TODAY.AZ / Business

Gas production increases

27 June 2019 [16:48] - TODAY.AZ

By Azernews


By Leman Mammadova

Azerbaijan increased gas production in the first five months of 2019, while the production of oil and gas condensate and oil products has declined.

The country produced oil products worth 1.26 billion manats in January-May 2019. According to the State Statistical Committee, this is 2.7 percent less than in the same period of 2018.

Presently, state oil company SOCAR is working on the modernization of the existing processing facilities due to the growth of fuel consumption in Azerbaijan.

Azerbaijan produced 4.76 million tons of petroleum products in 2018 compared to 4.65 million tons produced in 2017.

In the first five months of 2019, the production of motor gasoline reached 499,800 tons, naphtha - 136,400 tons, kerosene - 254,400 tons, diesel fuel - 885,900 tons, mazut - 32,800 tons, lubricating oil - 6,800 tons, oil bitumen - 72,800 tons, petroleum coke - 102,000 tons.

Meanwhile, about 15.7 million tons of oil and gas condensate were produced in Azerbaijan in January-May 2019, which is 2.8 percent less than in the same period last year.

Over the same period, the volume of produced gas amounted to almost 14.5 billion cubic meters, including more than 10 billion cubic meters of commercial gas. Over the year, these figures increased by 22.6 and 40.4 percent, respectively.

It should be noted that last year, Azerbaijan produced 38.76 million tons of oil and gas condensate, which is approximately equal to 2017. The gas production in Azerbaijan amounted to 30.59 billion cubic meters (an increase of 7.1 percent) in 2018, commercial gas production - 19.2 billion cubic meters (an increase of 5.8 percent).

Currently, an average of 110,000 tons of oil and 94 million cubic meters of gas are extracted per day in Azerbaijan from offshore and onshore fields, including the Shah Deniz, Azeri-Chirag-Gunashli (ACG) and Umid fields, which are jointly operated with foreign companies.

ACG is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years. Oil extraction from the field began in November 1997.

Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.

On September 14, 2017, a modified and redeveloped agreement was signed on joint development and shared distribution of production from the Azeri, Chirag fields and the deepwater part of the Gunashli field (ACG). The new agreement provides for the development of the field until 2050.

ACG participating interests are as follows: BP (30.37 percent), SOCAR (25 percent), Chevron (9.57 percent), INPEX (9.31 percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL) (2.31 percent).

URL: http://www.today.az/news/business/183926.html

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