Tag Archives: hydrocarbons

Uzbekneftegaz to launch gas-to-liquid plant this year

JUNE 11 2021 (The Bulletin) — Uzbekneftegaz said that it would launch its first gas-to-liquids plant in Q4 2021. Opening the plant in the south of the country will reduce Uzbekistan’s reliance on imports of diesel and jet fuel. Uzbekneftegaz has been building the $3.6b plant since 2019. It was supposed to start operations in 2020 but the coronavirus pandemic and strikes over pay and conditions have delayed the construction.

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— This story was published in issue 48 of the Central Asia & South Caucasus Bulletin, on June 16 2021

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Kashagan to start work on building gas processing plant

JUNE 8 2021 (The Bulletin) — Kazakh PM Askar Mamin inaugurated the construction of a gas processing plant at an onshore plant linked to the Kashagan oil project. The Kashagan oil field is in the Caspian Sea but it pumps oil and gas to an onshore processing site. The gas processing plant will start production from the end of 2023 and will have a capacity of 1m cubic metres of gas per year.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

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Lukoil expects to be named Dostluk operator

JUNE 3 2021 (The Bulletin) — Lukoil expects to be named as the operator of the Caspian Sea’s Dostluk oil field which Turkmenistan and Azerbaijan said earlier this year that they want to exploit, the TASS news agency quoted Lukoil chairman Vagit Alekperov as saying. Dostluk sits midway between Azerbaijan and Turkmenistan and had been the focus of a long-running row between the two countries.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

BP walks away from three oil projects in Kazakhstan’s Caspian Sea

ALMATY/MARCH 11 (The Bulletin) — Britain’s BP has walked away from three oil and gas projects in the Kazakh sector of the Caspian Sea, saying that it wanted to focus on developing its renewable energy portfolio instead, Kazakhstan’s state-owned Kazmunaigas said (March 11).

BP’s decision to ditch potential projects in the Caspian Sea with Kazmunaigas, which it explained in a letter in October last year, will concern Kazakh officials who still see exploiting oil and gas potential as the quickest and most certain way of pushing economic development forward.

Kazmunaigas said that it was publishing BP’s letter on its website in response to media speculation on why progress on the three hydrocarbon blocks has stalled.

“The decision is related to a revision of the company’s strategy — BP intends to focus its activities on renewable energy sources,” Kazmunaigas wrote.

For the 18 months up to October 2020, BP had been evaluating the potential for developing the Bolshoy Zhambyl, Zhemchuzhnaya and Kalamkas Sea offshore blocks, located near the Karachaganak oil field. Karachaganak is Kazakhstan’s largest post-Soviet oil discovery but it has been beset by cost overruns and production problems.

BP’s exit from the Kazakh sector of the Caspian Sea follows a decision by Royal Dutch Shell in 2019 to also quit two oil projects because the costs were too high.

During the coronavirus pandemic, oil prices plunged and last year BP said that it wanted to restructure its portfolio and cuts its hydrocarbon base by 40% over the next decade.

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— This story was published in issue 475 of the Central Asia & South Caucasus Bulletin, on March 15 2021

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Azerbaijan’s daily oil production will increase -EIA

MARCH 11 (The Bulletin) — The US Energy Information Agency (EIA) increased its forecast for Azerbaijan’s oil production to 770,000 barrels per day (bpd) in 2021, up 40,000bpd from an earlier forecast. The increase is linked to a relaxation of oil production limits that the Saudi-led oil cartel OPEC and its FSU supporters, Russia, Kazakhstan and Azerbaijan, introduced last month. Limits had been imposed to push up oil prices. In 2020, during the oil production limits, Azerbaijan had produced 710,000bpd. Oil revenues form the backbone of Azerbaijan’s economy.

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— This story was published in issue 475 of the Central Asia & South Caucasus Bulletin, on March 15 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

OPEC agrees to allow Kazakhstan to increase its oil production quota

MARCH 5 2021 (The Bulletin) — OPEC, the Saudi Arabia-dominated oil exporting group agreed to allow Kazakhstan to raise its output. OPEC members had cut production to boost oil prices. Now that prices have increased, Brent crude is at around $69/barrel — its highest since the end of 2019, OPEC has loosened restrictions. Azerbaijan and Kazakhstan, along with Russia, are not OPEC members but had gone along with the cuts. From April, Kazakhstan can boost its output by 20,000 barrels of oil per day (bpd), up from its current level of 1,437,000bpd. Azerbaijan, though, has agreed to maintain its output at 595,000 bpd.

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— This story was published in issue 474 of the Central Asia & South Caucasus Bulletin, on March 5 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Taliban travel to Ashgabat for talks on TAPI gas pipeline

FEB. 7 2021 (The Bulletin) — Looking for security guarantees for the TAPI gas pipeline that it wants to build across Afghanistan, Turkmen officials held talks in Ashgabat with the Taliban. TAPI is an ambitious project, pushed by gas-rich Turkmenistan and part-funded by the Asian Development Bank, to build a pipeline across Afghanistan to Pakistan and India. One of the main problems with the project has been security concerns in Afghanistan.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

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Italian company wins Heydar Aliyev refinery update project

FEB. 3 2021 (The Bulletin) — Italian engineering company Maire Tecnimont said that it had won a tender in Azerbaijan to modernise part of the Heydar Aliyev oil refinery outside Baku. It said that the new project is worth $160m and will take up to three years to complete. Azerbaijan, like its neighbours, is investing in power generation and refining capabilities, creating opportunities for Western contractors.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

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Uzbek refinery workers protest over job threat

JAN. 19 2021 (The Bulletin) — Workers at the Altyaryk oil refining plant in Uzbekistan’s Ferghana Valley have been striking and staging sit-ins since Jan. 10 because of what they say are planned job cuts, media reported. The refinery management has said that it is modernising the plant to upgrade it to Euro-5 standard fuel production and that jobs will be preserved. Workers, though, told the Eurasianet website that there hasn’t been any fuel production since July and that 2,000 jobs will be lost.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

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Fuel prices rising in Tajikistan

JAN. 18 2021 (The Bulletin) — Fuel prices are rising in Tajikistan, media reported by quoting local taxi drivers who said that there had been a 10% increase in the past week. Analysts said that the fuel price increase is linked to a drop in imports of fuel from Russia and Kazakhstan. Tajikistan does not have its own oil refinery and is reliant on imports.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

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