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Azerbaijan news roundup

Azerbaijan’s Energy Minister Natig Aliyev told reporters last week that Azerbaijan is feeling no crisis from low oil prices, and recent announcements in the sector seem to back that up – oil exports are up in the last few months, and big investment from state oil company SOCAR has been announced for projects in the country in 2015. Meanwhile, oil and gas could soon not be the only sources of energy coming from Azerbaijan’s offshore fields, with an interesting announcement for the renewable sector this week. Here is our recap of what’s been happening in Azerbaijani oil and gas.

 

SOCAR to spend $950 million in Azerbaijan this year

SOCAR’s vice-president Suleyman Gasimov announced this week that the national oil company will spend around 1 billion manat ($950 million) on projects in Azerbaijan in 2015. Areas set to receive the cash include gasification of rural areas, pipe-laying work, well drilling, and construction of platforms in the fields operated by the company.

Announcing the measures, Gasimov stressed the importance to SOCAR of keeping oil and gas production at a steady level this year.

 

PSA between BP and SOCAR ratified by Azerbaijan’s parliament

Azerbaijan’s parliament has ratified a production sharing agreement between SOCAR and BP that was signed last December to cover coastal offshore exploration in the Caspian Sea.

The contract, which covers a 23-year period, will lead to exploration, field development and production along the southern portion of the Absheron Peninsula. This new acreage will add to BP’s interest in Azerbaijan, where is already operates the Azeri-Chirag Gunashli field, the huge Shah Deniz field, and three major pipelines.

 

Azeri oil exports rise

Oil exports from Azerbaijan in the first quarter of 2015 are 4% up on the same period last year, according to statistics from the country’s State Customs Committee – Increasing to 8.4 million tonnes from the 8.01 million tonnes sold in 2014. The breakdown by month was 2.4 million tonnes exported in January, 2.1 million tonnes in February and 1.9 million tonnes in March, sold at an average price of around $55 per barrel.

In other news, Azerbaijan’s dependence on oil exports is reducing – the same figures show that the share of crude oil in Azerbaijan’s total first quarter 2015 exports was 77.72%, a notable reduction from the 84.32% it made up last year.

 

World first for Azerbaijan in renewable energy

Azerbaijan could be the site of a world first in renewable technology – the first ever wind farm within an offshore oil production area is set to be built in the Caspian Sea, the Azerbaijani media reported on 16 April.

Akim Badalov, chairman of the State Agency for Renewable and Alternative Energy Sources, told journalists that the 450 million manat ($428 million) project will soon be submitted to Azerbaijan’s Cabinet of Ministers for approval, with construction scheduled to last until 2017. Badalov also revealed that the project, which would see turbines built off the Pirallahi Island off the coast of Baku, has already piqued the interest of Chinese, German and Saudi investors.


Related Events

Event30 May

Caspian Oil & Ga..

30-31 May, 2019
AZERBAIJAN

BAKU, AZERBAIJAN
Venue: BAKU EXPO CENTRE

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