Oil & gas news

CHEVRON DETERMINED TO STAY

The Baku office of Chevron has issued a news release concerning the results of the first exploration well drilled on an offshore block of Absheron. The report says that the well, drilled off "Istiglal" semi-submersible drilling rig, was eliminated on July 18. It has been ascertained that lower reservoirs do contain a certain amount of hydrocarbons, but not sufficient for commercial viability. The well was drilled to a 6,500meter mark in 520 meters of water.

It is remembered that the SOCAR president Natig Aliyev told the Caspian Oil and Gas-2001 exhibition that Absheron would hopefully become a major field not only in local proportions but also in the whole Caspian basin. Its reservoirs were estimated to contain around 1-3 trillion cubic meters of gas.

Despite the disappointing news, Chevron, which holds an interest stake only in this contract in Azerbaijan, it is not going to leave the country. The company intends to take part in the group of sponsors for the construction of the Baku-Tbilisi-Ceyhan oil pipeline. Besides, Chevron is involved in the development of Kazakhstan's field of Tengiz and the issue of Tengiz oil transportation through the main export pipeline is high on agenda for the company.

A source from the company says the well results will be analyzed within a few months. Afterwards, discussions will evolve around the drilling of the second exploration well.

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

DRILLING ON INAM TO CONTINUE

Drilling of the ANX-1 exploratory well on Inam prospect will be continued as Istiglal rig is already being mounted at the drilling site after completing drilling operations on Absheron on July 18, a source from BP, project operator, told AssA-Irada Tuesday. The drilling is expected to take a month.

The drilling of ANX-1 was suspended in mid-February due to high well pressure as Dada Gorgud was unable to continue the operations. For safety reasons, the drilling had to be carried on by the Istiglal rig, which was then involved in drilling operations on Absheron. The designed well depth is 5,025 meters, of which 4,442m mark has already been reached.

BP holds a 25% interest stake in the Inam PSA, Shell 25% and SOCAR 50%.

AIOC ISSUES INTERIM ARRANGEMENTS FOR FINALIZATION OF PHASE 1 CONTRACT AWARDS

AIOC announced that it has now started a three-month interim period with four international contractor companies in order to finalize contracts for construction activities in support of the Phase 1 project of the Azeri, Chirag, Gunashli (ACG) Full Field Development in the Azerbaijan sector of the Caspian Sea. This follows an extensive competitive tendering process spanning some 8 months and involving 14 companies.

The interim arrangements have been awarded to McDermott Caspian Contractors International for the fabrication of platform topsides and for offshore pipelay; Bouygues Offshore for the fabrication of jackets, piles and the drilling template; Emtunga International for Living Quarters; and Saipem for transport and installation activities.

George Siler, ACG Full Field Development Delivery Manager, says: "While this is a major milestone towards commencement of Phase 1 construction activities, award of contracts is not guaranteed by AIOC and will be dependant, amongst other things, on BP and the other participants in AIOC obtaining sanction for the Development and approval by SOCAR."

DRILLING OF SECOND WELL ON GARABAGLI TO START SHORTLY

Drilling of the second exploratory well on onshore Garabagli field is expected to start next week, with final preparatory work currently underway, according to the manager of "Salyan Oil" operating company Tariel Yolchuyev. The designed well depth is over 4,800 meters. Drilling operations will be carried out by Croatian "Cros Co".

It is remembered that the first exploratory well dug on the field has already started production and is currently flowing at the rate of 150 tons a day.

The Kursangi-Garabagli contract is owned by SOCAR (50%), Frontera Resources (30%) and Delta Hess (20%).

LUKOIL TO PURCHASE OIL FLOWING NORTHWARDS

According to a SOCAR source, Russian Lukoil will purchase 250,000 tons of oil to be transported through the Baku-Novorossiysk oil pipeline in July. 150,000 tons of the oil has already been dispatched.

SOCAR said the oil to be exported in August will be bought by German Veba Oil.

It is remembered that the state oil company intends to export 250,000 tons of oil a month through the northern pipeline, which will bring exports to 2.5 million tons this year.

OIL REFINERIES SELL 3MLN TONS OF OIL PRODUCTS

In January-June 2001, SOCAR oil refineries marketed 3 million tons of oil products, including 69% domestically and 31% abroad. 1,506,700 tons of heating fuel, 227,200 tons of diesel fuel, 182,700 tons of automobile gasoline, 66,400 tons of lubrication oils, 8,800 tons of bitumen, 16,300 tons of household fuel, and 90,100 tons of crude oil were sold in domestic markets. The marketing volume went down 20% domestically as compared to 2000.

"AzerEnergy" JSC purchased 99% of its heating oil, while AzAL state concern bought 86% of the lubrication oils.

Azernews

AssA-Irada