MAY 14 2015 (The Conway Bulletin) – Outside the financial sector, SOCAR, Azerbaijan’s state energy company, is the largest company in Georgia, media reported quoting research from Ilia University in Tbilisi. SOCAR Petroleum Georgia is a SOCAR subsidiary. Its main business in Georgia is a network of petrol stations.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 232, published on May 20 2015)
SUMQAYIT/Azerbaijan, MAY 20 2015 (The Conway Bulletin) — Absheron, the narrow peninsula surrounding Azerbaijan’s capital Baku, gives a remarkable insight into the country’s patchy oil-funded growth.
Dystopian industrial decay, dirty villages of crumbling homes and bleak oil fields of rusty drills share the same few dusty square miles with newly built sumptuous seaside resorts, whitewashed villas and long stretches of crowded beaches dotted with flashy restaurants and garish wedding palaces.
The coexistence of opposites is arguably not a harmonic one. Embarrassed by the deteriorating state of Absheron’s infrastructure and the dire living conditions of much of its population Azerbaijan’s political elite seems to have opted for the creation of a Potemkin-façade of disproportionate lavishness.
Along the modern highway connecting Heydar Aliyev International Airport to the resort town of Buzovna high marble walls veil the view of surrounding shantytowns and oil spills.
Azerbaijan’s government indulges in creating unrepresentative showcases of the country, while the huge revenues of the oil and gas industry centred in and around Absheron, fail to filter down to the local inhabitants.
The uneven distribution of both profits and investments is epitomised by the fate of Sumqayit, Absheron’s biggest town. A thriving industrial centre during Soviet times, this northern shore town of concrete blocks and wide alleys now feels abandoned.
Resentment towards the government is high in Sumqayit and the town has become a breeding ground for religious extremism. Last year there were reports that Sumqayit had become a hotbed for Syria-bound would-be jihadists and a string of arrests and search operations were carried around town.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 232, published on May 20 2015)
MAY 18 2015 (The Conway Bulletin) – Kazakhstan could buy a 29.25% stake in the Karachaganak oil and gas project in the north of the country when Shell completes its buyout of BG Group next year, BG Group said in its annual report.
Kazakhstan has been looking to increase its stake in various projects. Karachaganak was one of the last major operations that the Kazakh government took a stake in. It bought a 10% stake in Karachaganak for $3b in 2012.
Now, with Shell buying BG Group, Kazakhstan has the opportunity to buy a far larger chunk of Karachaganak.
“It is possible that the Republic of Kazakhstan may claim to have a right to acquire the Group’s interest in the Final Petroleum Sharing Agree- ment governing the operation of the Karachaganak gas and con- densate field in the event of a change of control of BG Group following a takeover bid,” BG Group said.
The Kazakh government hasn’t commented.
Karachaganak is one of BG Group’s most prized posses- sions, accounting for 9% of its revenues in 2014. Analysts have said that BG Group’s stake maybe worth around $4.4b.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 232, published on May 20 2015)
MAY 15 2015 (The Conway Bulletin) – Oil exports from Azerbaijan in the first four months of the year fell by nearly 1%, Reuters quoted a source at the state statistics agency as saying. The source did not specify a reason for the decline although it came as a surprise, especially after an earlier statement from BP that its oil output for Q1 had risen.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 232, published on May 20 2015)
MAY 13 2015 (The Conway Bulletin) – Uzbekistan will increase oil and gas production by 9% in the next five years, Uzbekneftegaz the state oil and gas company, said. Media quoted Uzbekneftegaz representatives at a conference in Tashkent aimed at foreign investors.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 231, published on May 13 2015)
MAY 12 2015 (The Conway Bulletin) – Around 140 people working for the oil services company KazStroyService have gone on strike in west Kazakhstan demanding an increase in wages, media reported. Kazakhstan is sensitive to strikes. In 2011, 16 people died during fighting between protesters and police at a strike in west Kazakhstan.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 231, published on May 13 2015)
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
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 231, published on May 13 2015)
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
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 230, published on May 6 2015)
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.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 230, published on May 6 2015)
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.
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 230, published on May 6 2015)