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Energy news
Bulletine Energy 

2017 July 31 ( Monday )  16:46:02
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Muradkhanli Block First to Start Production This Year

Baku/31.07.17/ Turan: Production at the M-66 well of Muradkhanli field has been resumed. This was spread by the Canadian company Zenith Energy Ltd., operator of the Muradkhanli-Jafarli-Zardab block of fields.

Agency Turan notes that for the first half of 2017 oil production was not carried out in this block.

Well No. M-66 was drilled back in 1978. In the peak period, the well productivity was about 284 barrels / day. In 1999 the well was closed.

In 2017 the well was cleaned to a depth of 3,011 meters, using a special installation using nitrogen. Thanks to the procedure, production was resumed and daily production of 15 barrels was achieved. Also, the accumulated oil in the volume of 150 barrels was recovered.

"This operation is carried out within the framework of the Zenith system program to maximize production at wells with low indicators in the area of ​​642.4 sq. m. Then, the Zardab field will be overhauled. Before several wells of this field got filled with sand, more than 500 barrels of oil were mined per day," Zenith Energy said.

On March 16, 2016, SOCAR (20%) and Zenith Aran Oil Company Ltd ("daughter company" of Zenith Energy - 80%) signed a PSA-type contract for the Muradkhanli-Jafarli-Zardab block located 250 km southwest of Baku. The foreign investor proceeded to the development of the block on August 11, 2016. -12B

Gazprom to Lay Foundation of Amur Gas Processing Plant on August 3

Baku/31.07.17/ Turan: Gazprom will hold a solemn event on August 3 at the construction site of the Amur Gas Processing Plant in the Svobodnensky district of the Amur region in Russia.

This is reported by LLC Gazprom Reworking Blagoveshchensk, which is engaged in the construction of the facility.

LLC for this purpose is already preparing a special solemn event.

Gazprom CEO Alexei Miller announced in June: "We will begin laying the foundations of the Amur Gas Processing Plant in August, and we are already building its main infrastructure facilities." The main equipment supplier for the Amur Gas Processing Plant has been selected for cryogenic gas separation to produce helium and valuable components for petrochemicals.

Amur Gas Processing Plant is one of the largest gas processing plants in the world. Its capacity will be 42 bcm of gas. The GPP will be built on the border with the PRC to extract valuable fractions from gas supplied through the Siberian Power gas pipeline to China. -0-

Moody's: Kazakhstan Adapted to Low Oil Prices

Baku/31.07.17/ Turan: The international rating agency Moody's confirmed Kazakhstan's sovereign rating at Baa3 and raised the outlook for the country's future rating from negative to stable.

The agency experts explain the increase in the forecast of the country rating by the fact that, in their opinion, the economy, the budget and the banking system of the republic have gradually adapted to a structural decline in oil prices.

"Moody's positively assessed the recapitalization of the banking system, launched in the country, within which the authorities are ready to support the banks for $ 1.5 billion," the agency notes.

Moody's experts focus on state assistance to commercial banks, because, in their view, the shock of the global financial crisis of 2008-2009 for Kazakhstan's economy was reinforced by the fact that "several Kazakhstan banks defaulted and were nationalized."

Analysts of the agency believe that in the coming years, Kazakhstan will be able to stabilize the assets of the National Fund - a buffer to save the economy in the event of a fall in prices - at $ 60 billion. -0-

Russia: American Business Wants to Control Gas Trade between Russia and Europe

Baku/31.07.17/Turan: American business wants to enter the gas transportation system of Ukraine and this explains a number of norms of the US sanctions law, an informed source in the energy industry told the Russian agency Prime.

"According to available information, there are American companies, American business, which itself has in view to enter the GTS of Ukraine and actually sit between the supplier, that is, Russia, and the consumer, that is, the countries of Western Europe, and gain additional levers of influence," he said.

According to him, the Ukrainian gas transportation system is subject to fragmentation, including privatization and entry of external investors. "But this GTS is a value, provided that the GTS serves as a transit bridge between the Russian Federation and the EU countries. If we build alternative ways of supplying gas to Western Europe, in fact the Ukrainian GTS will become a set of rusty pipes," he concluded.

* On July 27, the US Senate passed a law on sanctions against Russia, Iran and the DPRK.

The bill suggests that Trump can impose sanctions on persons who intend to invest in the construction of Russian export pipelines more than $ 5 million per year or $ 1 million at a time or to provide projects with services, technology, and provide information support. At the same time, the US will continue to oppose the construction of the Nord Stream-2 gas pipeline. -0

Egypt Hopes to Reduce Dependence on LNG Imports

Baku/31.07.17/ Turan: Egypt is expected to produce 6.2 billion cubic feet (bcf) of gas per day by the end of the 2017-2018 fiscal year, the Arab service of CNBC reports with reference to the country's oil minister Tariq al-Mullah.

In Egypt, the new budget year began on July 1, and previously the official Cairo made forecasts for gas production in the country in the amount of about 5 bcf / d by the end of the current calendar year.

According to the minister, production growth will be provided mainly through the development of the gas fields Zohr, Nooros and Atool.

The Zohr field with reserves of about 850 bcf was opened by the Italian Eni on the Egyptian shelf in 2015 and is considered one of the largest found in the last decade in the Mediterranean region.

According to CNBC, currently Eni has completed the creation and configuration of the field infrastructure in order to commence industrial production of fuel at the end of 2017. -0-

Net Profit of Statoil Increased Eightfold for First Half-Year

Baku/31.07.17/ Turan: Net profit of the Norwegian Statoil ASA for the first half of 2017 amounted to $ 2.5 billion, which is 8.1 times more than the same period last year, as follows from the company's report.

The average price of Brent crude oil, according to the company"s estimates, for the reporting period was $ 51.7 per barrel, which is 30% higher than in the first half of 2016.

The volume of production of hydrocarbons by Statoil for the period increased by 3% compared to the same period in 2016, amounting to 2.071 million barrels of oil equivalent per day. -0-

Net Profit of Royal Dutch Shell Grew Threefold for First Half-Year

Baku/31.07.17/ Turan: The net profit of the Anglo-Dutch Royal Dutch Shell in the first half of 2017 increased threefold in annual terms to $ 5.083 billion, as follows from the company's report.

The company's revenue grew by 23.5% to $ 72.131 billion.

Shell's profit in the upstream sector for the first half of the year reached $ 879 million against a loss of $ 2.762 billion. In downstream, profit rose 31.2% to $ 5.018 billion. The sales of petroleum products increased to 6.487 million barrels per day. -0--

Chevron Made Profit of $ 4.1 Billion for First Half-Year

Baku/31.07.17/ Turan: Chevron company for the first half of 2017 received a net profit of $ 4.132 billion against a loss of $ 2.195 billion for the same period last year.

According to the company, the volume of Chevron's production in the reporting period amounted to 2.728 million barrels of oil equivalent per day - an increase of 5.04%. In the Upstream segment (exploration and production), the company's profit was $ 2.37 billion against a loss of $ 3.921 billion; Downstream (processing and marketing) profit was $ 2.112 billion (an increase of 5.4%).

Chevron is the second largest oil and gas company in the US. -0-

OPEC and Non-OPEC to Meet in Abu Dhabi on August 7-8

Baku/31.07.17/Turan: The Technical Committee on monitoring the implementation of the agreement on the reduction of oil production by the OPEC and non-OPEC countries will meet in Abu Dhabi (UAE) on August 7-8, the report said on the OPEC website.

The Technical Committee will consider the problems and difficulties encountered by a number of countries in implementing this agreement, and will also analyze the measures necessary to fulfill the objectives of the agreement to accelerate balancing on the world oil market.

As reported, the ministerial committee on production monitoring, which was held in St. Petersburg earlier this week, stated that the agreement on the reduction of production was fulfilled for the first half of the year by 98%. Saudi Arabia, Azerbaijan and Russia exceeded the agreement, and a number of countries did not fulfill it. -0--

China Needs More Natural Gas

Baku/31.07.17/ Turan: According to the results of January-June 2017, the volume of natural gas consumption in China reached 114.6 bcm. This is 15.2% more than in January-June 2016, the State Committee for Development and Reform of the People's Republic of China said.

The Chinese authorities intend to increase the share of natural gas in the structure of energy consumption in the country to 10% by 2020 and to 15% - by 2030.

Note that in 2015, the consumption of natural gas in China amounted to 191 bcm.

In 2016, China came to the sixth place in the world for the extraction of natural gas. In 2007, the country ranked ninth in this rating. In 2007, China produced 68 bcm of gas. And in 2016 this indicator reached 137 bcm. Over the past ten years, the explored reserves of natural gas in the country increased from 6.1 trillion cubic meters up to 13 trillion cubic meters. -0-