The Shah Deniz II gas sales contract with Spanish Gas Natural Fenosa was transferred to Italy's leading energy company Edison as part of a greater deal, including the acquisition of a gas grid in Italy.
The signing took place at SOCAR Tower with the participation of SOCAR, Azerbaijan Gas Supply Company (AGSC), Edison and Gas Natural Fenosa. Edison acquired a 25-year gas supply contract from the Shah Deniz II field. The supply is scheduled to start in 2020, following the completion of the Trans Adriatic Pipeline (TAP).
On the 13th of October 2017, Edison and Gas Natural Fenosa agreed to transfer the Gas Natural Vendita Italia (GNVI), an important gas grid in Italy. The transfer of Fenoza’s Shah Deniz II gas sales contract to Edison was subject to completion of this deal. In February, the European Commission has acknowledged the deal as being compatible with the antitrust regulation.
The Azerbaijan oil and gas production increased by 2.4% and 5.2% respectively in the first three months of the year. Positive dynamics in SOCAR's production was reached as a result of intensified drilling operations, the effective use of existing wells plus the recovery of inactive ones.
Between January-March 2018 SOCAR continued its comprehensive action plan, in order to maintain stable oil and gas production. The volume of drilling work in SOCAR increased by 14% compared to the same period in 2017 (13% in comparison with target figures). Accordingly, SOCAR carried out 40.5 thousand meters of drilling work on 15 wells during this period. 13 wells were drilled additionally by SOCAR's joint ventures. Geological and technical measures were taken in operational wells and 66 redundant wells were reactivated allowing SOCAR to stabilize the production process and produce 1.8 million tons of oil in the first quarter of 2018.
The company's total gas production in the first quarter was approximately 1.6 billion m3, an 8% increase from 2017.
In the first quarter of 2018 oil production in the country increased by 2.4% compared to a year earlier, reaching 9.7 million tons between January-March. There was a growth in gas production too, which reached 7.3 billion m3, 5.2% higher than the figures for the first quarter of the previous year. The increase in production mostly occurred in March - with 5.8% in oil and 12% in gas production.
Petkim's net profit grew more than 9 times in the 9 years up to 2017. As a result of the optimization measures taken last year, approximately $50 million was saved.
On March 30, SOCAR President Rovnag Abdullayev visited Petkim petrochemical complex and STAR Refinery to oversee the implementation of the projects in Aliaga, Turkey . The SOCAR Turkey Aegean Refinery (STAR) will be launched in September 2018. The senior executives held a meeting at the general office of the SOCAR’s branch companies in Aliaga to evaluate the current state of the company’s assets in Turkey and discuss future plans.
It was noted that the vast majority of over $48 million was saved last year as a result of the optimization of Petkim production processes and supply chain. Petkim came under SOCAR's control in 2008. Since then, Petkim’s net profit has increased ninefold and the value of its shares soared by 8.7 times.
At the meeting, SOCAR officials were informed that the construction work is very close to completion, with only 1% to go. The refinery will work in close cooperation with Petkim as a part of the same value chain. Production is forecast to commence in September 2018 and the capacity of the refinery is 10 million tons. Annually, it is expected to produce 4.8 million tons of diesel fuel, 1.6 million tons of aircraft fuel, 1.6 million tons of naphtha and other key products such as LNG, mixed xylene, HRON, oil coke and sulfur.
• An innovative educational project to help national engineers smoothly step from university to business career
• Part of strong support for education and capacity-building - a key direction of SOCAR and BP’s social investment in Azerbaijan
SOCAR’s Baku Higher Oil School and BP launched the “Business education for engineers” course which will be funded by BP in support of education and development of national engineers in Azerbaijan. The programme is designed for the 5th year undergraduate students of Baku Higher Oil School (BHOS) and will aim to provide extensive knowledge in management and business. This is in addition to the high quality engineering education and industrial experience of the prospective graduates and will enable them to integrate into the business environment more efficiently.
The course is expected to develop skills in the analysis and evaluation of complex business problems, and to cultivate a methodical approach to problem solving and decision making. In line with the aim, the curriculum of the course will consist of eight core modules: presentation and communication skills, project management, time management and efficiency, leadership, risk management, introduction to finance, budget and cost control, HR management fundamentals, and negotiation skills.
The State Oil Company of the Azerbaijan Republic (SOCAR) is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate.read more
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