OIL & GAS NEWS

NOVEMBER OIL PRODUCTION PLAN FULFILLED, UNLIKE GAS

According to a SOCAR source, in November 2000, 741,900 (99.9%) tons of oil were produced instead of the planned 742,400 tons. The plan has been fulfilled only off-shore, where 617,800 tons of oil (100%) were extracted, while off-shore 124,100 tons of oil (99.5%) were produced instead of the planned 124,700 tons.

The November gas production plan was under-fulfilled off-shore, as 373,000,000 cubic meters (92.9%) were produced instead of the forecast 401,300,000. On-shore, the plan was over-fulfilled: with the plan of 20,800,000 cubic meters, 21,400,000 (102.9%) were produced.

In total, SOCAR gas production in November made up 394,400,000 cubic meters (93.4%).

Considering the extremely low gas production level by the AIOC, 63.4%, total gas production index in November constituted 451.100.000 cubic meters, or 88.2%.

RECESSION IN OIL AND GAS PRODUCTION ONGOING

In January-November 2000, instead of the planned 8,232,700 tons of oil, 8,242,300 tons were produced. Thus, the plan has been over-fulfilled by 0.2%, according to SOCAR. However, as compared to the corresponding period of 1999, a decline by 16,400 tons was in evidence.

According to SOCAR, off-shore oil production plan has been over-fulfilled by 0.3%, as 6,867,700 tons of oil were produced.

On-shore 1,380,500 tons (97.5%) were extracted.

SOCAR gas production in January-November 2000 was below the plan, as 4,614,000,000 cubic meters of gas, 98.4% of the plan, were produced. 4,404,600,000 c. m. were produced off-shore (98.3%) and 209,400,000 onshore (100.5%).

AIOC has produced 584,300,000 cubic meters of gas (63%).

Total factual gas production in 11 months of this year made up 5,198,300,000 cubic meters - 92.6% of the plan and 94.7% of last year's.

OIL PRODUCTS CONSTITUTE 87% OF EXPORTS

In January-October 2000, total exports constituted $1,650,000,000, while 87% was made up of oil and oil products. As compared to 1999, the volume of exported oil products has risen by some 80%, including crude oil 2.4 times, gasoline 30% and kerosene 10%.

95% of oil products were exported abroad.

LUKOIL AND CHEVRON ORONITE TO SET UP JV

"LUKoil" Joint Stock Company and "Chevron Oronite Co. L.L.C." have signed a letter-of-intent confirming their determination to hold business negotiations and develop plans to set up a Joint Venture to produce additives for lubricating oils at LUKoil's refinery in Volgograd, a source from "LUKoil Azerbaijan" told AssA-Irada Friday.

The JV will also be responsible for marketing Chevron's additives in Russia, Azerbaijan, Kazakhstan, and other CIS countries.

According to the "Chevron Oronite" president Patrice Vigno, the venture will use the company's technology. With Russian manufacturing framework available, "Chevron Oronite" will be able to expand the marketing network of additives, he said.

CONSTRUCTION OF CONSTANZA-TRIEST OIL PIPELINE TO COMMENCE IN 2001

Romania is going to tackle construction of the Romanian section of the Constanza-Triest oil pipeline in 2001, according to the Romanian ambassador to Azerbaijan Tasin Camil. The project was announced in 1999, but could not implemented then due to the problems in Serbia.

The pipeline is valued at a total of $900 million. The diplomat explained the relatively low cost of the project by the fact that the line will lie through an even area. The 450-km Romanian section Piteshti-Panchevo will cost the government $250 million. The feasibility study of the project has been carried out by the USA, which has spent $60 million on it.

Asked which oil Romania was counting on, the ambassador answered that the pipeline's designed throughput capacity is 44 million tons of oil a year, while the minimum 5 million tons of oil on the first stage can be pumped through it from the tankers proceeding from Novorossiysk.

Besides, considering the potential of the Caspian region, Romania can count on the oils of coastal countries and has already established contact with Azerbaijan and Kazakhstan, the ambassador said.

OVER TWO-THIRDS OF OIL PRODUCTS MARKETED DOMESTICALLY

In January-December 2000, oil refining enterprises sold domestic consumers 4.4 million tons of oil products, or 10% over 1999. This made up 72% of the total volume of marketed oil products (6.2 million tons). 28% of oil products were exported.

Marketing volume of all key oil products has also increased.

DRILLING BEHIND FORECAST, BUT ABOVE LAST YEAR's

In 11 months of 2000, a considerable delay in drilling both exploration and development wells was in evidence, as the plan was under-fulfilled by 12.3%: 116,745 meters were drilled instead of the forecast 133,059 meters. As compared to 1999, however, this is 36.6% higher.

Under-fulfillment of the drilling plan is explained by an extremely low indicator on-shore: 37,807 (64.1%) meters were drilled instead of 58,984. Off-shore, drilling plan was over-fulfilled by 6.6%, while the increase to 1999 made up 25.4%.

A similar tendency - over-fulfillment off-shore and under-fulfillment onshore - was observed both in exploration and development drilling.

Azernews

AssA-Irada