Page 13 - FSUOGM Week 02 2022

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temperature season,” Kobolev said in an article The contract for the development of the
published on the website Zerkalo Nedeli Turkmenistan and Iran Azeri, Chirag fields and the deep-water part
(Mirror of the Week) on 10 January. Kobolov of Guneshli was signed on September 20,
believes that in the most optimistic scenario to raise gas supplies to 1994, and entered into force on December
the government will have to find an estimated 12 of the same year. This agreement expired
$2bn to $6bn to support the country’s largest Azerbaijan to 15bn cubic in 2024. However, on September 14, 2017,
public company. a new contract was signed in Baku for the
The pessimistic scenario will involve metres development of the ACG block, calculated
siphoning off gas from the transit pipelines. until 2050.
As a result of syphoning off gas, Russia Ashgabat and Tehran have said they plan to Under the new contract, the share of
may suspend transits through Ukraine and increase the volume of Turkmen gas supplied British BP (project operator) is 30.37%,
the transit contract signed in December 2019 to Azerbaijan via Iran to 15bn cubic metres SOCAR (25%), Hungarian MOL (9.57%),
could be ripped up. When Nord Stream 2 per year. American ExxonMobil (6.79%), Indian
launches Gazprom could refuse to use the Based on an earlier agreement, Iran’s ONGC (2.31%), Japanese Inpex Corp. (9.31%)
Ukrainian route. northern provinces now receive gas from and ITOCHU Oil (3.65%), Norwegian
At the moment Ukraine’s underground gas Turkmenistan in exchange for gas transported Equinor (7.27%), Turkish TPAO (5.73%).
storages are 43.7% full, while 16.452bn cubic to Azerbaijan from Iran’s west. Iran currently Investments under the new agreement are
metres remain vacant. receives 1.5-2.0 bcm from Ashgabat and it is estimated at $43bn for the period until 2050.
Gazprom CEO Alexey Miller on December bound by the agreement to transfer the same The volume of oil production is planned to be
29, 2021 said that Ukraine’s underground gas amount to Azerbaijan. over 500mn tonnes.
reserves on December 24 were at a record low. The gas swap arrangements were among The contract for the development of the
issues of co-operation in the energy sector Shah Deniz field was signed in Baku on June
discussed on January 9 in Tehran by Iranian 4, 1996, and ratified by the parliament on
Berdimuhamedov orders officials and a delegation from Turkmenistan, October 17 of the same year. The participants
in the Shah Deniz project are: BP (operator,
Trend reported, referring to Iranian Oil
officials to extinguish fires Minister Javad Owji. 28.83%), Petronas (15.5%), SOCAR (16.67%),
According to Owji, a package of
LUKOIL (10%), NICO (10%), TPAO
of Turkmenistan’s ‘Gateway documents on cooperation in the field of (nineteen%). At the same time, Petronas
agreed to sell its share in the project, which
energy will be signed by the countries in the
to Hell’ desert gas crater coming days. will be bought by LUKOIL (9.9%), SOCAR
After the gas swap contract was signed in
(4.35%) and BP (1.16%). The deal is scheduled
Turkmenistan’s president has issued an order November, the Iranian oil ministry described to close by the end of January 2022.
to officials to find a way of extinguishing the it as a “step forward in energy ties” among the Gas production from the Shah Deniz
country’s “Gateway to Hell”, a fire that has neighbours. field began in December 2006. The Oil Fund
been burning for decades in a huge desert gas of Azerbaijan, established in December
crater. 1999, accumulates revenues from the
Gurbanguly Berdimuhamedov said he SOFAZ’s revenues for 2021 implementation of oil contracts, in particular
wanted it put out for environmental and from the sale of profitable oil and gas from the
health reasons. The move would also mean exceeded $6.8bn state, transit tariffs for the transportation of oil
more gas could be retained for exporting, he and gas across the country, from the lease of
said. Revenues to the State Oil Fund of Azerbaijan state property, etc..
Nobody is quite sure how the blaze in (SOFAR) from the sale of oil and gas from
the Darvaza crater in the Karakum Desert the Azeri-Chirag-Guneshli (ACG) block and
started. Many claim it was ignited when a the Shah Deniz field in 2021 amounted to Siemens signs 5-year
Soviet drilling operation went wrong in 1971. $6.853bn, which is 79.6% more than in 2020.
But Canadian explorer George Kourounis “In 2021, SOFAZ’s revenues from the sale contract with Socar Turkey
examined the crater’s depths in 2013 and came of Azerbaijan’s profitable oil from the ACG
to the conclusion that no-one can actually say block amounted to $5.9bn (an increase of for energy distribution
how it started [see this 2013 BBC interview 69.4%),” the fund said in a statement.
with Kourounis]. According to the fund, the total revenues infrastructure
The crater is a popular tourist attraction. of SOFAZ from the sale of profitable gas and
It was renamed the Shining of Karakum by condensate produced from the Shah Deniz Siemens Turkey, a unit of Siemens (Frankfurt/
Berdimuhamedov in 2018. field in 2021 amounted to $884.793mn (an SIE), has signed a 5-year contract with Socar
There have been attempts to put out the increase of three times). Income from the sale Turkey to develop and renovate energy
fire. One attempt occurred in 2010, but the of condensate in the specified period amounted distribution infrastructure and SCADA
experts, acting on Berdimuhamedov’s orders, to $302.817mn (an increase of 35.5%), and gas (Supervisory control and data acquisition)
failed to devised a solution. $581.976mn (an increase of 8.3 times). systems of Star Refinery, Socar Depolama
Berdimuhamedov, whose cult of The total receipts to SOFAZ from the sale (Socar Storage) and Petkim (PETKM), the
personality includes projecting himself as of Azerbaijan’s profitable oil from the ACG parties said on January 6.
an “action man”, was once filmed speeding block for the period from 2001 to January 1, Socar Turkey was launched in 2006 by the
around the crater in a fast car. 2022, amounted to $155bn, from the sale of State Oil Company of the Azerbaijan Republic
profitable gas and condensate from the Shah (Socar). It has a 51% stake in Petkim. Siemens
Deniz field for the period from 2007 to 1 has been active in Turkey since 1856.
January 2022 $4.5bn

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