Page 12 - FSUOGM Week 19 2022

FSUOGM NEWS IN BRIEF FSUOGM

round, in December, the parties reached $45bn in the six month-period from hinting at possible Russian intervention in
an agreement on two draft agreements, November to April. oil delivery..
in which the European side included the In May, a relatively limited recovery in
positions of Iran. external balances is set to continue as gas
On December 31, the negotiations were bills decline and the tourism season begins. BP increased gas
suspended due to the New Year holidays;
on January 3, the parties continued the production from the Shah
dialogue in Vienna. Iranian spokesman Azerbaijan's oil production
Bagheri-Khani said the talks were going Deniz field by 18% in Q1, oil
well, but US State Department spokesman quota within OPEC+ will
Ned Price assessed the progress in Vienna decreased by 11.4%
as “modest”, urging Tehran to take the issue increase to 695,000 bpd in
seriously. BP-Azerbaijan produced 6 bcm of gas from
June the Shah Deniz field in the Azerbaijani
sector of the Caspian Sea in 1Q22, which is
Turkmen carbamide plant Azerbaijan's production quota in June 17.6% higher than in January-March 2021,
under the OPEC+ deal will increase by
according to the company's press release.
reports export volume 7,000 b/d to 695,000 b/d, the country's tonnes) were also produced from the Shah
About 9mn barrels of condensate (1mn
Ministry of Energy said in a statement.
Gas-rich Turkmenistan's carbamide "Azerbaijan supported the decision of Deniz field, which is 15.4% higher than in
production factory Garabogazcarbamide, the OPEC+ ministers at the 28th meeting the 1Q21. "Currently, the field's production
located in the Balkan region, exported over to increase oil production by 432,000 bpd capacity is approximately 72 mcm per day
281,100 tonnes of carbamide fertilizers in June 2022 (by all participants in the or over 26 bcm per year," the company said.
from January to March. This accounted for deal ). In accordance with this decision, The company also reported that during
around 82% of overall output. Azerbaijan's oil production quota in June the reporting period, through the South
The plant is designed to produce 1.1mn 2022 will increase by another 7,000 bpd - Caucasus Pipeline (SCP or Baku-Tbilisi-
tonnes/year of carbamide, also known as up to 695,000 bpd," the ministry said in a Erzurum), transportation averaged 56.2
urea, and 660,000 tonnes/year of synthetic statement. The Ministry of Energy notes mcm of gas per day (in January-March
ammonia. Natural gas is the primary raw that with an increase of 7,000 b/d of daily 2021 50.74 mcm per day). Operating costs
material. The factory produced more than production, the overall level of reduction in for maintenance of YuKTM amounted to
989,100 tonnes of carbamide fertilizers oil production by the country in June 2022 $14mn, capital costs $0.3mn.
and 570,400 tonnes of liquid ammonia last from October 2018 will be 23,000 b/d. Meanwhile, oil production at the Azeri-
year. Chirag-Guneshli (ACG) block of fields in
Industries that can play a key role in 1Q22 amounted to about 39mn barrels (5
import substitution programmes and BP suspends oil exports million tonnes). As reported before by bne
enhancing the country's export potential IntelliNews, in the first quarter of 2021, a
are emerging as one of the most important via the Baku-Supsa total of 44mn barrels of oil (6mn tonnes)
sectors of the country's troubled economy. were produced from the ACG block. Thus, oil
pipeline production from this contract area in January-
March in barrels decreased by 11.4%.
Turkish energy imports The consortium operating the Azeri- block development project decreased by
According to BP, the cost of the ACG
Chirag-Guneshli (ACG) megastructure
leap 134% y/y to $7.75bn in the Caspian Sea led by British oil giant 12.6% compared to the first quarter of 2021,
BP has suspended oil shipments from
to $529mn. “Of this amount, operating
in April Sangachal to a Georgian port on the Black expenses amounted to $133mn, capital
Sea along the Baku-Supsa route, according
$396mn,” the company said.
Turkish energy imports leapt 134.1% y/y to BP Azerbaijan. The average daily oil production at the
to $7.75bn in April, according to trade According to BP, the last time oil was block in the first quarter of 2022 amounted
ministry data released on May 5. exported via this route was in April. At that to 434,000 barrels (484,000 barrels in the
For the first four months of the year, a time, oil was transported from the port first quarter of 2021). At the same time, an
173.1% jump to $32.75bn was recorded. of Supsa by two tankers belonging to BP average of 25,000 b/d of oil was produced
The trade deficit as a whole came in and the State Oil Company of Azerbaijan from the Chirag platform (30,000 b/d in
at $6.1bn in April, marking a doubling of (SOCAR). 1Q21), Central Azeri 106,000 b/d (112,000
the gap year on year, data from the trade All oil produced by the consortium b/d), Western Azeri 112,000 b/d (130,000
ministry also showed. at ACG is likely to be sent via the Baku- b/d), Eastern Azeri 70,000 b/d (79,000 b/d),
It was last September that Turkey’s Tbilisi-Ceyhan (BTC) pipeline. According Deepwater Gunashli 79,000 b/d (89,000
latest monetary easing cycle begin. Since to traders, deliveries along the Baku- b/d), Western Chirag 42,000 b/d (44,000
November, the trade deficit has remained Supsa route were suspended due to the b/d).
above the $5bn-level, accumulating to 'complexity of logistics in the Black Sea',

P12 www. NEWSBASE .com Week 19 11•May•2022