Page 12 - FSUOGM Week 16 2022

FSUOGM NEWS IN BRIEF FSUOGM

measures to prevent disruptions in the (AgPP) in the first quarter of 2022, 947.5 monthly sales of foreign currency at
supply of meat, flour, and gas. It is entitled mcm were processed (a decrease of 17.3%). auctions by SOFAZ in 2021 amounted to
to impose up to a 5% customs levy on According to SOCAR, in the first quarter $556.6mn.
imports of oil goods. of 2022, gas consumption in Azerbaijan
- The government must resolve a dispute amounted to 4.8bcm (an increase of
over interest rate subsidies required for soft 9.3%). “The growth in gas consumption Shell recalls employees
loans to reserve meat and flour without was affected by a sharp increase in the
boosting total annual budget spending. production of urea and methanol, as well as from JVs with Gazprom,
-The state administrative agency in an increase in the level of gasification in the
charge of oil products is responsible for country to 96.3%,” the company added. Gazprom Neftl
organising work to maintain a steady supply Currently, Azerbaijani gas is exported
of oil, and should sign agreements with to Georgia, Turkey and Europe through British-Dutch energy giant Shell has
businesses that have secured the necessary the Southern Gas Corridor (SGC) system. recalled its employees from joint ventures
special licences. Deliveries to Europe began on December with Russian gas giant Gazprom and
-The state administrative entity in charge 31, 2020, via the TAP gas pipeline, which is oil company Gazprom Neft, a Shell
of food and agriculture shall establish the a component of the SGC. spokesperson told reporters on Wednesday.
types and quantities of foodstuff goods to In addition, Azerbaijani gas is also "This is a gradual process coordinated
be exported in order to avoid food supply exported to Turkey (through the TANAP with the partners so that it has no negative
interruptions, and shall monitor their gas pipelines and the South Caucasus impact on operations of the ventures," the
execution. Pipeline, SKTM) and Georgia (through the spokesperson said.
-It is illegal to cross the Mongolian SKTM and through the Gazimagomed- At the end of February, Shell decided
border with precious metals and foreign Gazakh gas pipeline). to leave all the joint ventures with
currency worth more than MNT20mn According to the forecasts of the Gazprom and Gazprom Neft, including
($6,560). Ministry of Energy of Azerbaijan, in 2022, the Sakhalin-2, Yenisei, Salym Petroleum,
the export of Azerbaijani gas to Turkey and Nord Stream 2 projects. In March, the
through the Southern Gas Corridor will company also decided to close its chain of
SOCAR slightly increased oil amount to 8.2 billion cubic meters, to gasoline filling stations in Russia.
Europe 9.1 bcm. In 2021, Azerbaijan

and gas production in Q1 exported 19.2 bcm of gas, including over 8
bcm to Europe.
SOCAR (State Oil Company of Azerbaijan) US, Saudi tensions rise
produced 1.9mn tonnes of oil in January- after start of Ukraine
Marc, according to the company's press SOFAZ increased foreign
service. Thus, the growth in oil production operation
in January-March 2022 amounted to 0.3%. currency sales by 42% in
Gas production by SOCAR in the first The tensions in relations between the U.S.
quarter of 2022 amounted to 1.917 bcm March, by 10% in Q1 and Saudi Arabia have increased after
compared to the same period last year's the start of Russia's special operation in
1.916 bcm. Thus, from January-March, The State Oil Fund of Azerbaijan (SOFAR) Ukraine, the Wall Street Journal reported
the company increased gas production by sold foreign currencies at foreign exchange late on Tuesday, citing sources.
0.07%. auctions for a total of $526.2mn in March After the start of the operation, the
In 2021, SOCAR produced 7.8 mn 2022, the fund told Interfax-Azerbaijan. global oil prices spiked without Saudi
tonnes of oil (an increase of 6.5%) and 7.8 SOFAZ sold foreign currency at foreign Arabia’s participation, which is why
bcm of gas (an increase of 7%). exchange auctions for a total of $371.2mn the U.S. tends to think that the Saudi
in February. Thus, in March, compared to authorities prefer to develop relations with
February, the sales of foreign currency by the Kremlin. The members of the royal
Azerbaijan increases gas the State Oil Fund increased by 41.8%. family declined proposals to hold phone
According to the monthly data from
conversations with the U.S. authorities
exports by 14.7% in Q1 SOFAZ, the fund sold foreign currencies several times in March.
A source told the newspaper that the U.S.
in the amount of $1.624bn at auctions in
Gas exports from Azerbaijan in the first January-March 2022 (an increase of 9.8% demanded that Saudi Arabia raise oil output
quarter amounted to 5.88 bcm, which is compared to the first quarter of 2021). in order to reduce the prices, but the Saudis
14.7% more than in January-March 2021 SOFAZ is currently the main source of did not react to the request.
according to SOCAR. SOCAR directly foreign currency sales at foreign exchange
exported 770 mcm of gas to Georgia (an auctions. SOFAZ sold $6.679bn at foreign
increase of 50.6%). exchange auctions in 2021 (a decrease
At the Azerbaijan Gas Processing Plant of 8.6% compared to 2020). The average

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