Due to the global oil demand growth, driven by COVID-19 vaccination, OPEC+ continued easing the restrictions on production volumes for participating countries.
This has led to the stabilization and growth of crude oil production at SOCAR. In the second quarter of 2021, about 2 million tons1 of crude oil and 2 billion cubic meters2 of natural gas were produced on the fields operated directly by SOCAR, a 7% increase both in oil and gas production in comparison to the same period of last year. SOCAR reduced the volume of drilling operations during the quarter, as one of optimization measures, down to 14 thousand meters5, as compared to the same period of the last year.
SOCAR and Technip Energies entered today a cooperation agreement to study sustainability measures in the offshore upstream activities, including CO2 emission reduction, improvement of power efficiency and associated optimization in the total cost of ownership.
The cooperation agreement includes evaluation of a joint pilot project for offshore energy production on a floating wind turbine. The pilot project envisages energy supply for upstream operations in the Caspian Sea. This would be the first case of offshore wind energy production in Azerbaijan.
At present, upstream operations in the Caspian Sea mainly use electricity generated from natural gas. Among the main objectives of the pilot project is to determine the prospects for the supply of sustainable energy to the upstream sector of Azerbaijan, reduce natural gas consumption and increase gas exports.
The agreement was signed by Rovnag Abdullayev, SOCAR president and Marco Villa, Technip Italy S.p.A. Chairman of the Board. Speaking at the signing ceremony, the president of SOCAR said: “The energy efficiency is in focus of many energy companies and is an important part of SOCAR's strategic plans. In line with the development trends of technology, we are already entering this area. Our goal is to reduce operating costs, increase energy efficiency and ensure the sustainability of operations at SOCAR.
In 2020, a year remembered as the most turbulent period in the history of the world oil industry, SOCAR managed to reduce the expected net loss due to its positive performance in the development of oil and gas fields, transportation and sales of hydrocarbons.
The company's total turnover in the reporting year amounted to AZN 49.6 billion. The turnover decrease was due to the sharp price decline on the global crude oil and natural gas markets, as well as due to the collapse of petrochemical revenue margins.
Although 2020 was a difficult period mainly in the upstream segment, SOCAR earned AZN 1.4 billion in this segment thank to substantial optimization measures implemented , and AZN 300 million in trade, distribution and sales. This is even more than the total net profit of AZN 1.6 billion in 2019 for these two segments.
However, the company suffered from economic effects of the pandemic in other areas of its operations, including foreign exchange losses in Turkey, where a major part of SOCAR’s foreign investment is concentrated. The amount of these losses surpassed the positive results obtained in other segments, ultimately resulting in loss. Thus, SOCAR's net loss for the year amounted to AZN 1.7 billion. Since 2008, when the company began publishing its consolidated financial statements, this is the second year, which SOCAR finished with a net loss result.
SOCAR Petrofac, a joint venture (JV) between the State Oil Company of the Republic of Azerbaijan (SOCAR) and Petrofac, has secured a new contract valued at around US$25 million to support Azeri Central East (ACE) project of BP in Azerbaijan.
The scope of work includes the provision of Commissioning Technicians and other specialist personnel, and other associated services to support the project at both onshore and offshore work sites in-country.
The ACE project is the latest phase of development in the Azeri, Chirag and Deepwater Gunashli (ACG) contract area in Azerbaijan. The project is designed to produce up to 100,000 barrels of oil per day from a new platform. Construction works are currently in progress with first oil expected in 2023.
SOCAR Petrofac will appoint specialists for the commissioning stage of the topside fabrication, which will take place onshore at the Bayil Yard, where the topside of the future platform is being constructed by SOCAR’s Azfen. After the onshore commissioning of the topside, it will be transported and positioned on the jacket offshore. The scope of work to be carried out by SOCAR Petrofac’s personnel includes, but is not limited to mechanical and electrical installation, instrumentation, and telecommunications.
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
When investors and credit organizations wish to cooperate with any company, first of all the international rating of the company in discussion is reviewed.read more