Tag Archives: business

Construction begins on TAPI with Turkmen leadership

DEC. 15 2015 (The Conway Bulletin) – After a decade of talks, Turkmen president Kurbanguly Berdymukhamedov and leaders from Afghanistan, Pakistan and India officially started construction of the TAPI pipeline that, they hope, will pump gas from Central Asia to South Asia by end-2018.

The $10b project is ambitious and fraught with risk. For a start nearly half the 1,800km route crosses Afghanistan where security has worsened over the past couple of years. This week the Asian Development Bank cut funding for a Turkmenistan-Tajikistan rail project that also crossed north Afghanistan because of security concerns.

Still, at the official opening ceremony for the TAPI pipeline in Mary, Turkmenistan, Mr Berdymukhamedov was in an upbeat mood.

“TAPI is designed to become a new effective step towards the formation of the modern architecture of global energy security, a powerful driver of economic and social stability in the Asian region,” media quoted him as saying.

By December 2018, so the plan goes, Turkmenistan should start pumping 33b cubic metres of gas a year to India.

But, as Anupama Sen, senior research fellow at the Oxford Institute for Energy Studies, explained for India, TAPI has always been more of a political, rather than gas supply, project. She said India is increasing coal production to meet power demand as it is cheaper than importing gas.

“India’s negotiations over TAPI have been driven by diplomacy,” she said.

India has been trying for years to bolster its influence in Central Asia where Russia and China are so dominant. It lost out in 2013 on a stake in the Kashagan oil field in the Kazakh sector of the Caspian Sea to China. TAPI now gives it a stake in Central Asia.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Azerbaijan’s SOCAR output falls

DEC. 15 2015 (The Conway Bulletin) – A source at Azerbaijan’s statistic committee told Reuters that SOCAR’s low output for the first 11 months of 2015 had pushed down total oil and gas production in Azerbaijan. Azeri-Chirag- Guneshli, a BP-operated offshore oilfield, also contributed to a contraction in production of 0.5%.

ENDS

(News report from Issue No. 261, published on Dec. 20 2015)

Kazakhstan sells off Batumi terminal

DEC. 8 2015 (The Conway Bulletin) — The oil terminal at the port of Batumi, on Georgia’s Black Sea coast, will be among the companies that Kazakhstan sells off to investors during a privatisation round in 2016 and 2017. In 2008, KazTransOil, a subsidiary of state-owned Kazmunaigas, bought the Batumi oil terminal. Kazakhstan needs to sell off state-owned assets to raise cash.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

8 dead, 26 missing after storm hits Azerbaijani Caspian rigs

DEC. 4 2015 (The Conway Bulletin) – At least eight rig workers died when a storm smashed into an oil and gas platform in the Azerbaijani sector of the Caspian Sea and triggered a gas explosion.

Another 23 people are still missing from Platform No. 10 of the shallow- water Guneshli field, operated by Azerbaijan’s state-owned SOCAR. Three others are also missing from another platform in the Oil Rocks field after being swept overboard.

Rescue workers said there was little chance of finding any survivors. This means that the final death toll will probably hit 34 — the worst dis- aster in the history of Caspian Sea oil and gas production and the deadliest offshore platform accident since 167 people died in the Piper Alpha acci- dent in the North Sea in 1988.

At a press conference in Baku on Wednesday a downcast Khalig Mamedov, SOCAR vice-president , said: “Despite all the efforts, regrettably, no-one has been found. This is the biggest tragedy in SOCAR’s history.”

Media reported that most of the oil workers who died on Platform No.10 were killed in a botched attempt to abandon the platform in one of the lifeboats. Two dozen workers were successfully rescued from the plat- form, though.

As of Thursday, the blaze on Platform No. 10 was still burning.

The accident stunned people in Azerbaijan. Football matches across the country held a minute’s silence. Along the seafront in Baku people silently laid down bunches of roses. Others sobbed, looking out to sea.

The gas explosion at Platform No. 10 cut production at all 28 wells, 24 oil wells and four gas wells, of the shallow-water Guneshli field. Daily output at Guneshli was around 6,500 barrels/day of oil and 400m cubic metres of natural gas per year, Reuters reported.

Importantly for Azerbaijan’s overall oil production, BP said that output at the Azeri-Chirag-Guneshli oil field complex that it manages was untouched by the accident.

Azerbaijan has been struggling to maintain oil output this year. This accident will dent both its safety record and oil production levels.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Afghanistan and Uzbekistan sign power deal

DEC. 10 2015 (The Conway Bulletin) – Afghanistan has signed an electricity supply deal with Uzbekistan which is 10% larger than last year to meet rising demand, a source at the state- owned Uzbekenergo told Russian media. Uzbekistan is an important supplier of electricity to northern Afghanistan.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

SinoHydro builds Armenia road

DEC. 9 2015 (The Conway Bulletin) — Chinese state-owned SinoHydro said it will build a 27.5km section of a north-south road in Armenia for €74m ($81m). Once the full upgrade is finished in 2019, the complete 556km-long road, called the North-South Corridor, will connect the town ofBavra on Armenia’s border with Georgia to Meghri on Armenia’s border with Iran. The total cost of the project is €381m ($417). Various inter-governmental financial institutions and the Armenian government are paying for the project.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Apogee opens in Uzbekistan

DEC. 9 2015 (The Conway Bulletin) — Apogee, a Dubai-based international airport service company, opened an office in the Yuzhny Airport in Tashkent. Apogee focuses on former-Soviet countries, providing various support functions for airports.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Georgia and China strengthen relations

DEC. 10 2015 (The Conway Bulletin) – Georgia and China have agreed to begin free trade talks, an important step in strengthening relations. China has become an important economic player in Georgia. Georgia’s economy minister, Dimitri Kumsishvili, said he wanted to see Georgian wine and other agricultural goods exported to China.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Kazakh Kashagan to restart by end-2016

DEC. 8 2015 (The Conway Bulletin) – Kazakh economy minister Yerbolat Dossayev said Kashagan would restart production by end-2016. His statement reinforces previous statements from the Kazakh government which have been more optimistic on the Caspian Sea oil field’s start date than Western companies.

ENDS

(News report from Issue No. 260, published on Dec. 11 2015)

Kyrgyzstan CBank changes rules

DEC. 9 2015 (The Conway Bulletin) – Kyrgyzstan’s Central Bank changed the reserve requirements for its commercial banks to reflect the less stable state of the Kyrgyz som. It reduced the proportion of minimum reserves held in som by 4.5% to 4% of a bank’s total reserves and also increased the requirement to keep 12.5% of the bank’s cash in foreign currency, up 2.5%.

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(News report from Issue No. 260, published on Dec. 11 2015)