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Energy news
Bulletine Energy 

2017 June 12 ( Monday )  10:07:55
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Moscow on Creation of Electric Power Belt with Baku and Tehran

Baku/12.06.17/ Turan: Russia interacts with Azerbaijan and Iran in creating a single electric power belt. This statement was made to journalists by the Minister of Energy of the Russian Federation Alexander Novak.

Novak arrived in Baku yesterday to pay tribute to the memory of Azerbaijani Energy Minister Natig Aliyev, who died on June 9.

"We highly appreciate our cooperation, we work together in the field of energy, developing relations with neighboring countries, including in the electric power industry and creating a single electric power belt with Azerbaijan and Iran," the Russian minister said.

He also stressed that Russia and Azerbaijan "together implement agreements on balancing the oil market between non-OPEC countries."

"Azerbaijan is one of the key places here," Novak added.

According to him, the two countries continue cooperation in the gas industry. "I think this is one of the promising areas of trade and economic cooperation between our countries," he said. -12D-

Tenders for Maritime Infrastructure under Absheron Project Already at Final Stage

Baku/12.06.17/ Turan: French Total plans to sum up the tender results in July to select a contractor for laying underwater pipelines and cables to the Absheron field in the Azerbaijani sector of the Caspian Sea, the CJSC Azerbaijan Shipping Company (Kaspar) said.

The head of Kaspar Rauf Veliyev at the end of last week at a meeting with representatives of Total discussed cooperation issues.

"The Total representative Carine Lafontaine said during the meeting that the company announced a tender for the laying of underwater pipelines and cables to the Absheron field. The winner of the tender will be announced next month. Then representatives of Total and the winner company will inspect the vessels of the Caspar oil flotilla in July-August 2017," the information says.

Veliyev, in turn, said that the shipping company, which includes both a transport and an oil flotilla, has about 300 ships. Noting that the shipping company provides offshore services for local and foreign companies, in the process of oil and gas production at sea, he expressed confidence in establishing a successful cooperation with Total.

It should be noted that the first stage of development of the Absheron field includes the drilling of one well at a depth of 450 meters with a penetration of more than 6,000 meters. Drilling operations will begin in the next few months using a new floating semisubmersible drilling rig. The projected daily production rate of the well will be 2 thousand tons of condensate and 4.3 Mcm of gas.

The extraction of the first gas from Absheron is expected in late 2019.

* On November 21, 2016, SOCAR and Total signed an agreement on determining the main contractual and commercial conditions for the first stage of development of the Absheron gas condensate field. In February 2017, SOCAR approved a program for the development of this project.

SOCAR Increased Allocations to State Budget by 19%

Baku/12.06.17/ Turan: Tax payments of the State Oil Company to the state budget of Azerbaijan in January-May 2017 amounted to 669.888 million manat. This was spread by the press service of SOCAR.

It should be noted that for 5 months of 2016 SOCAR paid 562.781 million manat of taxes to the state budget. That is, in January-May 2017, its deductions to the state budget increased by 19% or 107.107 million manat.

In May of this year, SOCAR's tax deductions to the state budget of Azerbaijan amounted to 139.586 million manat (+ 18.5%).

SOCAR"s compulsory social insurance payments for January-May 2017 amounted to AZN 62.46 million (an increase of 8.9% or AZN 5 million 101,000).

* After the Oil Fund, SOCAR is the main donor of the state budget. Revenues from the Oil Fund and SOCAR provide about 55% of all revenues of the state budget.

SOCAR Commissions New Well in Shallow Waters of Gunashli

Baku/12.06.17/ Turan: SOCAR commissioned a new well in the shallow part of the Gunashli field, the SOCAR press service said.

Well No. 31 was drilled from offshore platform No. 11. The daily production rate of the well is 16 tons of oil and 110,000 cubic meters of gas.

The drilling of the well was carried out at the request of 28 May oil and gas production department.

The development of the shallow part of the Gunashli field has been underway since 1980. The field provides up to 65% of all oil production of SOCAR. The recoverable reserves in the shallow water of Gunashli are estimated at 60 million tons of oil. -12D-

Rosneft and Super Deep Wells in Kazakhstan

Baku/12.06.17/ Turan: Kazakhstan"s energy minister Kanat Bozumbayev on the sidelines of the ministerial conference held within the framework of Expo-2017 reported that Kazakhstan agreed on the participation of the Russian oil company Rosneft in the project to drill an ultra-deep well in Kazakhstan (the project Eurasia). This is reported by RNS.

On the beginning of the Eurasia project, Kazakhstan announced in October 2012. The authorities of the country then said that six or seven companies want to take part, including those from the US, Russia and China.

The project was launched in 2014. It involves drilling a 15-kilometer well in the region of the Caspian depression and consists of three stages. The first includes the collection and processing of materials from previous years. The second is a "large-scale study", and the third is drilling.

According to local experts, the resource potential of the Caspian region is up to 40 billion tons of conventional fuel. --0-

Ukraine Announced Record Transit of Gas from Russia to EU

Baku/12.06.17/ Turan: The Minister of Energy of the Russian Federation Alexander Novak discussed the situation with the transit of Russian gas through Ukraine in the framework of the meeting in Astana with the Vice-President of the European Commission for Energy Union Maros Sefcovic, the RF Ministry of Energy reported yesterday.

"The parties discussed Russia-EU cooperation in the energy sector, in particular, the current situation with the transit of Russian natural gas through Ukraine. Despite assurances from the Ukrainian side that European consumers will be guaranteed uninterrupted gas supplies, as well as guarantees of non-imposition of arrest on transit volumes, unprecedented pressure from the national authorities of Ukraine continues to be exerted on JSC Gazprom," the message says.

In addition, during the meeting the parties discussed the current situation with the Nord Stream-2, Turkish Stream and Opal gas pipelines.

It should be noted that according to Ukrtransgaz (operator of the Ukrainian gas transportation system), the volume of transit of Russian gas to the EU through Ukraine in January-May 2017 increased to a maximum level in 5 years. "The volume of transit of Russian gas through Ukraine for the 5 months of 2017 increased by 22% compared to the same period of 2008. This is a record volume of transit over the past five years: it is almost 9 Bcm more than the average transit volume for January- May in 2013-2016," Ukrtransgaz noted.

From January to May 2017, Gazprom supplied 38.260 Bcm of gas via Ukraine. It is less than half of Gazprom"s deliveries to the EU on all routes for this period.

Table of growth of transit of Russian gas through Ukraine in comparison with similar periods of previous years:

Growth of transit in volumesGrowth of transit in percentageCompared with January-May
6,86 Bcm+21.842016
14.90 Bcm+63.772015
7.71 Bcm+25.252014
6.09 Bcm+18.942013

The gas transport system (GTS) of Ukraine can pump up to 120 Bcm of gas per year, but because of the construction of new gas pipelines transit through Ukraine was reduced to 50-80 Bcm (in 2016 - 80 Bcm).

The GTS brings Ukraine nearly $ 2 billion a year. After the commissioning of the Nord Stream-2 and the completion of the contract on the transit of Russian gas through Ukraine in 2019, the transit of gas can significantly reduce - up to 10-15 Bcm per year at the conclusion of a new contract. -0

USA Delivered First Batch of LNG to Poland and Netherlands

Baku/12.06.17/ Turan: The United States delivered the first consignment of liquefied natural gas (LNG) to Poland and expects that this will have a positive impact on ensuring the security of energy supplies to this country, State Department spokesman Heather Neuert said.

"This LNG cargo arrived in Poland on June 7. This allows reducing energy prices and encouraging the people of Poland to receive more reliable and controlled gas supplies," Neuert noted, as Interfax reported.

According to Neuert, Poland is heavily dependent on gas supplies from Russia. The Polish government receives about 72% of its natural gas from Russia and 26% - from Germany, with the largest part of this German gas originally supplied from Russia.

Poland intends to increase the capacity of the gas terminal to receive 7.5 Bcm per year. At the same time, the country's demand for gas is up to 15 Bcm per year. The contract between Poland and Gazprom is valid until 2022, and the Polish side is not going to renew it.

According to the US Department of Energy, the cost of the imported American LNG is $ 120-210 per 1 thousand cubic meters, while Gazprom put the price at the level of $ 170 per 1,000 cubic meters into the budget.

Note that on June 7, a tanker with liquefied gas from the US also arrived in the Netherlands terminal. American liquefied gas is already exported to Spain, Portugal, Italy, Turkey and Malta.

* In 2016, Gazprom supplied Poland with 11.07 Bcm of gas. Poland imported 1.2 Bcm of gas from Qatar by tankers. -0

Russia Expects Recovery of Oil Demand in Early 2018

Baku/12.06.17/ Turan: Global demand for oil will start recovering in the first quarter of 2018, Russian Energy Minister Alexander Novak said. He expressed this opinion on the sidelines of the ministerial conference on sustainable energy development in Astana within the framework of EXPO 2017.

In addition, the minister called the Russian energy balance one of the most diversified in the world. According to Mr. Novak, it is impossible to solve "climatic problems" only through renewable energy sources.

"The share of non-carbon sources in electricity production in Russia is almost 30% - hydroelectric power, nuclear energy, renewable sources, taking into account gas - almost 80% of the energy produced today is carbon-free or low-carbon sources," RNS quoted the Ministry of Energy.

Alexander Novak added that Russia plans to increase the share of relevant sources in the energy balance to 90% by 2025. -0