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Energy news
Bulletine Energy 

2017 June 19 ( Monday )  10:28:19
Print version

93% of Azerbaijani Exports Fell on Oil and Gas Products in Q1

Baku/19.06.17/ Turan: Current account surplus of Azerbaijan's balance of payments for the first quarter of 2017 amounted to $ 380.2 million, the Central Bank of Azerbaijan reported.

It should be noted that the current account deficit of Azerbaijan's balance of payments for the first quarter of 2016 was $ 432.1 million.

According to the balance of payments, the surplus for the oil and gas sector for the first quarter of 2017 was $ 1.5 billion, while in the non-oil sector the deficit was $ 1.1 billion.

The main economic indicators of Azerbaijan (in thousand $):

NameQ1, 2017In 2016
Average cost of oil$51/ barrel$42/ barrel
Foreign trade turnover5,221,62522,214,687
Including: oil and gas sector3,302,285 (92.87)12,050,387 (91.22%)
Non-oil sector253,4641,160,124
Including: oil and gas sector273,534 (16.42%)2,328,698 (25.86%)
Non-oil sector1,392,3426,675,478
Direct investments abroad531,5162,573,601
Including: in oil and gas sector453,2352,035,155
Non-oil sector78,281538,446
Oil and gas bonuses received7852
Repatriation of investments633,0952,810,809

In January-March of this year, within the framework of the Shah Deniz-1 project, a bonus of $ 78 million was received.

As Turan IA was explained in the company BP-Azerbaijan (operator of the project), this bonus was presented to the Azerbaijani side on the basis of a special PSA point. The fact is that if "the contractor for the budget year extracts more than the planned targets approved by the Operating Committee, then a bonus is earned on the super profit." In 2016, the extraction plan was about 10.1 bcm, although actual production amounted to 10.7 bcm.

According to the CBA, in the first quarter of 2017 the volume of foreign trade turnover amounted to $ 5.2 billion and Azerbaijan had a surplus in foreign trade at $ 1.9 billion.

It should be noted that the direct export of oil amounted to $ 2.8 billion (77.78%) and the direct export of oil products was $ 124.5 million (3.45%).

In the structure of imports, which amounted to $ 1.665 billion, consumer goods accounted for $ 864 million.

In January-March 2016, foreign direct investments in the Azerbaijani economy also amounted to $ 1.6 billion. At the same time, 80.9% of foreign direct investment for the reporting period was in the oil and gas sector.

In the non-oil sector, the volume of foreign direct investment for the first quarter of 2017 was $ 310.3 million (an increase of 31.1%), and the specific weight was 19.1%.

According to the CBA, in January-March of this year, Azerbaijani companies carried out direct investments abroad in the amount of $ 531.5 million (31% decline), including $ 453.2 million in the oil and gas sector (a decline of 18.9%) and $ 78.3 million in other sectors (a decline of 2.7 times).

The direct investments of Azerbaijan abroad in the oil and gas sector are mainly those where SOCAR participates: the TANAP and TAP gas pipelines, as well as the Georgian section of the South Caucasus Gas Pipeline project, the Star refinery (Turkey), the petrochemical complex Petkim (Turkey), the port Terminal Petlim (Izmir, Turkey), expansion of the network of gas stations in Romania and Ukraine, projects for the sale of oil products and natural gas in Georgia, the project of electricity supply in Malta, etc. -12A-

SOCAR Starts Drilling New Well in Caspian Sea

Baku/19.06.17/ Turan: SOCAR started drilling a new well at the Neft Dashlari (Oil Rocks) deposit, the company's website said.

Drilling of well No. 2623 with a design depth of 1,820 meters is carried out from the offshore platform No. 620A.

According to forecasts of geologists, the expected daily production rate of this well will be 10 tons of oil and 1 thousand cubic meters of gas.

The deposit of Neft Dashlari has been under development since 1952. -12D

SOCAR Reduced Gas Production by 7% in January-May

Baku/19.06.17/ Turan: SOCAR produced 2,465.6 mcm of gas in January-May of 2017, which is 7% less than the same period last year.

According to SOCAR, in May the company produced 508.1 mcm of gas.

In general, in January-May of this year, Azerbaijan produced 11,724.9 mcm of gas (a decline of 6%), including 2,462.7 mcm in May.

SOCAR produced 6,266.7 mcm of gas in 2016. -0

SOCAR Cut Oil Production by 2% in January-May

Baku/19.06.17/ Turan: SOCAR produced 3 million 96.1 thousand tons of oil in January-May of 2017, which is by 2.1% lower than the same period of last year.

As reported by SOCAR, in general, oil production in Azerbaijan in January-May 2017 amounted to 15 million 934.2 thousand tons (a decline of 9.2%).

In May of this year, oil production by SOCAR amounted to 636.9 thousand tons. In May, Azerbaijan produced 3 million 291.9 thousand tons of oil.

In 2016, oil production by SOCAR amounted to 7 million 521 thousand tons. -0

Bulgaria Wants to Receive Three Bcm of Gas from Shah Deniz-2

Baku/19.06.17/ Turan: The Bulgarian company Bulgartransgas starts negotiations with SOCAR on deliveries of Azerbaijani gas to Bulgaria for the gas hub Balkans, Bulgarian media reported with reference to Deputy Energy Minister Zhecho Stankov.

Bulgartransgas starts negotiations with SOCAR on the volume of gas supplies to the gas hub Balkan. Everything is at the very beginning now. Bulgartransgas is negotiating on the free gas volumes that will be produced within the Stage-2 development of the Shah Deniz field. This is about 3 bcm," Stankov said.

Bulgaria will receive Azerbaijani gas from Greece via the Greece-Bulgaria interconnection (IGB).

At the same time Bulgarian media referring to the executive director of the project company ICGB AD (project operator) Theodora Georgieva report that the work on the implementation of the IGB project is on schedule. The project cost is estimated at about 240 million euros.

According to her, all the procedures for acquiring land in the country are completed and in the third quarter of 2017 it is expected to issue a permit for the construction of the gas pipeline. The permit for the construction of IGB in Greece will be given in the IV quarter.

As reported, in accordance with the contract for the supply of natural gas, signed between Bulgargaz and SOCAR, from 2020 Bulgaria will receive 1 bcm of natural gas from the Shah Deniz field within the framework of Stage 2 of its development. -0

TAP on Possibility of Macedonia Joining Project

Baku/19.06.17/ Turan: All the interested parties can apply to purchase the available capacity of the Trans Adriatic Pipeline (TAP) in accordance with the rules approved by the national regulating authorities of Greece, Albania and Italy, over the territory of which the gas pipeline runs, said the head of the communications department of the TAP Consortium Lisa Givert.

Earlier, General Director of Macedonian Energy Resources Krste Miladinov said Macedonia was interested in joining the project.

The General Director said the relevant request was sent to the office of the TAP consortium in Greece, but the final answer has not yet been received. -0-