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Energy news
Bulletine Energy 

2017 July 28 ( Friday )  11:11:44
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EBRD Approves Loan for Shah Deniz-2

Baku/28.07.17/ Turan: The European Bank for Reconstruction and Development (EBRD) will allocate up to $ 100 million to expand the financing of the share of LUKOIL Overseas Shah Deniz Ltd in the Shah Deniz-2 project, the bank reports.

As noted in the message, the Board of Directors of the bank approved the allocation of this loan to LUKOIL.

This loan will be used for the same purposes as the main loan - construction of two gas offshore platforms, drilling of 26 subsea wells, laying 500 kilometers of pipes under the water and expanding the Sangachal terminal.

In 2015, the EBRD, with the mediation of the Asian Development Bank (ADB) and the Black Sea Trade and Development Bank, allocated LUKOIL Overseas Shah Deniz Ltd (one of the subsidiaries of LUKOIL) a loan of $ 560 million for a period of 12 years. The remaining $ 440 million will be provided by a bank syndicate for a period of 10 years through the intermediation of the EBRD and ADB through the B-loan program. The participants of the syndication are the French bank Societe Generale, the Bank of China, the Dutch bank ING and the Italian bank Uni Credit.

The total amount of financing of LUKOIL within the framework of equity participation in the Shah Deniz-2 project is $ 2.5 billion.

LUKOIL owns a 10% stake in the Shah Deniz field development project. -0-

TAP Announced Updated Data on Construction Progress

Baku/28.07.17/ Turan: To date, more than 80 percent of steel pipes to be used for the construction of the Trans Adriatic Pipeline (TAP) have been delivered to Greece, Albania and Italy, the TAP consortium's press service said.

A total of 55,000 steel pipes will be used for the construction of TAP.

Two days ago, TAP reported that almost 40 percent of steel pipes in Greece and Albania (303 kilometers out of 765 kilometers) were laid in the ground.

Shareholders of the TAP are: BP - 20 percent, SOCAR - 20 percent, Snam - 20 percent, Fluxys - 19 percent, Enagás - 16 percent, and Axpo - 5 percent. -0-

Gas Production in Yamal Increased by 15% in H1, 2017

Baku/28.07.17/ Turan: Gas production in the Yamalo-Nenets Autonomous District (YaNAD) increased by 14.9% for the first half of 2017 and reached 277.4 billion m3. This was reported by the press service of the Governor of YaNAD.

The largest volume of gas produced falls on Gazprom's daughters, whose total production for the first half of 2017 amounted to 210.47 bcm of gas, which accounted for 75.9% of all gas production in YaNAD.

Gas production in YaNAD was conducted by 35 enterprises in 94 fields.

The share of YaNAD in the proven Russian natural gas reserves is more than 70%, and 18% in the oil and gas condensate reserves.

In the first half of 2017, 15.2 million tons of oil was produced in YaNAD, which is 25% more than in January-June 2016.

The current total explored reserves in Yamal are 44.5 trillion cubic meters of gas, almost 5 billion tons of oil and about 2 billion tons of gas condensate.

There are 236 oil and gas fields on the territory of the district. -0-

Iran Plans to Abandon Turkmen Gas

Baku/28.07.17/ Turan: The commissioning of the Damgan-Neka gas main will allow Iran to completely stop the import of natural gas from Turkmenistan.

This was announced on July 25 by the Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araghi.

According to him, Iran, nevertheless, will continue gas cooperation with Turkmenistan in order to strengthen its relations with the neighboring countries.

He said that at the beginning of August, the Damgan-Kiasar-Sari-Neka gas main with a capacity of 35 million m3 / day will start gas supply to six northern provinces of Iran (Semnan, Golestan, Mazandaran, North Khorasan, Khorasan Razavi, and South Khorasan).

The gas main 175 km in length with a diameter of 42 inches originates from the town of Damgan in the province of Semnan and ends in the Caspian town of Neka.

The cost of the project is $ 153 million, and the cost of 1 km of the gas main is about $ 0.87 million.

"If Turkmenistan decides to stop gas supplies, then Iran will replace Turkmen gas without problems in the northern provinces," Araghi said. He added that in the severe winter of 2016-2017, Turkmenistan stopped supplying gas to Iran because of outstanding debts.

Then the head of the Iranian Ministry of Oil B. Zangeneh signed an order on the urgent completion of the construction of the gas main in order to end dependence on Turkmenistan.

There are 2 more projects to increase gas supplies to the Northern provinces:

- The pipeline from Meiami in the province of Semnam to the province of Golestan,

- the gas main Iran Gas 3 to the province of Gilan.

Iran has been importing natural gas from Turkmenistan since 1997 to meet the needs in the north of the country, the most remote from the gas resources in the south.

From Turkmenistan to Iran, there are two main gas pipelines, with a total throughput capacity of 20 bcm. However, Iran has never received more than 8 bcm of Turkmen gas. Between Turkmenistan and Iran, the dispute over gas arose because the official Tehran actually did not pay for the gas purchased after the Western sanctions were introduced against Iran. -12B-

Tehran Announces Negotiations with Foreign Companies to Develop Fields in Caspian

Baku/28.07.17/ Turan: Iran is negotiating with Russian, Norwegian and Chinese companies to explore and develop oil fields on the Caspian shelf.

On July 26, 2017 IRNA reported with reference to the director of Khazar Exploration and Production Co (KEPCO) on international affairs Ramin Khodafarin.

According to him, several meetings were held with representatives of leading drilling and exploration companies from Russia, Norway and China this month. During these meetings, the possibility of cooperation to develop oil fields in the Caspian Sea was discussed.

In recent years, Iran has focused on the development of oil and gas fields in the Persian Gulf. But after the lifting of international sanctions against Iran, an opportunity was opened to attract foreign companies to deep-sea drilling in the Caspian Sea. This allowed Iran to focus on the development of oil fields in the Caspian Sea.

In KEPCO, an investment committee was created, which will have to engage in capital and technology to fulfill plans to develop fields in the Caspian Sea.

Earlier, Iran did not exclude the possibility of signing an agreement with LUKOIL to study oil fields in the southern part of the Caspian Sea. -0-

Net Profit of Total in H1 of 2017 Increased by 1/3

Baku/28.07.17/ Turan: Net profit of Total in the first half of 2017 increased by 28.54% compared to the first half of 2016 and amounted to $ 4.806 billion, Total reported.

In the II quarter of 2017, the company's net profit fell by 4.3%, to $ 2,027 billion.

The company"s income increased by 7.26% to $ 39.915 billion in the first half of 2017. The company"s hydrocarbon production increased by 3% - to 2.534 million boe / day.

Following the results of 2017, Total plans to increase the production of hydrocarbons by more than 4%.

Recall that in 2016, Total's net profit increased by 22% to $ 6,196 billion. At the same time, the company's revenue decreased by 9%, to $ 149.743 billion. -0-

Shell: Oil Needed Regardless of Electric Vehicles

Baku/28.07.17/ Turan: Oil demand continues to grow, and this trend will not change in the coming years, the chief executive of Royal Dutch Shell, Ben van Burden said in an interview with CNBC.

"Oil prices are always very difficult to predict. The oil market is not very transparent, and it is not easy to predict how it will behave in the future. We see that now there is a certain obsession with oil prices, and a lot of money is concentrated in the exchange trade in oil. In my opinion, the current situation does not reflect the fundamental factors: now prices are more dependent on investor sentiment towards the oil market," the Shell chief said.

"Now there are a lot of initiatives related to the promotion of electric vehicles, and their number will continue to grow. However, even if all developed economies switch 100% to electric cars, this will not be enough: the demand for hydrocarbons will continue to grow in other segments - sea transport, aviation, and so on," he explained.

According to him, even in the most optimistic scenario of developing alternative energy sources and introducing new technologies, the demand for oil will not stop growing until the end of the 2020s and the beginning of the 2030s.

"Even if oil consumption ceases to increase, oil itself as a source of energy will not "go out of fashion". By many estimates, the supply of oil will decline faster than demand. The development of new oil and gas projects will be necessary for many decades," the head of Shell said. -0-