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Energy news
Bulletine Energy 

2017 July 24 ( Monday )  11:39:12
Print version

The extraction at ACG is rapidly declining, but incomes are rising

Baku / 24.07.17 / Turan: In the first half of 2017, despite the decline in oil production at the offshore block of the Azeri-Chirag-Gunashli (ACG) fields by 11.2%, Azerbaijan's revenues from profitable oil sales increased by 34.7% %.

According to the State Oil Fund of the Azerbaijan Republic (SOFAZ), for the first half of 2017 from the sale of profitable oil from ACG were received $3106 million. In the same period of last year, the Fund's revenues from ACG amounted to $ 2 billion 305 million. Thus, for the reporting period 2017, the volume of these revenues increased by 34.7%.

Turan notes that in the first half-year the international consortium (operator BP) produed in the ACG 16.05 million tons of oil. This year, the volume of production from the ACG almost collapsed - the decline for the year was 1.79 million tons.

Then at the expense of what has Azerbaijan succeeded in increasing its profit from ACG by more than a third?

It can be explained by two factors: first, oil prices rose by more than 30%. Secondly, the total costs of the ACG project decreased. "In general, from 2001 to July 1, 2017 from the sale of Azerbaijan's profitable oil from the ACG block to SOFAR received $ 125 billion 215 million," the fund noted.

* In 2016, SOFAZ's revenues from the sale of profitable oil with ACG amounted to $ 5.1 billion. --12B--

The construction of the TANAP gas pipeline fulfilled by 77%

Baku / 24.07.17 / Turan: To date, the construction of the TANAP gas pipeline has been fulfilled by 77.3%. Gas supplies for TANAP for Turkey will begin in the second half of 2018, stated the head of SOCAR Rovnag Abdullayev for the Turkish media.

According to him, the total cost of the TANAP project is estimated at $ 8.5 billion. He noted that this project, implemented with the support of the Turkish government, will be completed ahead of schedule and with great savings. The initial cost of TANAP was estimated at $ 11.8 billion.

The 1,850 km long TANAP gas pipeline is designed to transport Azerbaijani gas within the Shah Deniz-2 project from the Georgian-Turkish border to the western borders of Turkey.

The laying of the foundation of the TANAP gas pipeline took place on March 17, 2015 in the Turkish in the province of Kars. In the TANAP project, 30% belongs to Turkish BOTAS, 58% to SOCAR and 12% to British BP. -0--

SOCAR expects to create new petrochemical production in Turkey

Baku / 24.07.17 / Turan: SOCAR expects to implement the project of creating a new petrochemical production in Turkey until 2023, the Turkish newspaper Dunya reports with reference to the head of SOCAR Rovnag Abdullayev.

"After the completion of the STAR refinery construction project, we plan to launch a new petrochemical project in Turkey. We have a good vision about the peninsula of Aliaga and we have already submitted to the government of Turkey projects to create a new industrial zone here. Now we are making every effort to have time to implement a new petrochemical project in Turkey until 2023, "Abdullayev said.

According to him, Turkey's current deficit in petrochemical products is $ 11.5 billion, and the implementation of new projects will reduce this figure to $ 3 billion.

The head of SOCAR also said that at present the construction of the STAR refinery completed by 90%. "The plant will start production in September 2018, or even earlier," the head of SOCAR said.

Earlier, the head of the SOCAR Investment Department Vagif Aliyev informed that SOCAR plans to invest in a new petrochemical production on the Petkim peninsula. The new enterprise may become the second Petkim, the investment in its creation is estimated at about $ 3 billion. -0--

Network of filling stations by Azpetrol in Azerbaijan reached 88

Baku / 24.07.17 / Turan: Private company "Azpetrol" is expanding the network of filling stations in Azerbaijan, the company said. "Azpetrol opened a new gas station in Garadagh district of Baku, so the total number of the company's gas stations reached 88. The opening of this filling station is timed to the 20th anniversary of the Azpetrol creation." The first gas station of the company was opened on July 15, 1997 on Moskovsky Prospect Baku, "the message says.

According to Azpetrol, the company will continue to expand its own network of filling stations and plans to open a new filling station in the Siazan region of Azerbaijan by the end of this year.

Azpetrol has been operating since 1997, and currently has the largest network of filling stations in Azerbaijan. -0--

Oil production in Russia in July is 10.9 million barrels per day

Baku / 24.07.17 / Turan: Russia"s Minister of Energy Alexander Novak cited statistics on oil production in July. " Since may we now have a minus 300 thousand barrels to October. Now, 10.947 million barrels per day, "noted "Prime" his answer to the question of the level of oil production in Russia in July.

Oil production in Russia in June 2017 for daily expression remained at the level of May, and amounted to 10.946 million barrels per day. In May, this figure was 10.947 million.

In June OPEC exceeded their own quota for oil production, despite the declared efforts to balancing the market and a reduction in production, together with Russia. Violators - Libya and Nigeria - do not participate in the deal to reduce production, but in practice undermine it. Now OPEC and Russia should make a predictable choice: either to take new steps to reduce the production, or failure to recognize the pact, and gradually withdraw from existing agreements.

* Ministerial Committee to monitor the implementation of the agreement of OPEC countries and a number of states outside this organization (OPEC +) on reduction of oil production as expected at a meeting on July 24, will not recommend to limit the volume of oil production in Libya and Nigeria, reports Bloomberg citing the sources familiar with the situation. -0--

Tukmenistan boosting gas chemical industry

Baku / 24.07.17 / Turan: Turkmenistan plans to build several big gas chemical complexes, a source in the country"s fuel and energy industry said.

Here the matter rests in the production of polyethylene, polypropylene, polyvinyl chloride, monoethylene glycol, dimethyl ether and other chemical products with help of the modern technologies used for extraction of ethane from natural gas, as well as using the methanol to olefin technology for methane recovery and processing.

Moreover, work continues to construct a plant for the production of liquid petroleum products from natural gas (using GTL technology). According to the source, Turkmenistan is ready to study other proposals of foreign investors on investment projects aimed at high-technology processing of natural gas and the production of export-oriented products.

To participate in their implementation, it is considered possible to use several forms of mutually beneficial cooperation: within the framework of the Production Sharing Agreement, within the framework of the service contract - for field development projects and construction of gas chemical plants, as part of joint ventures - for servicing and repairing oil and gas equipment, managing the production process and marketing products. Turkmenistan adopted the laws "On Hydrocarbon Resources", "On Foreign Investments", and on "On Investment Activities." --0--

Gas production in Ukraine in the first half of 2017 increased by 3%

Baku / 24.07.17 / Turan: In the first half of 2017, Ukraine produced 10.298 billion cubic meters of gas, which is 292.1 million cubic meters, or 2.9% more than in January-June 2016. This is evidenced by the data of PJSC "Ukrtransgaz" (100% "daughter" of Naftogaz of Ukraine).

Gas production by Ukrainian enterprises is mainly supplied to industrial consumers.

It should be noted that Gazprom no longer supplies gas to Ukraine.

The extraction of natural gas in Ukraine in 2016 increased by 0.5% (by 91.1 million cubic meters) compared to 2015 - up to 19 billion 987.1 million cubic meters. In 2016, the consumption of natural gas in Ukraine in comparison with 2015 decreased by 0.6 billion cubic meters: from 33.8 to 33.2 billion cubic meters, of which the industry consumed 10 billion cubic meters. 40.000 industrial consumers buy gas from 250 traders, of which almost 50 are gas importers and the same number of mining companies. At the same time, Naftogaz of Ukraine is rapidly losing market share. Today, more than a third of the volume of gas for industry is the gas of Ukrainian private extraction.

Table of gas production in Ukraine in the first half-year (in billion cubic meters)