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Energy news
Bulletine Energy 

2017 July 07 ( Friday )  10:39:28
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Gas and Fuel Oil Sold below Cost in Azerbaijan - SOCAR

Baku/07.07.17/ Turan: SOCAR will receive 250 million manats this year as a subsidy from the Azerbaijani government. This is stated in the report on financial activities of SOCAR for 2016.

According to the amended state budget approved by the Milli Majlis (Azerbaijani Parliament) on June 30, 2017, SOCAR will receive a state subsidy of 250 million manats in compensation for losses incurred from the sale of natural gas and fuel oil to meet local demand in the country at a price below cost.

Earlier SOCAR Vice-President for Economic Affairs Suleyman Gasimov stated that SOCAR incurs losses at current gas prices in the domestic market, since gas is purchased for domestic market by two items for the American dollar: 1) from the Shah Deniz field (more than 30% of the market needs - ed.); 2) imported gas (about 5%).

SOCAR also supplies fuel oil for the needs of power engineers. Since August 2015, Azerenergy OJSC has started using fuel oil as a fuel for generating electricity. Beginning from late 2000, Azerbaijani power plants worked only on natural gas. --12B-

Methanol Plant Cost SOCAR $ 500 Million

Baku/07.07.17/ Turan: The cost of the bankrupt methanol plant AzMeCo purchased last year by the State Oil Company of Azerbaijan amounted to 810 million manats or at the average rate of 2016 $ 506 million, according to the SOCAR financial report for 2016.

According to the report, an advance payment of AZN 394 million to the seller was made by the State Oil Company. At the end of the year, the control over the plant was not transferred to the State Oil Company.

Note that in November 2016 SOCAR Methanol was created. For five months of this year the plant produced more than 70 thousand tons of methanol.

* The AzMeCo plant was a private enterprise. The plant was built in 2009-2013 due to loans from the EBRD ($ 150 million) and the International Bank of Azerbaijan (the exact amount is not known). In May 2016, the owner of the plant, Piriyev, was arrested for a month for the late refund of IBA loans. The enterprise actually did not work last year and was declared bankrupt by the government. The plant was then transferred to the management of Agrarkredit, and later it was decided to be sold to SOCAR.

SOCAR Increases Controlling Interest in Georgian "Daughter" to 67.34%

Baku/07.07.17/ Turan: The State Oil Company of Azerbaijan has increased its share in the Georgian "daughter," SOCAR Energy Georgia LLC to 67.34%. This is stated in the financial report of SOCAR for 2016.

"On May 29, 2017, SOCAR acquired a 16.34% stake in SOCAR Energy Georgia for 58 million manats ($ 34 million). As a result of this transaction, the controlling stake of the State Oil Company of Azerbaijan in SOCAR Energy Georgia increased from 51% to 67.34%," the agency"s interlocutor noted.

SOCAR Energy Georgia LLC was established in 2006. The shareholders of the company are SOCAR, Intersun Holding FZCO (parent company of Azersun Holding) and Heritage General Trading FZE.

* In Georgia, SOCAR Energy Georgia owns the oil terminal of the Black Sea Terminal, SOCAR Georgia Petroleum (77 gas stations), SOCAR Georgia Gas (gas distribution company), and SOCAR Georgia Security (established as an independent security company that provides security services to objects of SOCAR in Georgia).

SOCAR Commissions New Well in Shallow Waters of Gunashli

Baku/07.07.17/ Turan: SOCAR commissioned a new well in the shallow part of the Gunashli field, the SOCAR press service said.

Well No. 355 was drilled from the sea platform No. 14. The daily production rate of the well is 107 tons of oil and 27.6 thousand cubic meters of gas.

The well was drilled at the request of the Oil and Gas Production Department (OGPD) named after 28 May.

The development of the shallow part of the Gunashli field has been under way since 1980.

The field provides up to 65% of the entire oil production of SOCAR. --12D

SOCAR Increases Drilling Volumes by 38.5% in H1 of 2017

Baku/07.07.17/ Turan: The drilling departments of SOCAR in the first half of 2017 increased drilling volumes by 38.5% to 73,789 meters compared to the same period of last year.

As the press service of SOCAR informs, 68,007 meters were for production drilling, and 5,782 meters were for exploration drilling.

In the first half of this year, 38 new wells were commissioned by the drilling departments of SOCAR, including 8 in June.

In 2016, SOCAR drilling volumes were 105,245 meters. --12D

Azerenergy Increased Its Electricity Production by 1% in H1 of 2017

Baku/07.07.17/ Turan: Azerenergy OJSC (state monopolist for electricity production in Azerbaijan) produced 10 billion 953 million kW / h of electric power in the first half of 2017.

As the press service of the company reports, in the first half of 2016, Azerenergy generated 10.8 billion kW / h of electricity (in the first half of 2015 - 11.5 billion kW / h). Thus, in January-June of 2017, the output growth was 1.2%.

In June of this year, Azerenergy generated 1 billion 537 million kW / h of electricity. In June 2016 this figure was 1.6 billion kW / h.

It should be noted that in 2016 Azerenergy produced 22.6 billion kW / h of electricity. --12D-

Data on Reduction of Oil Reserves in US Did Not Help Price Increase

Baku/07.07.17/ Turan: Yesterday, oil boosted its recovery on the auction due to significantly exceeded expectations about the decline in commercial fuel reserves in the US.

According to the US Department of Energy, commodity stocks of oil decreased by 6.3 million barrels to 502.9 million barrels last week. The cumulative fall in oil and petroleum products (13.4 million barrels) was the highest since September.

Experts on average expected a decrease in oil reserves by 2 million barrels, and gasoline - by 1.8 million barrels.

The price of September futures for Brent crude oil on London Stock Exchange rose by $ 1.31 or 2.74% to $ 49.10 per barrel by 19:00 and then decreased to $ 47.90.

On Wednesday, oil finished trading, falling by about 4% on fears of increased production in OPEC.

Meanwhile, oil production in the US for the week that ended on June 30 rose to 9.338 million barrels per day (b / d) from 9.250 million b / d a ​​week earlier. In annual terms, the recovery was 910 million b / d or 10.8%. --0-