Page 18 - FSUOGM Week 10 2022

FSUOGM NEWS IN BRIEF FSUOGM

tonnes, the energy ministry said in a Guneshli (ACG) block, and 2.2 bcm of consumers”, GTSO CEO Sergiy Makogon
statement on March 4. "In the total volume natural gas from the Shah Deniz field," the said in a statement.
of exports of oil with condensate in the statement said. The Ukrainian operator also said that it
reporting period, over 2.2mn tonnes fell The ministry said that since the start of had ensured supplies from two other EU
to the share of oil from the ACG block development and as of February 1, 2022, neighbours, Hungary and Slovakia.
and condensate from the Shah Deniz field, over 191 billion bcm associated gas has “Gaz-System has made a decision to
79,800 tonnes to the share of SOCAR," the been produced from the ACG block, and temporarily change the product offer
ministry said. about 160 bcm of natural gas from the Shah at the exit point from Poland towards
According to the Ministry of Energy, oil Deniz field. Over the entire period, 110 bcm Ukraine. The capacity not contracted under
production with condensate in Azerbaijan of gas were exported from the Shah Deniz previously available [long-term] products
in January 2022 amounted to 2.9mn field. will be made available … as firm capacity
tonnes. At the same time, 1.8mn tonnes Production of oil and associated gas in day-ahead and intraday products,” the
of oil were produced from the ACG block, from the ACG block began in November Polish operator said.
0.7mn tonnes were produced by SOCAR, 1997. Currently, the share of British BP “Such solution gives the network
and 0.4mn tonnes of condensate from the (project operator) is 30.37%, SOCAR users present at the Poland-Ukraine gas
Shah Deniz field. (25%), Hungarian MOL (9.57%), American interconnection the certainty of the delivery
In addition, 583,000 tonnes of oil ExxonMobil (6.79%), Indian ONGC of natural gas to users in Ukraine,” Gaz-
were processed in Azerbaijan in January. (2.31%), Japanese Inpex Corp. (9.31%) and System also said.
The ministry said that since the start of ITOCHU Oil (3.65%), Norwegian Equinor The capacity will be offered starting on
their development and as of February 1, (7.27%), Turkish TPAO (5.73%). March 6.
2022, a total of 583mn tonnes of oil with The contract for the development of the Ukraine is one of Europe’s biggest gas
condensate have been produced from the Shah Deniz field was signed in Baku on consumers. Last year, the country of 41
ACG block and from the Shah Deniz field, June 4, 1996 and ratified by the Milli Majlis million people burned just over 27bn
including 548mn tonnes of oil from the on October 17 of the same year. The share cubic metres (bcm) of gas, most of it from
ACG, and from the Shah Deniz field 35mn of the parties in the contract is as follows: domestic production.
tonnes of condensate. BP (operator, 29.99%), SOCAR (21.02%), A quarter of Ukrainian gas usage is for
Production of oil and associated gas LUKOIL (19.99%), NICO (10%), TPAO heating while 44% fuels industry, the army,
from the ACG block began in November (19%). and other sectors, Reuters reported on
1997. Currently, the share of British BP Gas production from the Shah Deniz February 24.
(project operator) is 30.37%, SOCAR field began in December 2006. As
(25%), Hungarian MOL (9.57%), American previously reported, Azerbaijan exported
ExxonMobil (6.79%), Indian ONGC over 19 bcm of gas in 2021. At the same Azerbaijani oil rises to $116
(2.31%), Japanese Inpex Corp. (9.31%) and time, deliveries to Europe began for the first
ITOCHU Oil (3.65%), Norwegian Equinor time, the volume of which amounted to 8.2 per barrel
(7.27%), Turkish TPAO (5.73%). bcm.
The contract for the development of the Azerbaijani oil of the Azeri LT CIF brand
Shah Deniz field was signed in Baku on has risen in price by 3.75% ($4.2) over the
June 4, 1996, and ratified by the parliament Poland offers Ukraine gas past day, amounting to $116.1 per barrel.
on October 17 of the same year. The share This is the maximum price for Azerbaijani
of the parties in the contract is as follows: import capacity oil since August 2014.
BP (operator, 29.99%), SOCAR (21.02%), When prices for other grades of the
LUKOIL (19.99%), NICO (10%), TPAO Poland’s gas grid operator, Gaz-System, oil change, the cost of Azerbaijani light oil
(19%). Gas production from the Shah has offered Ukraine capacity to allow gas also changes. Considering that Azeri Light
Deniz field began in December 2006.. imports via the Polish grid, Gaz-System and belongs to light and low-sulphur grades of
its Ukrainian peer GTSO said on March 4. oil, it is sold at a premium and costs more
Ukraine, once dependent on imports than Brent.
Azerbaijan exported 0.8 from Russia, has been buying gas from on Wednesday was $112.93 per barrel. In
The price of Brent at the close of trading
Western Europe since 2015 after Moscow
bcm gas to Europe in annexed Crimea and seized parts of eastern the state budget of Azerbaijan for 2022, the
Donetsk and Luhansk regions the preceding
average oil price is set at $50 per barrel. The
January year. lowest price for Azerbaijani oil – $15.81 per
Fighting an unprovoked Russian
barrel – was recorded on April 21, 2020, the
Gas exports from Azerbaijan in invasion since February 24, Ukraine has highest, in July 2008, was $149.66.
January amounted to 2 bcm, the energy been seeking security on all possible fronts, In 2021, the average price for
ministry said in a statement released on including in the vital energy sector. Possible Azerbaijani Azeri Light oil on CIF delivery
4 March. According to the Ministry of destruction of the country’s gas pipelines terms in 2021 was $71.6/bbl ($43.7/bbl in
Energy, during the reporting period, 0.8 by the Russian could bring upon severe 2020). Azeri Light grade oil is produced
bcm were supplied to Turkey, 0.8 bcm to disruption to gas supplies, a third of which under the Azeri-Chirag-Guneshli (ACG)
Europe, and 0.4 bcm to Georgia. At the is used by households. field development contract, in which
same time, over 0.5 bcm of gas was supplied “Today, this is a critical issue for the SOCAR's share is 25%. Profit oil is
to Turkey through the TANAP gas pipeline country’s survival. I am grateful to our distributed among project shareholders
in January. colleagues – European TSOs [transmission depending on their share in the contract.
“In January 2022, Azerbaijan produced system operators] for their important ACG accounts for 2/3 of the oil produced in
4.1 bcm of gas, which is 12.9% higher than contribution to strengthening Ukraine’s Azerbaijan.
the same period last year. At the same time, energy security. On the energy front, we
SOCAR produced 0.7 bcm of gas, 1.2 bcm continue taking every effort to ensure
of associated gas from the Azeri-Chirag- uninterrupted gas supply to Ukrainian

P18 www. NEWSBASE .com Week 10 10•March•2022