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World Bank’s Global Gas Flaring Reduction Partnership hopes to learn from and share Azerbaijan’s experience

The World Bank, Global Gas Flaring Reduction Partnership (GGFR) held its annual meeting in Azerbaijan for the first time on May 7-8, 2018.
The meeting coincided with the 10th anniversary of the cooperation between SOCAR and the World Bank working toward the elimination of global warming and climate change. As a result of the project implemented jointly by SOCAR, BP and the GGFR approximately 4.5 billion cubic meters of flaring gas have been utilized in recent years.

The participants of the meeting will visit SOCAR’s production sites to learn from the experience of Azerbaijan on gas flaring reduction, its achievements, as well as the possibility of sharing this knowledge throughout the world. 50 senior officials and experts represent 18 countries and 13 international oil and gas corporations at the GGFR annual meeting.

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SOCAR and BP sign new production sharing agreement for Azerbaijan exploration

• New deal to explore new Caspian opportunities

• Potential to support Azerbaijan’s long-term production

SOCAR and BP today signed a new production sharing agreement (PSA) for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijan sector of the Caspian Sea.

The PSA was signed in London, in the presence of Azerbaijan’s President Ilham Aliyev and UK Prime Minister Theresa May, by Rovnag Abdullayev, President of SOCAR, and BP’s Group Chief Executive Bob Dudley.

Speaking at the signing event Mr Abdullayev said: “We have a long tradition of successful cooperation with BP. I believe that the synergies between modern upstream technology and unique historical experience, embodied at both companies, create a solid foundation for our continued success. Being based on fair and equal conditions, today’s agreement will become an important milestone in the pursuit of the highest degree of efficiency in the joint development of the hydrocarbon resources of Azerbaijan.” .

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Shah Deniz II gas sales contract transferred to Edison

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. Subsequently the acquisition of the GNVI and transfer of the gas supply contract were accomplished.

This transfer demonstrated a constantly growing interest in Azerbaijani gas among major energy players in Europe.

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Drilling, production and export figures for the first quarter of 2018

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.

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The State Oil Company of Azerbaijan… at a glance

Discover SOCAR

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.

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International ratings

When investors and credit organizations wish to cooperate with any company, first of all the international rating of the company in discussion is reviewed.

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