of concluding an agreement," Rahimov said.

Tajikistan imported natural gas from the neighboring country until early 2013. Since 2008, Uzbekistan gradually increased the price of natural gas for Tajikistan from $ 145 per 1,000 cubic meters in 2008 to $ 300 per 1,000 cubic meters in 2012. Against this background, the volume of deliveries was decreasing: from 600 mcm in 2008 to 200 mcm in 2012.

The own natural gas production in Tajikistan is carried out in small volumes (just over 3 mcm per year) in the south of the country.

The resumption of negotiations on the supply of Uzbek gas to Tajikistan became possible after the warming of the bilateral relations. Under the rule of the ex-President of Uzbekistan Islam Karimov political problems periodically happened between the two countries. -0-

Fuel Consumption by Cars in Europe Exceeds Declared Figures by 42% - Experts

Baku/08.11.17/ Turan: The real fuel consumption by new cars in Europe is 42% higher than the figures announced by the producers, the Westdeutsche Allgemeine Zeitung reports with reference to the results of the study of the independent organization, the International Council for Clean Transport (ICCT ).

For car owners, this means an additional cost of about EUR 400 per year on average.

The main reason for the big difference between the declared and real consumption of gasoline and diesel fuel is the fact that manufacturers test cars in testing laboratories, and not in real conditions, ICCT said. A particularly big difference in the data (over 50%) was noted in premium cars, as well as in hybrid vehicles.

"The discrepancy between official and real indicators is higher than never before. Just 10 years ago, the difference between the specified manufacturers and the really measured consumption was only about 15%," notes the ICCT Europe Director Peter Mock. In 2013, this figure rose to about 25%.

The study is based on data from 1.1 million vehicles from eight European countries.

However, since September of this year in Europe, more stringent rules are in place for testing new models of cars, and from autumn 2018 these standards will apply to all models. Experts of the organization believe that, in connection with the new rules, the discrepancy between the real and declared consumption of fuel will be halved.

Analysts of ICCT have established a discrepancy between data on real fuel consumption and official information also among automakers in China, Japan and the US - but it is not so high as in Europe. -0-

EBRD Does Not Believe in Oil Prices Rising above $ 65

Baku/08.11.17/ Turan: The European Bank for Reconstruction and Development (EBRD) expects that the price for Brent crude oil will be in the range of $ 55-65 per barrel in the medium term, according to the bank"s updated Regional Economic Prospects report.

The report notes that in September, oil prices reached their highest levels since the summer of 2015, in part because of a weaker US dollar and stronger global oil demand.

"The average price for oil in the first 10 months of this year was 19 percent higher than in the same period in 2016," the report says. -0-