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Energy news
Bulletine Energy 

2017 August 28 ( Monday )  15:20:37
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Moody`s: Financial Line between SOFAZ, State Budget and SOCAR Blurred

Baku/28.08.17/ Turan: Restructuring of external obligations of the International Bank of Azerbaijan (IBA) did not significantly affect the liquidity of SOCAR (State Oil Company of Azerbaijan). This is stated in the message of the international rating agency Moody`s Investors Service.

The agency notes that SOCAR also stores significant cash and deposits with Pasha Bank and Capital Bank.

Moody`s assumes that the company's cash reserves will remain fully accessible, as they are one of the main sources of financing of the company's investments and debt servicing and serve as a basis for assessing the good profile of the liquidity of SOCAR.

Moody`s notes that Azerbaijan consistently provides support to SOCAR by adjusting regulated prices, direct injections into the capital, financing key investment projects and providing loans through the Ministry of Finance.

"The line between SOFAZ, the state budget and SOCAR is blurred. SOCAR transfers revenues from the sale of profitable oil to SOFAZ (annual transfers amount to about 8-9 billion manats) and receives transfers from SOFAZ for capital expenditures and borrowing from the Ministry of Finance.

During 2016, the Azerbaijani government invested 921 million manats in the authorized capital of SOCAR, which compensated for the company's inflow into the authorized capital of the South Caucasus Gas Pipeline and the Southern Gas Corridor in that period. As of the end of June 2017, the company's debt to the Ministry of Finance was about 900 million manats.

"Such interrelations between the state and SOCAR underscore the company's strategic importance for Azerbaijan as the largest employer, taxpayer and exporter," the report says. -0-

State Statistics Committee of Azerbaijan Points to Sharp Growth of Volumes of Imported Gas

Baku/28.08.17/ Turan: Azerbaijan imported 403 million 679.75 thousand cubic meters of gas in the first half of 2017. This was reported in the special bulletin of the State Statistics Committee of Azerbaijan, Foreign Economic Relations of the AR for January-June 20017.

"The cost of imported gas was $ 56 million 515.61 thousand. The whole volume of gas was imported from Azerbaijan from Iran," the bulletin says.

The document indicates that in the first half of 2016 95 million 648.92 thousand cubic meters of gas was imported to Azerbaijan for $ 19 million 129.78 thousand. Thus, in January-June 2017, the volume of gas imports to Azerbaijan increased in quantitative terms by 4.2 times.

In 2016, the volume of imported gas to the country amounted to 232 million 274.72 thousand cubic meters for $ 38 million 257.4. At the same time, the import of Iranian gas accounted for 136 million 625.8 thousand cubic meters, and the import of gas from Kazakhstan was 95 million 648.92 thousand cubic meters, the State Statistics Committee said.

* Note that these figures in the State Statistics Committee"s bulletins differ from the monthly data of the statistical department, since later corrections and clarifications are made in the bulletins. -12B

Azerbaijan Imports AZ-98 Gasoline from Russia and Belarus

Baku/28.08.17/ Turan: In the first half of the year Azerbaijan imported gas Premium Euro-95 in the volume of 22,667.57 tons for $ 14 million 945.48 thousand. This was in the monthly report of the State Customs Committee of Azerbaijan.

Note that in the first half of 2016, the import of this product to Azerbaijan amounted to 15,244.39 tons for $ 8 million 526.4 thousand. Thus, in January-June 2017, the import of gasoline AI-95 into the country in quantitative terms increased by 48.7% and in value terms - 1.7 times.

The above products were imported from Bulgaria and Romania.

In addition, during the reporting period, motor gasoline of the brand Super Euro-98 was imported to Azerbaijan in the volume of 816.43 tons for the amount of $ 539.53 thousand. The growth in comparison with the same period in 2016 was 2.7 times in quantitative terms and 3.1 times in value terms.

This product was imported from Russia and Belarus.

In 2016, 44,231.38 tons of Premium Euro-95 gasoline and 635.17 tons of Super Euro-98 gasoline were imported to Azerbaijan.

* Import of motor gasoline brands Premium Euro-95 and Super Euro-98 to Azerbaijan started on April 1, 2014.

Oil Production in Muradkhanli Field to Be Increased to 220 B / D

Baku/28.08.17/ Turan: A new generation submerged pump from Schlumberger was installed in the well M-45 of the Muradkhanly land oilfield.

Information about this was spread by the Canadian company Zenith Energy Ltd., operator of the Muradkhanli-Jafarli-Zardab block of deposits.

Daily oil production from the well is 49 barrels now. Zenith is confident that the volume of production from the well will increase. This is the first equipment of this type installed by the company on the block in Azerbaijan.

The company has identified 11 wells for the installation of electric submersible pumps of a new generation. The new equipment was ordered from Schlumberger and Baker Hughes in accordance with the specifics of each well.

According to the calculations of the operating team of Zenith, as a result of the installation of the latest technology pumps in 11 wells, the production will increase to 219 barrels per day.

At the same time, the company is evaluating other wells located on the contract area. -12D-

Large Gas Field Discovered in North of China

Baku/28.08.17/ Turan: In the province of Shanxi, located in the north of China, a large gas field has been discovered, with the reserves estimated at 545.6 bcm, Xinhua News Agency reported.

Shanxi is one of the main producers of coal in the country. The region ranks second in the PRC in coal reserves.

In addition, the province has mine and shale gas reserves estimated at 12.7 trillion cubic meters. -0-