Oil & gas news

LUKOIL BUYS 5 TAPET SERVICE STATIONS

Lukoil-Azerbaijan has bought 5 gasoline stations that used to be owned by Tapet Oil and Gas Co. Ltd., including 4 in Baku and 1 in Sumgayit.

All the stations are equipped in accordance with modern requirements and meet international technical standards, according to a Lukoil-Azerbaijan source.

President of Lukoil Vagit Alagbarov had announced in a news conference in Baku in March following a field session of Lukoil Board of Directors that Lukoil intends to expand its network of gas stations for an effective operation of its terminal in Baku.

Thus, the number of Lukoil gas stations in Azerbaijan has reached 15, of which 13 are in Baku, one in Sumgayit and one in Gusar.

FIRST GARABAGLI WELL DRILLED HALF WAY

The "Salyan Oil" operating company has reached the depth of 2,000 meters in drilling of the first appraisal well on the Garabagli field. According to a "Salyan Oil" spokesman, drilling of the well, with designed depth of 4,100 meters, is scheduled to complete in mid-June.

The source said 3,300 meters will be vertical, while the rest sidetracked. Results of the first appraisal well are expected to ascertain whether further drilling is necessary.

SOCAR holds a 50% interest stake in the Kursangi-Garabagli project, Frontera Resources 30% and Delta Hess 20%.

BAKU-SUPSA THROUGHPUT CAPACITY TO RISE THIS YEAR

Reconstruction of pumping stations along the Baku-Supsa western export pipeline has been started. The work is expected to complete at the end of the year and raise the conduit's throughput capacity till 130,000 bpd from 120,000 at present.

Since being commissioned in 1999, the western pipeline has transported 12 million tons of the AIOC oil.

4-MONTH OIL OUTPUT ABOVE PROJECTIONS

In the first third of this year, 2,960,100 tons of oil were produced with the plan of 2,925,100 tons, or 101.2% of the task, according to a SOCAR source.

Both off- and onshore plans have been fulfilled, with 2,450,300 tons produced offshore (100.6%) and 509,800 onshore (104.2%).

In January-April gas production plan has been under-fulfilled, with 1,821,900,000 cubic meters produced of the planned (95%), of which 1,563,200,000 cubic meters by SOCAR (98.1%), including offshore, 1,481,100,000 cubic meters (97.7%) and onshore 82,100,000 (105.9%).

The AIOC produced 258,700,000 cubic meters of gas (79.8%) in 4 months.

SOCAR TO HIKE CRUDE EXPORTS

SOCAR intends to export 250,000 tons of crude in May and 255,000 tons in June through the Baku-Novorossiysk pipeline. According to the company, initially the export of 150,000 tons was planned for May and 200,000 tons for June.

The increase will be made possible thanks to growing natural gas imports. With available gas, the demand for heating fuel will decline, which, in its turn, will make it possible to export more oil.

In 4 months of this year, SOCAR has transported around a million tons of crude to the north. If the exports constitute 250,000 tons in May and 255,000 tons in June, the half-year exports will make up around a million tons.

SOCAR FULFILS APRIL OIL OUTPUT PROJECTIONS

In April 2001, SOCAR produced 739,300 tons of oil with the plan of 731,200 tons, or 101.1% of the task. Both off- and onshore plans have been fulfilled, with 609,000 tons produced offshore (100%) and 130,300 onshore (106%).

The April gas production plan has been under-fulfilled, with 464,800,000 cubic meters produced of the planned 477,700,000 cubic meters (97.3%).

Offshore, 375,800,000 cubic meters were produced offshore (99.2%) and 19,700,000 onshore (110.7%).

The AIOC produced 69,300,000 cubic meters of gas (85.6%).

SOCAR's OPERATING WELLS REDUCING

According to a SOCAR source, the company had 6,922 operating wells as of May 1, down to 6,945 as of January 1. Although commissioning of the wells in January-April considerably exceeded projections (194 with the plan of 161), the number of sealed wells was even higher (217). The tendency was observed both off- and on-shore.

As a result, as of May 1, there were 1,365 off-shore and 5,557 on-shore wells.

SOCAR EXPORTS $143MLN WORTH OF PRODUCTS

785,000 tons of oil and oil products totaling $143.3 million were exported in January-April, 2001 through SOCAR's foreign economic relations section. 423,000 tons was made up of crude and 362,000 tons oil products.

More than 60% of the products exported (222,000 tons) was made up of L-40 and L-60 diesel. The rest of the exports was made up of aviation kerosene (81,000 tons) and automobile gasoline (59,000 tons).

According to a SOCAR source, crude exports will be brought to 1 million tons and oil products to 500,000 million tons in the first 6 months of the year.

SOCAR TO RECEIVE ANOTHER PORTION OF PROFIT OIL LATE MAY

SOCAR is expected to receive the 9th portion of profit oil as part of the "Contract of the Century" in late May. A tender for the purchase of the oil will be announced shortly and Azeri Light Brent will be marketed, a source from SOCAR told AssA-Irada Tuesday.

This oil includes 135,000 tons of crude from Chirag field. A tanker carrying the oil will be lifted from Supsa in late May - early June. According to preliminary data, the Oil Fund will receive $26-28 million from the sale.

Azernews

AssA-Irada