Caspian European Club, SOCAR organize business forum VIDEO

Baku, October 14, AZERTAC

A business forum co-organized by the Caspian European Club and the State Oil Company of the Republic of Azerbaijan (SOCAR) has today been held in Baku.

The event was attended by First Vice President for Geology, Geophysics and Development of Fields of SOCAR Khoshbakht Yusifzade.

Addressing the event, Khoshbakht Yusifzade spoke about development of the oil-gas industry of Azerbaijan. He emphasized the importance of laying the foundation of the Southern Gas Corridor, the significance of the Contract of the Century which was of both political and economic importance. “The Contract of the Century proved Azerbaijan’s being a stable country and favorable place for carrying out an activity to the whole world. Economic dividends lied in signing further new oil-gas contracts with 33 companies of the world,” Yusifzade emphasized.

He called the statistical figures of development of the oil-gas industry. Azerbaijan produced 9 mln tonnes of oil per year in 1997 while this indicator totaled 51 mln tonnes per year in 2010. “In this way, production in the country increased by 5.6 times..Yusifzade stated that global oil production varies and declines as the years go by. Azerbaijan produced 42 mln tonnes of oil in 2014. 34 mln tonnes of this volume fell to the share of Azeri-Chirag-Guneshli (ACG) fields. The rest production fell to the share of old fields.”

According to K.Yusifzade, the task to maintain 2015 production rate at that of 2014 has been set. There are 86 wells currently operating at ACG fields. They produce 86 thousand tons of oil and 34 mln cubic meters per day.

“A total of 381 mln tonnes of oil has been produced since the commissioning of operation of ACG fields. 208 mln tonnes of this volume are profit oil of Azerbaijan. The funds gained from sale of profit oil are accumulated in the State Oil Fund of Azerbaijan and spent on the development of the country.”

According to him, 23.5 mln tonnes of oil were produced at ACG fields within 9 months of 2015. 15.5 mln tonnes or 66% of it are profit oil of Azerbaijan. “The share of profit oil of Azerbaijan will grow year by year and reach 75-80%,” Yusifzade emphasized.

He also noted that a total of 391 mln tonnes of oil was exported from Azerbaijan. “284 mln tonnes of this volume was shipped via Baku-Tbilisi-Ceyhan (BTC) pipeline.”

K.Yusifzade emphasized that ACG fields are the biggest oil fields in Azerbaijan. “Considering that geological and recoverable reserves of ACG are estimated at 2 bln 200 mln tonnes and 1 bln tonnes respectively, only 17% of this volume has been extracted so far”. 623 mln tonnes of oil or 28% of geological reserves will be extracted until 2024, the year of the contract expiry. A possibility of prolonging the term of the contract is under consideration now. We hope to have these negotiation completed by the end of this year”, K.Yusifzade noted.

Speaking about Shah Deniz field, K.Yusifzade noted that proven reserves of the field total 1.2 trillion and 240 mln tonnes of condensate. “In future they can increase by another 300 bcm”, he said.

Production within the first stage of development of this field totals 29 mln cubic meters of gas per day. This gas is consumed in Azerbaijan and exported to Turkey and Georgia. New wells are drilled within the framework of the second stage of development in order to receive gas, to be exported to Europe, by 2018.

He also spoke about operations performed by own resources of SOCAR. “He reminded that the Azerbaijani geologists had discovered Umid field where two wells have been drilled. One more well is still being drilled. Two wells are currently producing up to 1 mln cubic meters of gas and 150 thousand tonnes of condensate per day.”

Honorary membership certificates of the Caspian European Club were presented to Khoshbakht Yusifzade during the business forum. New member companies of the Caspian European Club received certificates

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