Oil & gas news

DRILLING OF FIRST EXPLORATION WELL TO START ON KURDASHI

After the well-mouth on Inam field has been sealed off, the Dada Gorgud drilling rig was provided to Italian Agip, head of the BP business group Gordon Birelyn said Tuesday.

The Agip Baku office confirmed the fact, adding that the company is expected to release an official report on the commencement of drilling operations on Kurdashi in a few days.

Drilling of the exploration well on Kurdashi was earlier scheduled for May-June.

SOCAR holds a 50% interest stake in the Kurdashi contract, 25% is held by Agip, 15% by Japan's Mitsui, 5% by TPAO, and 5% Spanish Repsol respectively.

DRILLING ON ABSHERON SCHEDULED TO COMPLETE IN JUNE

The first appraisal well on Absheron prospect has reached the depth of 4,900 meters. A source from Chevron, project operator, has told Azernews that if no new problems arise, the drilling operations will complete in June.

Two exploratory wells are to be drilled on Absheron. The first, with designed depth of 6,700 meters, will be drilled in 520 meters of water using the "Istiglal" drilling rig.

Chevron holds a 30% stake in the Absheron contract, TotalFinaElf 20% and SOCAR 50%.

RAMCO SELLS INTEREST IN BTC

Scottish Ramco has sent its 1.55% interest stake in the Baku-Tbilisi-Ceyhan MEP project along with its 2.0825% equity stake in the Contract of the Century. Informing journalists of this, the AIOC president David Woodward said both of the stakes have been taken over by the Unocal-Devon Energy-Delta Hess alliance.

The Ramco Baku office has declined to provide any comment.

Interest stakes in the BTC are as follows: SOCAR 50%, BP 25.41%, Unocal 7.65%, Statoil 6.37%, TPAO 5.02%, Itochu 2.92%, Delta Hess 2.03%, and Devon Energy 0.6%.

Having sold its interest stake in the BTC, Ramco is no longer involved in any contracts in Azerbaijan.

FEASIBILITY STUDY READY

As part of the European Union Tacis program, French Sofregas has prepared the feasibility study for reconstruction of the Garadagh and Kalmas subterranean gas storage facilities. According to the document, reconstruction of the former requires $171 million and of the latter $81 million, according to "AzeriGas" joint stock company.

Currently, the combined storage capacities of the two sites are 5 billion cubic meters of gas. In the future, as production of natural gas in the republic rises, in particular due to the development of Shah Daniz and other vast gas fields, the volume of stored gas will also increase. This has necessitated construction of extra storage capacities.

DAILY OUTPUT FROM KURSANGI-GARABAGLI RAISED

Salyan Oil Operating Company produces 550 tons of oil per day from Kursangi and 220 tons per day from Garabagli, which translates into almost 23,000 tons a month. According to the company manager Tariel Yolchiyev, 15,000 tons of the oil is passed on to SOCAR, while the other 8,000 tons are exported by the company itself.

So far, the exports are being executed through railway, with the Baku-Novorossiysk oil pipeline anticipated to be engaged in the future, he said.

When Salyan Oil embarked on the development of the field in January 1999, daily production constituted 394 tons, while at present the figure stands at 770 tons.

SOCAR holds equity interest of 50% in the Kursangi-Garabagli, Frontera Resources 30% and Delta Hess 20%. All of them are partners in Salyan Oil Operating Company.

OVER 6MLN TONS OF OIL TO BE REFINED THIS YEAR

Before the end of this year, the "AzerNeftYag" and "AzerNeft-Yanajag" refineries will refine a total of 6,215,000 tons of oil, says general director of "AzerNeftYag" Ramiz Mirzayev.

According to him, although the combined capacities of the two refineries constitute 22 million tons, only 29-30% of them are currently engaged. This is explained by the fact that Azerbaijan gives preference to exporting crude as it fetches hard currency to the state budget.

Mr. Mirzayev indicated that just 4 million tons would be refined next year, which, however, will suffice to meet domestic demand.

"AzerNeftYag" refined 1,080,000 tons of oil products last year and 250,000 tons in the first quarter of 2001, transferring $45,905,000 to the state budget last year and $5,501,000 this year.

DEEPWATER RESEARCH OF ARAZ-ALOV-SHARG TO COMMENCE IN JULY

The deepwater research of the Araz-Alov-Sharg prospect is expected to start in July, according to a BP source, with Azeri scientists also to be involved in the work. To be studied is the location and composition of minerals in the deepwater portion of the sea.

The research is scheduled to complete in 2002 and, if the schedule of the rig club permits, drilling of the first well on the prospect will start thereafter.

The project is operated by BP, which holds a 15% stake. SOCAR holds 40%, ExxonMobil 15%, Statoil 15%, TPAO 10%, and Alberta Energy 5%.

LUKOIL-AZERBAIJAN RECEIVES INT’L AWARD

The organizing committee of the 12th International Award for Technology and Quality, in cooperation with the World Trade Leaders Club, has awarded Lukoil-Azerbaijan closed joint stock company for innovative work methods.

As a result of a research carried out by international experts in Azerbaijan, it has been ascertained that the company's oil terminal and gasoline stations in Azerbaijan are equipped with advanced technologies enabling top quality service standards, according to Lukoil-Azerbaijan office in Baku.

Lukoil is contractor for diesel fuel supplies almost for all oil consortia and other companies active in Azerbaijan, as well as most of the Caspian Shipping Company vessels.

Lukoil-Azerbaijan was represented by the deputy general director Shahin Aliyev and an aide to the general director Behnam Gurbanzadeh at a ceremony held in Geneva, Switzerland, on April 23.

AZERBAIJAN TO REFINE KAZAKH, TURKMEN OIL

Talks with Turkmen and Kazakh governments have been underway for a month on refining the low-quality oil from these countries by the "AzerNeftYag" refinery, says general director Ramiz Mirzayev.

According to him, the parties have reached initial agreement. Without spelling out the volume of oil to be refined, Mr. Mirzayev said it would be enough to keep the enterprise working. Oil refining is expected to commence next year.

NEW OIL BLOCK TO BE BUILT

To improve the quality of lubricating oils produced by "AzerNeftYag" refinery, a new oil block will be built at the plant.

According to the general director of the refinery Ramiz Mirzayev, talks are underway with US Mobil and Chevron, British Salvalub, German Manisman, as well as Japanese and Czech companies.

A consortium to be set up will not only take part in construction of the new block, but also assume marketing of products.

Construction of the oil block is expected to start shortly.

OVER 200,000 TONS OF OIL PRODUCTS EXPORTED IN APRIL

14,234 tons of gasoline, 2,964 tons of L-40 diesel fuel, 33,428 tons of L-62 diesel fuel, and 15,346 tons of aviation kerosene were exported in April through SOCAR's foreign economic section.

Oil exports in April exceeded those of March.

Besides, SOCAR has sent 136,830 tons of crude through the Baku-Novorossiysk pipeline, which is 3,000 tons below the plan, according to SOCAR.