Tag Archives: hydrocarbons

BP confirms that Azerbaijani oil output rises

MAY 13 2015 (The Conway Bulletin) – Oil produced by BP’s Azeri- Chirag-Guneshli (ACG) fields in the first quarter of the year inched up to average of 661,000 barrels per day from 645,800 barrels per day during the same period last year, BP-Azerbaijan said.

This increase, although small, is important. BP has been under increasing pressure from Azerbaijan to reverse a decline in output at ACG, the principal driver of Azerbaijani oil production.

For the past couple of years BP has spent millions and replaced various management teams trying to stem the decline in output at ACG.

It now appears to be working, and overall Azerbaijani oil production is rising as a consequence.

Earlier this month BP also said that it was going to suspend operations at one of the ACG platforms for repairs. This should dent ACG output in the short term.

ENDS

(News report from Issue No. 231, published on May 13 2015)

Azerbaijani gas company states ambitions

MAY 8 2015 (The Conway Bulletin) – The chairman of Azerbaijan’s state energy company Rovnag Abdullayev said the country could produce up to 40b cubic metres of gas a year, state- linked media reported. This would propel Azerbaijan into the top tier of global producers.

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(News report from Issue No. 231, published on May 13 2015)

Armenia negotiates gas discount with Russia

MAY 13 2015 (The Conway Bulletin) – Armenia has negotiated a reduced price for gas from Russia’s Gazprom but the government will not pass this saving on to consumers, energy minister, Yervand Zakharyan, said. Instead, Mr Zakharyan said, consumers will pay the same price.

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(News report from Issue No. 231, published on May 13 2015)

Azerbaijan to receive loan from EBRD

MAY 8 2015 (The Conway Bulletin) – The European Bank for Reconstruction and Development (EBRD) said it will give a syndicated loan for the second phase development of the Caspian Sea Shah Deniz gas project. EBRD President Suma Chakrabarti said on a visit to Baku that the size and timeframe were undecided.

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(News report from Issue No. 231, published on May 13 2015)

Azerbaijan’s Oil Fund drops

MAY 1 2015 (The Conway Bulletin) – Azerbaijan’s State Oil Fund said its assets had dropped by 5% in the first three months of the year compared to the same period in 2014. Azerbaijan’s government is trying to push its way through a regional economic downturn and has said it will dip into its reserves to support various projects.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Europe wants gas from Turkmenistan by 2019

MAY 1 2015 (The Conway Bulletin) – The European Union wants to take gas deliveries from Turkmenistan from 2019, part of a determined drive to use Central Asia to weaken Russia’s grip over its energy supplies.

On a trip to Ashgabat, Maros Sefcovic, a European Commission vice-president and its top energy official, said gas could be sent to Europe from Turkmenistan either through a proposed pipeline that runs along the Caspian Sea floor or via Iran and then through neighbouring Turkey.

“Europe expects supplies of Turkmen gas to begin by 2019,” he said after meeting Turkmen president Kurbanguly Berdymukhamedov.

For years Europe and Turkmenistan have discussed the tantalising potential of Turkmen gas reaching European households, but Mr Sefcovic’s trip to Ashgabat and subsequent statement is the strongest indication yet that what once appeared rather fanciful could actually materialise.

And it would be a game changer for Europe and Turkmenistan.

Europe is desperate to reduce Russia’s grip over its gas supplies, especially since the eruption of war in east Ukraine and the souring of relations with the Kremlin.

Turkmenistan, which holds the world’s fourth largest gas reserves and has been maturing its production process, is eager for more clients.

Currently China buys most of Turkmenistan’s gas. Europe, though, would be another large, stable client and it would propel Turkmenistan into the top division of global gas suppliers.

On his trip to Ashgabat, Mr Sefcovic also met with energy ministers from Azerbaijan and Turkey. The EU needs their support to pump Turkmen gas.

The stakes are high for both Europe and Turkmenistan.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Kazakh energy company revenues drop

APRIL 30 2015 (The Conway Bulletin) – Revenue at Kazmunaigas EP, the London-listed unit of Kazakhstan’s state energy company, fell by 47% last year because of the collapse in oil prices, it said at its annual results. Importantly, too, salaries increased by 10% at Kazmunaigas after last year’s devaluation of the Kazakh tenge.

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(News report from Issue No. 230, published on May 6 2015)

Kazakhstan to resume pumping oil in Caspian Sea

APRIL 30 2015 (The Conway Bulletin) – Vladimir Shkolnik, Kazakhstan’s energy minister, said the Caspian Sea oil project Kashagan would resume pumping oil in December 2016. This estimation is a few weeks earlier than Western energy companies linked to the project have suggested. Oil from Kashagan was suspended in 2013.

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(News report from Issue No. 230, published on May 6 2015)

Petronas completes Statoil deal in Azerbaijan

APRIL 30 2015 (The Conway Bulletin) – Malaysia’s state energy company Petronas completed the $2.25b buyout of the Statoil’s assets in Azerbaijan, making it one of the biggest players on the Azerbaijani oil and gas scene.

The deal included a 15.5% stake in the Shah Deniz gas project, a 15.5% stake in the South Caucasus Pipeline Company and a 12.4% stake in the Azerbaijan Gas Supply Company.

Importantly, too, Azerbaijan’s state oil and gas company SOCAR took over operational control of the South Caucasus Pipeline Company which pumps gas from the Shah Deniz project, across Georgia to Turkey. From there it links up to the Turkish gas pipeline network.

Statoil surprised analysts last October when it agreed the deal. At the time it said that it wanted to reduce the proportion of investment in its portfolio in favour of higher value projects.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Armenia to get cheaper gas

APRIL 29 2015 (The Conway Bulletin) – Russian gas monopoly Gazprom has agreed to lower the price of gas it sells to consumers in Armenia by 13%, media reported quoting Gazprom chairman Alexei Miller. Gazprom owns the gas pipelines in Armenia.

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(News report from Issue No. 229, published on April 29 2015)