News Archive

15 September 2017

Baku Higher Oil School starts new academic year


Baku Higher Oil School hosted a ceremonial event dedicated to beginning of the new academic year and celebration of the Day of Knowledge on September 15. Before beginning of the event, the participants laid flowers to the memorial of the National Leader Heydar Aliyev. The event started with playing the National Anthem of Azerbaijan Republic. In his welcoming address, BHOS Rector Elmar Gasimov congratulated all attendees on this remarkable day and extended his special congratulations and best wishes to first-year students and their parents. The Rector reported that out of those 25 students who showed the highest score in the entrance exams for 2017/2018 academic year in 1st group of specialties and were granted with the presidential scholarship by a decree of the President of the Republic of Azerbaijan Ilham Aliyev, 24 persons chose to study at BHOS. He informed that the minimum passing score for admission to Process Automation Engineering department was 685 points and it already became record high in the country.

BHOS first 102 graduates already started to work at SOCAR, SOCAR AQŞ, SOCAR Polymer, SOCAR Upstream, and PETKIM and STAR in Turkey, as well as at transnational companies including BP, Maire Tecnimont Group and Halliburton. Other graduates were admitted to pursue either Master or Ph.D. degree at various well-recognized universities abroad including Hamburg-Harburg Technical University in Germany, Stanford University in the USA, Friedrich-Alexander University Erlangen-Nürnberg in Germany, and Colorado School of Mines in the USA.

Speaking at the ceremony, SOCAR President and Deputy of Milli Majlis of Azerbaijan Rovnag Abdullayev extended his congratulations to BHOS teachers, professors, staff members, students and their parents on beginning of the new academic year. He said study at the Higher School would help young people become highly trained engineers who would be capable to make significant contribution to the development of energy sector of the country.

Rovnag Abdullayev reminded that opening of a new campus of the Higher School with participation of the President of the Republic of Azerbaijan Ilham Aliyev took place on May 1, 2017. In his inauguration speech, President Ilham Aliyev highly appraised the BHOS successful activity and the new campus, the biggest in the region. Rovnag Abdullayev also emphasized that achievements of the Higher School are a vivid evidence that implementation of the appeal of President Ilham Aliyev to transform oil capital into human capital remains a priority for SOCAR.

Addressing the ceremony participants, BP Regional President for Azerbaijan, Georgia and Turkey Gary Jones expressed his satisfaction with the long-term and fruitful cooperation between BP and the Higher School. In his words, this partnership is aimed to support BHOS activities on training highly qualified engineers who can contribute to economic development of Azerbaijan.

Speaking at the ceremony, SOCAR First Vice President Khoshbakht Yusifzade and Deputy Head of office, Head of Science and Higher Education Department of the Ministry of Education of Azerbaijan Yagub Piriyev also congratulated the students and wished them successful study and professional career in the future.

On behalf of all BHOS students, Ahmed Gelenderli who graduated from the Higher School with a Bachelor degree in Chemical Engineering extended sincere gratitude to the President of the Republic of Azerbaijan, top management of SOCAR and BHOS, and professors of the Higher School. He wished all first-year students to become good students and professionals.

First-year students, their parents and principals of the schools they graduated from emphasized that the Higher School provides all necessary conditions and opportunities for education and professional development of undergraduates. They thanked BHOS staff for their efforts in providing high-quality theoretical and practical training to future engineers.

At the end of the ceremonial event, the first-year students admitted to BHOS in 2017/2018 academic year were presented with their student cards.

14 September 2017

Statoil delegation visits SOCAR


On September 14, SOCAR President Rovnag Abdullayev received Lars Christian Bacher, Statoil's Executive Vice President for Development and Production International. Welcoming the guest, Mr. Rovnag Abdullayev spoke about long-term cooperation relations between SOCAR and Statoil, stressed that Statoil was one of the main partners of SOCAR in the projects of global importance such as Azeri-Chirag-Gunashli (ACG) and Baku-Tbilisi-Ceyhan. Pointing out today's signing of a new contract on ACG project until 2050 under agreed terms between SOCAR and co-venturers a remarkable event, Mr. Abdullayev stated that the new agreement once again demonstrated the confidence of foreign partners in the Azerbaijani economy, taking effective partnership to a new level.

Expressing gratitude for sincere reception, Mr. Lars Christian Bacher noted Statoil's successful operating in Azerbaijan already for 25 years and emphasised that the agreement signed today on extension of cooperation was the best gift for this anniversary. According to him, efficient and productive cooperation has been established with SOCAR in energy projects, as well as in socially significant events. Mr. Bacher said that operation within the ACG project were conducted in accordance with international standards. He expressed confidence that the ACG project would continue to occupy an important place in the international activity of Statoil for many years.

At the meeting, the sides discussed joint development of ''Garabagh'' field, ''Ashrafi'' and ''Dan Ulduzu'' structures by the SOCAR and Statoil, heard proposals, and exchanged views in this regard.

A wide range of issues of mutual interest were considered at the meeting.

14 September 2017

Press Release


14 September 2017

The Azerbaijan Government and co-venturers sign amended and restated Azeri-Chirag-Deepwater Gunashli PSA
The Azerbaijan Government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh today signed the amended and restated agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field (ACG) in the Azerbaijan Sector of the Caspian Sea. The contract is now subject to ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan.

The contract was signed in Baku today in the presence of H.E. President Ilham Aliyev of the Republic of Azerbaijan and a group of visiting senior government and state officials, by Rovnag Abdullayev, President of SOCAR, on behalf of the Azerbaijan Government, and by the representatives of the co-venturer companies.

BP will remain the operator in accordance with the amended and restated ACG PSA.

As part of the contract, the international co-venturers will pay a bonus of $3.6bn to the State Oil Fund of the Republic of Azerbaijan, and SOCAR will increase its equity share in the ACG PSA from 11.65 per cent to 25 per cent. During the next 32 years, there is the potential for more than $40bn capital to be invested in the ACG oil field.

Following completion of the contract, the new ACG participating interests will be as follows: BP, 30.37 per cent; AzACG (SOCAR), 25.00 per cent; Chevron, 9.57 per cent; INPEX, 9.31 per cent; Statoil, 7.27 per cent; ExxonMobil, 6.79 per cent; TP, 5.73 per cent; ITOCHU, 3.65 per cent; and ONGC Videsh Limited (OVL), 2.31 per cent.

Subsequent to this contract, SOCAR and its co-venturers have also agreed to progress engineering development work to evaluate an additional production platform in the ACG contract area.

Rovnag Abdullayev, SOCAR President, said: “Today is a significant day for Azerbaijan. It brings back the days, when we signed “The Contract of the Century”. Despite the challenging political and economic conditions of that time, thanks to the intense effort by our national leader Heydar Aliyev the first ACG contract was signed, laying the foundation of the future economic development of Azerbaijan. Since the signing of the first PSA in 1994, ACG has benefited from $33bn of investment, producing around 440 million tonnes of oil, and delivering directly more than $125bn of net profit to our country.

“Finalizing the negotiation process between SOCAR and the partner companies today, we have signed the new contract on the ACG project on agreed terms. The new contract is effective until the end of 2049. The terms of the new contract will take effect following their ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan, which will enable us to maximize the economic benefits for our country from ACG over the next 32 years. The terms of the new contract reflect the growing financial and technological potential of Azerbaijan and SOCAR. They also demonstrate the confidence of our foreign partners in the Azerbaijani economy, taking our effective partnership to a new level.”

Bob Dudley, Group Chief Executive of BP, said: “Over the past 23 years the Contract of the Century has truly transformed Azerbaijan, energy supplies to Europe and all of us who have worked so hard to make it a success. Today’s contract is perhaps an even more important milestone in the history of Azerbaijan as it ensures that over the next 32 years we will continue to work together to unlock the long-term development potential of ACG through new investments, new technologies and new joint efforts to maximise recovery. In light of that, I think it is fair to call this the Contract of the New Century.”

Notes to editors

• The existing ACG PSA was signed on 20 September 1994. Since that time around $33bn of investment has been made into the development of the ACG field.

• First oil was produced from the Chirag field on 7 November 1997. To date, the field has delivered around 3.2 billion barrels (around 440 million tonnes) of oil production, which has been exported to world markets, primarily via the Baku-Tbilisi-Ceyhan and Western Route Export pipelines.

• ACG has also delivered over 30 billion cubic metres of associated gas in total to the Government of Azerbaijan.

• In the first half of 2017, total production from ACG averaged 585,000 barrels per day.

• ACG currently has eight offshore platforms - six production platforms and two process, gas compression, water injection and utilities platforms. The platforms export oil and gas to the Sangachal Terminal, one of the world’s largest oil and gas terminals, onshore near Baku.

11 September 2017

SOCAR’s budget payments for August 2017


SOCAR paid AZN 133 million 782 thousand to the State Budget for August of the current year that is AZN 17 million 321 thousand (14,9%) more than the same period of 2016. In general, for January-August 2017, SOCAR transferred AZN 1 billion 48 million 348 thousand (AZN 142 million 946 thousand or 15,8% more than the same period of 2016) to the State Budget.

Besides, the Company’s payment to the State Social Protection Fund amounted AZN 12 million 575 thousand in August. As a whole, the January-August payments to State Social Protection Fund totalled AZN 99 million 826 thousand (AZN 5 million 479 thousand or 5,8% more than the same period of 2016).

8 September 2017

BTC transported 2.5 mln tons of Azerbaijani oil in August


2 mln 484 thousand 700 tons of Azerbaijani oil were transported via BTC main export pipeline in August 2017. 18 mln 62 thousand 280 tons of oil were transported via this pipeline in January-August. In general, 339 mln 600 thousand 342 tons of oil have been pumped to BTC since the start of pipeline exploitation until September 1, 2017. In addition, overall 549 thousand 434 tons of Turkmen oil were pumped via BTC in August 2017.

8 September 2017

2.5 mln tons of Azerbaijani oil delivered from Ceyhan Port to world market in August 2017


2 mln 531 thousand 737 tons of Azerbaijani oil were delivered from Ceyhan Port to the world market in August 2017. (1 mln 733 thousand 485 tons of this volume were the oil of the State Oil Fund of the Republic of Azerbaijan). 17 mln 239 thousand 539 tons of oil were exported from Ceyhan in January-August this year. In general, 337 mln 74 thousand 138 tons of Azerbaijani oil have been exported from Ceyhan Port to the world market since the start of BTC exploitation until September 1, 2017.

8 September 2017

Baku Higher Oil School students are winners of BP contest


Three undergraduates of Baku Higher Oil School became winners of Techno Fest 2017 project presentation contest conducted by BP-Azerbaijan for interns undertaking summer on-the-job training internship at the company. Fourth-year Chemical Engineering student Tarlan Aliyev took second place, while fourth-year Process Automation Engineering student Aydan Asadova and Petroleum Engineering student Farkhad Gadimov shared third place.

BP conducts the annual Techno Fest contest world-wide for those participating in the company summer internship programs and for those willing to start working for BP. The contest aims to support ideas on innovations development in technical sphere and provides young engineers with opportunity to develop and present their projects as well as to share their experience and results.

In summer 2016, BHOS third-year Process Automation Engineering student Elshan Mikayilov did an internship at BP and participated in the project presentation contest. Having taken the first place, Elshan became the winner of the Techno Fest 2016.

7 September 2017

Drilling works for August 2017


SOCAR (excluding Joint Ventures and Operating Companies) conducted 10184 meters of drilling works in August 2017.

Of this amount, development drilling made up 10130 metres, and the rest

7 September 2017

Vice President of Maire Tecnimont visits Baku Higher Oil School


Rector of Baku Higher Oil School (BHOS) Elmar Gasimov hold a meeting with Gianni Bardazzi, Senior Vice President, Group Special Initiatives and Regions Coordination, Maire Tecnimont Group (Italy), and Niccolo Heilpern, head of Kinetics Technology, branch office of Maire Tecnimont in Azerbaijan. The Rector welcomed the guests and expressed his pleasure to see them at BHOS once again. Speaking about cooperation with the company, he said that within this partnership BHOS students were able to participate in internship programs arranged by Maire Tecnimont. Elmar Gasimov emphasized importance of such mutually beneficial initiatives and expressed his gratitude to the company management for providing professional training opportunities to BHOS students.

In his turn, Maire Tecnimont Group’s Senior Vice President Gianni Bardazzi said that the company management highly appreciates fruitful cooperation between BHOS and Kinetics Technology. In his words, Maire Tecnimont Group pays close attention to professional training of young specialists and development of relations with technical higher educational institutions. Gianni Bardazzi expressed the hope that effective bilateral relations between BHOS and the company would continue to be successful in the future. He also informed about his intention to deliver a lecture on technical subject to BHOS students and teachers.

The internship program for the Higher School’s students is implemented within Cooperation Agreement signed between BHOS and Maire Tecnimont Group on October 19, 2016. Within 17-week program, the interns improve their professional knowledge, gain practical experience, participate in resolving technical problems and are able to master their skills in project management.

Among the students who successfully completed internship program in 2016 were fifth-year BHOS’ Chemical Engineering students Riyad Bakhshiyev and Sanan Ibrahimov. Recently both graduates were invited to work at the company and already started their professional career at KT-Kinetics Technology.

5 September 2017

Crude oil export for August 2017


In August 2017, SOCAR has exported 254 363 tons from Novorossiysk port and 1 733 484 tons from Ceyhan port. Generally, 988 028 tons of crude oil was exported from Novorossiysk port, 1 579 673 tons from Supsa, and 11 400 551 tons from Ceyhan port in January-August 2017.

The indices of crude oil exported by the SOCAR reflect the volumes of crude oil belonging to both State of Azerbaijan and the Company