Prospective collaboration on biomethane, hydrogen and sustainable mobility. Possible developments regarding delivery of green gas through the Southern Gas Corridor including the Trans Adriatic Pipeline (TAP)
Rome, 20 February 2020-Snam, one of the worldâ€™s leading energy infrastructure companies, and SOCAR, a State-owned energy company of the Republic of Azerbaijan operating in Azerbaijan and other countries, signed a cooperation agreement today to study the development of renewable gases and use of sustainable energy, with a view to their delivery through the Southern Gas Corridor including Trans Adriatic Pipeline (TAP) in the future.
Both companies own a 20% stake in TAP and SOCAR is a major shareholder of the other Southern Gas Corridor projects.
On February 19, SOCAR and Sumgait Technology Park (STP) signed a joint venture agreement. The new joint venture, called SOCAR-STP, will manage the production of the largest mechanical equipment workshop and heavy crane plant in the CIS region. The agreement was signed by Emin Mammadov, General Director of STP and Yashar Latifov, SOCAR Vice President. SOCAR President Rovnag Abdullayev attended the signing ceremony.
The establishment of a joint venture aims to improve cooperation between the global brand of SOCAR and Sumgait Technology Park, one of the country's largest industrial complexes, to further develop the material and technical base in the oil and gas sector and ensure the use of advanced technologies, technical services and expert exchanges. The joint venture aims to increase local production capacity to meet international standards, to become a leading and competitive company offering oil and gas equipment and technology services in the CIS and broader markets.
The key strength of the new joint venture is the combination of professional and experienced technical personnel, industry competencies and modern equipment that meet current market requirements.
â€˘ Last year SOCAR maintained stable oil and gas production
â€˘ Natural gas production increased by 17% amid natural decline in oil production in the country
â€˘ Natural gas consumption in the country increased by almost 9% mainly due to the development of gas chemical industry and widening the household gas supply infrastructure .
â€˘ Azerbaijan increased natural gas export by 23%; 2.8 billion cubic meters of gas were transported by the Southern Gas Corridor .
â€˘ Export of refined and petrochemical products grew by 22% amid SOCARâ€™s new petrol- and gas chemical facilities .
SOCAR and BP announced today that the first exploration well was spudded on the Shafag-Asiman offshore block in the Azerbaijan sector of the Caspian Sea on 13 January. SOCAR and BP each hold 50% equity interest. BP is operator during the exploration phase of the project. Drilling is conducted by SOCARâ€™s Caspian Drilling Company.
The SAX01 well is the first to be drilled in the contract area and is in accordance with the PSA that was ratified by the Azerbaijani parliament in 2011.
The well is planned to reach total depth of up to 7000 metres, which is expected to take around nine months, and following this, well data will be analysed and, if successful, an evaluation programme may be conducted to confirm the results.
Rovnag Abdullayev, president of SOCAR, said: â€śA while back, we have successfully completed seismic study in the Shafag-Asiman block with our partner BP. Now we are embarking on the next step, and starting to drill an exploration well. The exploration drilling will allow to fully uncover the blockâ€™s potential. We are proud that today Azerbaijani companies -SOCARâ€™s business units provide all key services, including the construction of platforms and jackets as well as drilling, for such complex projects, as Shah Deniz, Azeri-Chirag- Gunashli and Shafag-Asiman.
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