SOCAR to resume gas supply to Russia

By: Aynur Jafarova

Azerbaijan’s state energy company SOCAR plans to resume gas supply to Russia after completing the restoration work on the pipeline that runs from Azerbaijan to Russia.

The news was announced by SOCAR head Rovnag Abdullayev on May 13.

He noted SOCAR is not currently exporting gas to Russia due to the ongoing repair and restoration work on the pipeline.

Gas supply has been suspended since January 2014.

“Gas supply hasn’t resumed yet. But this doesn’t affect the contract, as its terms allow us to supply gas at any time,” Abdullayev said.

SOCAR exported around 1.37 billion cubic meters of gas in 2013.

Azerbaijan supplies gas to Russia on the basis of an agreement on the purchase and sale of Azerbaijani gas with a possibility of extension.

The deal was signed between SOCAR and Russia’s Gazprom in Baku on October 14, 2009.

Gazprom was to receive two billion cubic meters of gas in 2011 and over two billion cubic meters in 2012, but the Russian side did not receive the full amount of the planned volume in 2012.

An additional agreement to double the volume of Azerbaijani gas from 1.5 billion cubic meters to 3 billion cubic meters was signed by both sides in Sochi on January 24, 2012.

Loan agreements on Star refinery to be inked

Abdullayev went on to say that signing loan agreements within the project on the construction of a new Star refinery in Izmir, Turkey, will take place in Istanbul in late May.

Loan agreements with export and import banks in London are also planned to be signed by the end of May.

“The agreements haven’t been signed yet, but all issues have already been agreed on,” Abdullayev added.

Development program on Absheron field to be considered by year-end

SOCAR head also noted a program on the development of the Absheron gas condensate field in the Azerbaijani sector of the Caspian Sea will be presented for the consideration of the board of the field’s development consortium by the end of the year.

He said preparations on the development of the program are currently underway.

Abdullayev stressed the development of the field envisages the annual production and sale of five billion cubic meters of gas.

The discovery of the Absheron large natural gas field in the Azerbaijani sector of the Caspian was announced in September 2011 following the drilling of an exploration well.

The field’s potential reserves amount to 350 billion cubic meters of gas and 45 million tons of condensate.

The participants of the Absheron project include SOCAR -with a share of 40 percent- and French companies Total -with 40 percent- and Gaz De France Suez -with 20 percent.

The contract regarding the field was signed on February 27, 2009, between SOCAR and Total. Later, Total sold 20 percent equity participation to Gaz De France Suez.

SOURCE: AZER NEWS

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