Oil & gas news

SOCAR PLANNING ON CRUDE EXPORT HIKE

In 2001, SOCAR is going to export 2.5 million tons of crude oil, therefore, monthly exports in the 3rd and 4th quarters will be raised to 250,000 tons, according to a SOCAR source.

The company has already notified Russian "TransNeft" of the plans to export 750,000 tons in the 3rd quarter.

In May and June, SOCAR will be exporting 250,000 tons a month.

DRILLING ON OGUZ ON SCHEDULE

Drilling of the first exploration well on Oguz prospect is progressing in accordance with schedule and without problems, Exxon Azerbaijan public affairs manager Joe Carlson told Azernews Saturday.

Asked about the well depth, Mr. Carlson said the company had decided not to release the information for press, adding that drilling would be completed on time and mass media notified of its outcomes.

Touching upon ExxonMobil's involvement in the Baku-Tbilisi-Ceyhan MEP, the manager said, "We have been following up on all developments to this end and will soon arrive at a final decision whether or not to take part in the project".

According to him, ExxonMobil is unlikely to join the BTC Group of Sponsors.

Though ExxonMobil has been meeting with SOCAR, it has not disclosed its final decision concerning the participation in the pipeline project.

EXXONMOBIL INVESTS $800MLN IN AZERBAIJAN

ExxonMobil has invested $800 million in Azerbaijan's oil sector since coming to the country, the Exxon Azerbaijan operating company public affairs manager Joe Carlson said Friday.

According to him, the company is currently involved in 6 projects in Azerbaijan: Azeri-Chirag-Gunashli, Oguz, Nakhchivan, Alov-Araz-Sharg, Zafar-Mashal, and Lerik, including four as operator.

Oil is already being produced from Azeri, the first exploration well is being drilled on Oguz, drilling operations are expected to commence on Nakhchivan later this year with seismic survey underway on Zafar-Mashal and Alov-Sharg.

According to Mr. Carlson, ExxonMobil has expended over $2 million on social programs in Azerbaijan, the bulk of which targeted education and assistance to refugees and IDPs.

DRILLING ON NAKHCHIVAN TO START IN THIRD QUARTER

The first exploration well on the "Nakhchivan" prospect will be drilled in the third quarter of 2001, Exxon Azerbaijan drilling executive Carl McDonald told journalists Thursday. According to him, the estimated depth of the well is 6,444 meters with the drilling to last 260 days.

The drilling will progress using the "Istiglal" semi submersible drilling rig, currently on the "Absheron" field, where drilling operations are scheduled to complete in July.

According to Mr. McDonald, the water depth in the drilling site is 142 meters with two exploration wells to be drilled. The Exxon executive declined to name an exact date for the drilling, saying that work schedules of drilling rigs are not always adhered to and certain delays are not ruled out.

SOCAR holds a 50% interest stake in "Nakhchivan", while Exxon Mobil possesses the other 50% as operator.

SOCAR TO PAY OFF BUDGET ARREARS IN SUMMER

Results of the first 4 months of 2001 showed that SOCAR had fulfilled budget payments by only 61% to a complete repayment of budget arrears last year. A source from SOCAR told Azernews Thursday that the failure to execute budget is explained by 2 reasons.

Firstly, budget commitments have risen by AZM400 billion to last year due to rises in international oil prices since late 2000. The second reason is that less crude oil was exported in January, February and March because of an increased domestic need for heating oil.

In May SOCAR started to export 250,000 tons of crude oil per month, which will allow the state company to pay off budget arrears in summer.

SOCAR transferred AZM1,085,000,000,000 last year with the target of AZM865,000,000,000.

SOUTHERN PART OF AZERI SECTOR OF CASPIAN NOT STUDIED ENOUGH

The southern part of the Azeri sector of the Caspian has not been sufficiently studied, according to the SOCAR vice-president Khoshbakht Yusifzadeh. He said little attention was being paid to this part of the sea in the Soviet times.

The Savalan field in the south illustrates that this portion of the Caspian also contains considerable hydrocarbon resources and after the legal status of the sea is determined this territory will be duly explored, he said.

A short while ago the issue of the joint development of Savalan was under consideration, but foreign oil companies declined to sign the contract following Iran's claims for the territory.

LUKOIL BUILDING UP FLEET

The Lukoil-Arctic-Tanker (LAT) company, a subsidiary of Lukoil open joint stock company has taken over controlling stock in the Arkhangelsk-based Northern Shipping Company (NSC). The NSC fleet includes 54 vessels of different classes, as well as three diesel-powered icebreakers. The combined freight-carrying capacity of the vessels constitutes over 300,000 tons. NSC specializes in cargo transports in the Arctic region as part of the "Northern Imports" program and fulfills orders of foreign freighters.

Lukoil intends to use NSC vessels to transport oil-field equipment in the Timano-Pechora oil and gas rich province. LAT owns a fleet comprising ice class tankers and controls 51% in the Murmansk Shipping Company. Thus, Lukoil currently has a fleet incorporating around 200 various-profiled vessels. The company fleet's total cargo capacity exceeds a million tons, according to the Lukoil office in Azerbaijan.

ABSHERON WELL-DEPTH OVER 5,700M

The first exploration well on Absheron prospect has reached the depth of 5,720 meters, Chevron Baku office told AssA-Irada Tuesday. The work is progressing as scheduled and if no problems are encountered drilling operations are scheduled to complete in July.

2 appraisal wells will be bored on the prospect. The first, to be drilled in 520 meters of water, will be 6,700m deep. Drilling will be carried out using the Istiglal semi submersible drilling rig.

SOCAR holds a 50% stake in the Absheron PSA, Chevron (operator) has 30% and TotalFinaElf 20%.

Azernews

AssA-Irada